1. Do You Want to Live a Life of Financial Freedom?

It is the dream of many people to be financially free, and if you are reading this publication you may also be included in that group. Financial freedom is something that is attainable by almost anyone, but that doesn't necessarily mean that it is going to be an easy road to travel from where you are now to where you would like to be. In fact, it often requires a significant amount of work, but if you do things properly you can get there in a surprising amount of time by simply compounding on your successes.

Before we begin to discuss how to live a life of financial freedom, it is important to identify what the words actually mean. If you are reading this publication, it is likely that you have your own idea of what financial freedom is, but it may not be as accurate as it needs to be. Some people consider financial freedom to be a matter of wealth and having an excess of money so that you can do anything that you want in life. In reality, however, you do not need to be rich in order to be financially free. What is the true definition of financial freedom?

Quite simply, financial freedom is having the ability to manage all of your finances without having to work on an ongoing basis in order to achieve it. Somebody that is considered to be wealthy but still needs to work in order to support his or her lifestyle is not truly financially free. On the other hand, a family that lives a very humble and simple lifestyle and has the ability to support that lifestyle without working is financially free. Although the perspective may be somewhat different, the idea is the same. You need to be able to manage your finances and to support your lifestyle without having to work on an ongoing basis to achieve it.

In order to achieve a life of financial freedom, you need to take the proper steps from the very start. One of the more important things that you can do is to look at some of the benefits of being financially free, many of which extend beyond the financial aspects that are often considered. Since it is often a long road and one that can be difficult, understanding the benefits in advance can give you the motivation to get started and to continue on the course.

You may also be wondering if it is really the right time for you to try to achieve a life of financial freedom. Some people who are younger may feel this way, wondering if they shouldn't wait until their lives are more established to achieve the goal. Individuals who are older and may be facing retirement may also be wondering if it is too late to live a life of financial freedom. We will discuss those factors in another chapter of this publication, and you will likely be surprised with the answers.

One aspect that needs to be done in order to achieve the life of your dreams is to make sure that you are prepared mentally to do so. You may have the desire to live a life of financial freedom, but is your mental outlook truly focused on that goal? Changing your mental outlook is an important factor that we will consider in this publication. You will find that it is not only important for the finances in your life, it is important for any success that you would like to achieve.

What type of goals do you have in your life? Most of us set goals, but we may set them haphazardly and we don't really focus on achieving them. In fact, many of our goals may be nothing more than resolutions that we make as the start of the New Year approaches. Like many of those goals, they are often left by the wayside and forgotten sometime during January. In order for you to achieve the life of your dreams financially, you need to develop goals that are going to help you to get there.

Of course, there are many methods of setting goals and you will likely hear so called "experts" talk about the importance of goals and what can be done to achieve them. In reality, however, there are very few things that need to be considered when setting goals in order to achieve them. In this publication, we will discuss developing SMART goals, which is an acronym that can easily help you to stay on target with the goals that you set. It doesn't matter if you are trying to achieve something for the short term or if it is a lifelong goal, using the SMART goal principles will help you to get where you want to be.

Do you have a budget established? Many families have a general budget, or they at least have an idea of where they stand financially. If you want to be free of financial difficulties, you need to go beyond the typical columns of income versus bills. You need to dig deep into your budget and establish something that is going to help you to achieve your goals in the shortest amount of time possible. We will discuss the need for this type of budget and how to establish one properly in a further chapter of this publication.

Not all who read this book are going to be secure in their finances. In fact, you may be having significant financial difficulties, and you may be living from one paycheck to the next - just trying to get by. Don't think that you are not able to achieve financial freedom just because you are suffering financially. In reality, there are many things that can be done to help you to go from rags to riches, so to speak, and to live a life that is financially secure. We will discuss where to start on the path to financial freedom if you are having financial difficulties at this point.

One of the questions that many people ask about their finances is whether they should use their extra money for savings or for investments. Although this is something that may differ from one individual to another, it is important for you to explore the opportunities and the potential benefits and problems associated with each path. Looking at those factors in detail can assist you in using your positive cash flow to the best advantage.

Have you ever heard the expression cash is king? That certainly is true in many instances, but when it comes to living a life of financial freedom, you need to maintain some balance. Although cash may offer a wide variety of benefits, you also need to consider the possibility of using credit. Using credit as part of your financial freedom can really help you to get more out of the positive cash flow that you are experiencing.

A number of other factors will also be considered in this publication, including the need to improve your health if you want to improve your financial standing. We will also discuss your personal worth and how you can increase what you are worth, by increasing your perceived value. These are factors that can help to improve your financial outlook and can quickly make differences in what you are able to achieve financially.

The road to financial freedom may not be an easy one to travel, but it is one that is well worth the journey. Imagine a time when all of your stress and worries over money are going to be a thing of the past, something that can be achieved if you live a life that is within your means. Of course, financial freedom also offers you opportunities to expand your life in a number of ways. This publication is a guide to helping you to get on the path to financial freedom and to finding your way successfully to the goal!

2. The Benefits of Being in Control of Your Finances

When you think about living a life of financial independence, it is likely that you are considering the many benefits that will come your way. Most of the benefits that you are thinking about are likely in regards to the financial situation and how it will affect your cash flow. In reality, however, there are many different benefits that you might experience and some of them you may not have considered before. In this chapter we are going to take a close look at some of those benefits and what you can begin to experience, once you are able to achieve the financial independence that you desire.

First of all, it's important to recognize that the exact benefits that you experience may be different from what is experienced by someone else. Although there may be some similarities from one individual to another, it really depends upon your particular circumstances, both before you achieve financial independence and after you achieve it. That being said, the following benefits are some that most people will experience. They will see them not only after they are able to completely remove the financial roadblocks in their life but also while they are working on that goal.

Cash Flow - One of the most important things to consider when living a life of financial independence is the cash flow that you will experience. Many families, in fact the majority of families, are living from one paycheck to the next and they may have a difficulty with positive cash flow at the end of the month. Living a life of financial independence means that your bills are going to be covered and that you will have the positive cash flow that you need at the end of the month. All of this will be done without having to work continually to achieve it.

Freedom - There are many different ways that you can experience freedom when you live a life of financial independence, but we will talk about the time factor in this section. Many people are tied to their jobs and it is necessary for them to live that life, regardless of whether they are happy with it or not. Living a life of financial independence means that you don't have to work at any particular job, and your time will be your own. Of course, you may still want to continue working, but it will be a choice at that point, not a necessity.

Stress - One of the biggest problems that many people experience is a difficulty with stress. In fact, the stress that you may be experiencing can be so extreme that it gets to a chronic level. Living a life of financial independence means that you are going to remove many of the factors that lead to stress in the average life. Of course, it is not going to remove all of the stress from your life but the simple fact that you are removing financial problems is going to allow you to live stress-free in that area.

Choices - Most people are limited in the choices that they have available, but that is not going to be the case when you attain a life of financial independence. As a matter of fact, you will find that you have many choices available and that you can direct your life in any area that you wish to direct it. Not only will you experience this benefit when it comes to your financial lifestyle, you also find that it is available in every aspect of your life. You will enjoy what having choices in your life can bring to the table.

Early Retirement - There are many people who are interested in retiring early but their definition of retirement may differ from yours, and they may only be looking at retiring a few years in advance of "retirement age". You will have the opportunity to retire on your own terms when you live a life of financial independence. It is not necessary for you to wait until you are approaching retirement age, nor is it necessary for you to be concerned about what you will do once you reach that age. If you would like to retire on your own terms and to retire when you want to retire, striving for financial independence is the choice you want to make.

Relationships - How much time do you spend working on your personal relationships? Being a part of a family unit or having close friends that can rely on you is one of the most important things in life for many of us. Unfortunately, many of us struggle to maintain the bonds of those relationships on an ongoing basis. Would you like to build quality relationships? Living a life of financial independence will give you the freedom to do so.

Purpose - There tends to be a number of things that are missing in our lives, but you may find that you are missing a sense of purpose. One of the reasons why that may be the case is because you are struggling financially and struggling to maintain your lifestyle, while at the same time, working to promote the lifestyle of others. Living a life of financial freedom gives you the opportunity to get off of the hamster wheel and to develop real purpose in your life. This is a benefit that will not only be experienced after you are financially independent but also something that you will be able to enjoy throughout the process.

These are the primary benefits that you will experience while striving to achieve a life of financial independence. It is also likely that you will have other benefits as well, many of which you had not considered possible in your life. Grab hold of those benefits and make sure that you are enjoying each and every one of them as they become available. It is extremely motivational to do so and can help you to stay the course that leads to financial independence.

3. Is It the Right Time to Start?

Most people would agree that being financially independent is one of the best things that they could do in life. They may strive to achieve the independence that they desire and in doing so, reap the benefits that were discussed in the previous chapter. There may be some reasons, however, which caused people to vacillate in their decision as to whether to reach out for this goal or not. We will take a look at a number of different situations, and why you should not feel as if financial independence is out of your reach.

I Am Too Young to Be Financially Independent

This type of thinking is often propagated by the advertising industry and by those who are living a so-called "normal life". You may have grown up with the overall attitude that it is necessary for you to work hard in your younger years and to obtain everything that you could possibly want in life. Although there is nothing wrong with living comfortably, it is important for you to consider the true meaning of being financially independent. In doing so, you will see that it is not only possible when you're young, it is well worth the effort.

When you are young, you have a number of benefits that may not be available when you are older. These include your energy and the abilities that you have to be employable in almost any field. Using those factors to your advantage can allow you to seek a life of financial independence, and one that will benefit you throughout your lifetime. In fact, going after a life of financial independence from a young age is one of the best things that you can do, because it can put you on the fast track to the independence that you desire.

I'm Too Old for Financial Stability

Many individuals who consider themselves to be older or perhaps those who are reaching retirement age feel as if it is too late for them to begin the process of reaching out for financial independence. This may be because they recognize they have a limited amount of time before they would like to retire, or it may be because they feel as if they have made too many poor financial decisions in their lifetime. Is it too late for you to reach out for financial independence?

It is never too late for you to start on the road to financial independence and you may have benefits available as an older individual that could allow you to do so. First of all, you have the life experience necessary to realize that not everything is bound up in the acquisition of physical products. In addition, you may have a home and you might have been paying on it for years, which gives you an extreme edge when it comes to financial independence.

Although it may be true that you are limited in the amount of time that you have, that only means that you need to adjust your goals and to work on them to the extent possible in order to achieve them. There may be some struggles along the road to financial independence, but it is often something that can be achieved in a short amount of time, if you put your mind to it.

I Have Too Much Debt for Financial Independence

If you struggle with your finances and you find yourself in a considerable amount of debt, you are not without hope. It is important to recognize that there are many "rags to riches" stories of individuals who were so far in debt that they could not see their way out of it and within a short amount of time, they were able to overcome it and to achieve the financial independence that they desired.

Regardless of your current financial situation, there are going to be options that can assist you in achieving your goals. It really requires that you put your best foot forward and work as hard as possible in order to achieve them. You also need to consider the types of goals that you are setting, which is something that will be discussed in detail in a following chapter of this publication. Never feel as if you are too far gone to start on the best road that you can be on.

These are some of the main issues that people face, which makes them feel as if they are unable to achieve any form of financial independence. Although it may be difficult in some instances to live the life that you need, it is certainly not going to be impossible. Regardless of where you are in life now, you can begin to work toward the ultimate goal of removing the financial difficulties from your life. The exact road that is taken may differ from one individual to another, but the end result is going to be the same.

4. Changing Your Mental Outlook

Although there are many things that you can do to prepare for a life of financial freedom, one of the first things that you need to consider is being in the right frame of mind. Obtaining a life of financial independence is certainly difficult, so you need to prepare yourself properly from the start in order to see it through successfully. Many successful people already understand the power of positive thinking, and in this chapter we are going to discuss some of the ways that you can change your mental outlook in order to get underway.

Exercise - Although we are going to discuss it in another part of this publication, one of the most important things that you can do for changing your mental outlook is to exercise. As a matter of fact, it is a good idea for you to incorporate some form of exercise into your morning ritual each and every day. In doing so, it will help you to maintain a positive outlook, even when things get difficult.

Rituals - In the last suggestion, we discussed the need to have exercise in your morning ritual. In this section, it is important to understand the different rituals that you have throughout the day. Your morning ritual is one of the most important that you should consider, because it helps to get your day off on the right foot. In addition, you can have various rituals throughout the day that allow you to maintain a positive outlook consistently.

Reading - Do you take the time to read regularly? One of the most important things that you can do to maintain a positive attitude and to change your mental outlook is to read the right type of material. Try to pick the top books for your needs and to read several of them per month. You will find that it is time well spent, and as you continue to read more and more, you will find that it helps you to keep on track.

Singular - If there is one thing that can ruin your mental outlook and make it very difficult for you to achieve financial independence, it is allowing yourself to be scattered. Many people have this difficulty in the way that they set and achieve their goals, because they tend to go after more than one goal at one time. Although it is a good idea to have both short-term and long-term goals, you should be sure to be focusing on those goals and to only do one at a time.

Stop Procrastinating - One of the most difficult problems that many people face is a problem with procrastination. Although some people look at it as a form of laziness, it is really a matter of human intuition and having a difficulty with getting started on a project that seems monumental. That can be the case when you're trying to achieve financial independence and you may find that the first step is the most difficult one to take. Rest assured that once you begin on the road to financial independence, it is going to be much easier for you to maintain that path.

Simplify - It is vitally important that you simplify your life as much as possible when you're trying to get a grip on your financial situation. If you continue to add complexity to your life, either in the things that you are doing or in the physical items that you are obtaining, it is going to make it difficult for you to stay the course. By simplifying your life along the way, it makes it much easier for you to achieve financial independence and eventually, for you to have the positive cash flow that you need.

These are only a few of the suggestions that can make a difference in your mental outlook. By applying these suggestions on a daily basis, you will see that you are moving forward and in doing so, you will be able to achieve the financial rewards that you desire. It may take some time, but when you put your best foot forward and always look at life with a positive attitude, it makes it much easier for you to get through any difficulties that you may experience along the way.

5. Developing SMART Goals

One of the more important factors of achieving anything in life is to establish the proper goals and to work hard in order to achieve them. Goals have been the cornerstone of many successful individuals, and they continue to be an important part of all of our lives in some way or another. When you are able to establish the proper goals, however, and you understand the way that you can reach them, they can truly take you places that you may have never been before.

Unfortunately, most people look at goals as merely a way to change something temporarily and they rarely ever get the focus that they truly deserve. New Year's resolutions are a good example of this, as most people tend to give up on their goals sometime during January. If you truly want to obtain financial independence and to live a life that is free of the stress of debt, you need to establish the right goals from the start and then follow through.

Part of the process of following through is in understanding the path that is necessary to achieve the end result. Most people look at following through on goals as being a matter of willpower, but willpower often has very little to do with it. Most productivity experts recognize that we have a limited amount of willpower and it is renewed every day. We want to make sure that we are going beyond our willpower when it comes to achieving our goals, and this requires having a clear path and following it. It also means establishing habits and rituals in our lives that will allow us to achieve our goals without having to fight our way toward the finish line on a daily basis.

Although there are many different types of goals that exist, not all of them are going to work to your full advantage. There is one particular goal setting technique, known as SMART goals, that allows you to establish goals that are right for you and make sure that you follow through on them with the end result in mind. SMART is an acronym and by understanding the meaning behind the acronym, you will understand how to set goals that you can rely on.

S: Specific - One of the problems that many people have when setting goals is that they don't make them specific. For example, someone that wants to lose weight may set a New Year's resolution to lose weight during the New Year. That tends to be more of an open-ended resolution, rather than a specific goal. In using the SMART goal setting technique, you would go beyond saying that you wanted to lose weight and you would give it a specific number, such as "I will lose 50 pounds".

When it comes to setting any financial goals, it is likely that you are going to have both short-term and long-term goals in mind. They must also be specific, and you will be able to answer a number of questions by simply establishing your goals specifically. Those questions include what the goal should accomplish, why you want to accomplish it, where it will be accomplished, who is involved in the goal and which requirements are necessary to achieve it. It is also good to be specific about the problems that may occur along the way.

M: Measurable - In a similar way to being specific, you also need to set your goals so that the end result can be measurable. When it comes to establishing financial goals, those factors are usually going to be seen in a financial sense, such as how much money you have in reserve or how many bills you will have when you have achieved your goal.

It is important for you to measure the goal all along the way, and not to simply wait until the end result so that you can see if you have achieved it. When establishing your goals as being something measurable, make sure that you are setting milestones along the way so that you can make sure you are on track. This is a factor that is often overlooked, and it can be very difficult for you to achieve your goals when there is a long time span between the beginning and the end. By establishing milestones along the way, you can focus on the short-term and on the long term.

A: Attainable - The third criteria for setting SMART goals is to be sure they are attainable. In other words, you want to make sure that you are setting goals that you are able to achieve and that are realistic for your purposes. It would do no good if you set goals that were outside of your reach, because if they were that extreme, it would simply be a source of frustration and you would end up giving up somewhere along the line.

In order to set a goal that is attainable, you need to look very carefully at your current situation. For example, it would do no good to say that you were going to pay off $50,000 worth of debt in a year if you are only making $30,000 at your job. It may be a worthy goal to pay off $50,000 worth of debt, but it is not attainable. When you are realistic in setting your goals, it allows you to establish your goals so that you see the clear path to achieving them. It will still be up to you to put forth the effort so that you can get the end result, but you need to consider the reasonableness of the goal as well.

R: Relevant - You should always make sure that your goals are relevant to what you are ultimately trying to achieve. In the case of setting goals to achieve financial freedom, they should support the fact that you are trying to gain that type of independence at some point or another. Although there may be many different types of goals that are worthy of your attention, you should eliminate any that are not relevant to the big picture.

T: Time - Leaving your goals open-ended will likely be a source of frustration at some point or another. It is necessary for you to establish a time in which you will achieve your goal or you may never be able to achieve it, because you can continue to push the end date out into the future indefinitely. When establishing goals, an important factor is to make sure that you have the time established in which your goal will be met. In doing so, it allows you to stay on track along the way and it provides you with the fundamental way to set milestones.

Using the SMART goal setting technique can make it possible for you to achieve things that you may never have thought possible in your life. Setting small goals for the short-term and establishing long-term and perhaps even lifelong goals are an important factor in achieving success with financial freedom.

It is also a good idea for you to write down your goals on a piece of paper, because that helps you to be accountable to the goals that you set. They are not simply abstract ideas that are floating around in your mind, but they are concrete and something that you can count on when they are on paper. After you have set your goals, you should review them on a daily basis and make it part of your morning ritual. By reviewing your goals every day, it makes it easier for you to keep them in mind and to focus on what you are hoping to achieve.

6. Your Budget Is the Cornerstone to Your Freedom

Most families use a budget in order to keep themselves on track financially. In most cases, a budget is a somewhat simplistic sheet of numbers that helps you to compare how much money is being brought into the household and how much is going out. By comparing those two numbers, you get the opportunity for recognizing an expendable income that you have at the end of the month or any deficit that needs to be corrected in some way or another. Although the basic type of budget may work in some instances, it is not typically going to be enough to help you to live a life of financial independence.

In order to establish a budget to be financially independent, you need to dig beneath the surface and to know what is truly happening with your money. Rather than having a basic overview of your finances, you need to be intimately involved with every step of the process and understand how making small changes in your finances can make a large change in your ability to establish and achieve your goals. In this chapter, we are going to discuss some of the factors that can be considered for establishing the right type of budget for you.

Gather All of Your Information

The first step in the process is one that should not be overlooked, and it should be done before you begin to write down any numbers or to do any math. It is very important that you have all of the information necessary for coming up with your budget in front of you, as it will help you to avoid any distractions of looking for information that you may need while you are establishing the budget.

Although the exact paperwork that is necessary is going to differ from one circumstance to another, it is always going to contain information about the money that you bring into the household every month, your bills, your bank statement and any investments that you may have. Anything relating to your financial situation, regardless of whether it is to the negative or positive, should be included in the stack of papers that is in front of you. Keep them as organized as possible so that you can work through your budget without backtracking.

Establish a Basic Budget

The next step in the process is to establish a basic budget, which is essentially two columns that allow you to see if you have any expendable income at the end of the month. It is a relatively simplistic type of budget, but it is important to go over it in detail so that you are not missing anything along the way.

Add up all of the numbers that would make up your monthly income, regardless of where they come from. Make sure that you include any incidental income that may find its way into the household on a periodic basis. It may be necessary for you to extrapolate the numbers from existing data, but you should be as close to the actual number as possible. Include the information in the first column on the spreadsheet.

The second column of your spreadsheet should include information about all expenditures that you have on a monthly basis. Any type of regular bills will be included in this column, as well information about entertainment costs, incidentals, groceries and anything else that you may regularly spend. It may be necessary for you to track this information for some time in order to get an accurate figure, but it is important for you to be as accurate as possible.

The final step in the process is to subtract your expenditures from your income. If you end up with a positive number, you have some expendable income at the end of the month and it can be worked into your overall budget to get rid of your bills and to achieve financial independence. If you have a negative number, it means that you are going into debt every month and you will need to make some changes in either your income or your debts so that you have some positive cash flow at the end of the month.

Take a Close Look at Your Bills

It is now time to look into your budget to see what can be done to reduce your debt and to bring you one step closer to a life of financial independence. One debt that is often a difficulty for many families is credit cards. Credit card bills can quickly mount up and can ruin your budget, making it very difficult for you to see any positive movement in your cash flow. There may also be other debts that can be reduced, but it is typically best for you to focus on credit cards first.

Reducing your credit card expenses is one of the most important things that you can do to reduce your debt. It will typically require that you go through the credit cards in a systematic manner to determine which is the highest interest rate, which one is costing you the most money and which can be reduced the quickest. You should then focus on one credit card, keeping a singular mindset and paying as much as possible on that one card until it is paid off. After you pay off a card, all of the money that you are paying on the card will be applied to the next one in line and you will continue through this process until all the cards are paid down to zero.

Don't Forget to Pay Yourself

Another important factor for your budget is to make sure that you are paying yourself regularly. This is often something that is overlooked by most families, simply because they are living so close to the breakeven line. It doesn't matter if you're only paying yourself $10 a week, make sure that you are putting it off to the side and allowing it to accumulate. It can help you to overcome any problems that you may experience financially and it gives you a little bit of a cushion to live from one month of the next.

There is an old saying that you should pay yourself first, and this is something that you should develop in your mindset when you are trying to live a life of financial independence. Although it is going to be necessary for you to pay all of your bills, paying yourself first allows you to establish your positive cash flow and to do so on a continual basis, rather than allowing it to simply go to chance.

Having a budget is the factor that will allow you to live a life that is free of debt. It will also help you to keep up on your bills and to reduce them to the greatest extent possible. Although having a budget is not going to allow you to live a life of financial independence in and of itself, it is one step that can allow you to get closer to it and it is certainly a goal that is worthy of setting.

After you have your budget set, stick to it as closely as possible. Review the information from time to time to make sure that it is still accurate and that you are seeing positive movement in your overall numbers. At that point, you can begin working on your income to ensure that you have enough coming in every month through your investments or through recurring income from your business to ensure that it is not necessary for you to work every day to pay your bills. At that point you will be financially independent, and that is something that you will enjoy as long as you maintain it.

7. Going from Financial Problems to Financial Freedom

Although most people would consider trying for financial independence when they already have established some type of financial stability, it is not always necessary. Even if you are struggling to live from one paycheck to the next and you find that you are broke more often than not, it is still possible for you to work forward and to achieve a goal of financial stability and independence. In this chapter, we are going to talk about some of the factors that will allow you to work your way in the right direction and to become the next rags to riches story.

As was discussed previously in this publication, you need to establish the proper mindset if you want to get out of extreme poverty and achieve a life of financial independence. If you constantly have a negative attitude, it is unlikely that you are going to achieve anything, because you typically follow where your mind leads you. If necessary, give yourself positive affirmations every day, telling yourself that you are going to achieve everything that you wish to achieve and allowing yourself to feel positive about your situation. From that point, you can begin moving forward rather than remaining stagnant.

The goals that you set are also going to be different from what might be established by somebody who is already financially stable. Some of your first goals are going to be about getting out of financial debt or out of your current situation and enjoying some relief from the struggles that you are now facing. Just because your goals are different from somebody whose situation is different does not mean that you should establish them differently. Review the information on developing SMART goals and make sure that you are establishing some short-term goals that will allow you to move forward.

When Little Things Mean a Lot

In any type of successful budget, attention needs to be placed on details to ensure that you are moving forward and are not ignoring any part of the budget that could hinder your progress. When you're coming from poverty and financial difficulties, it is important for you to track every single penny that comes into your pocket and leaves your hand. In doing so, it can help you to establish a foundation for your financial future.

Most people are going to have at least a little bit of money in their pocket, even if they feel that they are regularly broke. You will typically spend this money at the vending machine at work or perhaps at the drive-up window, trying to purchase an inexpensive meal for lunch. It may not seem like much if you are spending a dollar here and there, but it can really add up if you're not careful. In addition, a dollar is a lot of money when you are broke, so spending a quarter at the grocery store rather than a dollar on a bag of potato chips at the vending machine is a choice that you should make. Start your budget small and work your way upward.

By tracking every penny that you have and spend, it allows you to generate some positive cash flow at the end of the month. That cash flow may only add up to a few dollars but it is those few dollars that is going to start you on the road to financial independence. Some of the money should be set aside in case of an emergency but the rest of it should go to pay down the debt that would allow you to have more positive cash flow at the end of the month.

It can take some time for you to get out of a case of extreme poverty and it may take a lot of work and effort on your part to achieve your goals. Rest assured, however, that it is going to be possible and, provided you work on it, you will achieve it. In addition, you will find that moving ahead on a regular basis will provide you with the motivation that you need to continue going. It will not be long after you start that you will begin to see the positive forward movement that is necessary and you will find that it is easier, with each step that you take.

8. Save or Invest? Which Is the Best?

By this point in the publication, you probably already recognize that it is possible to increase your cash flow at the end of the month. We have discussed a number of ways that you could do so, which included adjusting your bills and establishing your budget. After you have a positive cash flow, you will likely be faced with the decision as to what you should do with the money that you have available. Although there are a number of options, it often comes down to either saving the money or investing it.

First of all, it is important to understand that everybody is going to have his or her own unique financial situation. Not each person is going to be looking at positive cash flow in the same way and there are also going to be personal decisions that need to be made, and they will be made by you. In this chapter, we are not trying to provide you with a strict answer as to which you should do, but we are trying to give you some guidance so that the basics are covered and you will be able to do the financial planning necessary to move forward with your goals.

Most people are familiar with saving money, even if they have not actively saved money from their own budget on a regular basis. In essence, the money that you are saving is being put off to the side and you will have it available in case of an emergency or to move forward in your quest for financial independence. It is always a good idea for you to have some savings available, and there are number of ways for you to save money that can help to move you forward in this regard.

Investing, on the other hand, is something that may be a bit foreign to us if we have never done it before. When most of us think about investing, we think about putting our money in the stock market but that is only really one of the many options that you have available. Anything that you do with your money that would give you the opportunity to allow it to grow without additional work on your part is an investment. You can invest in various types of savings accounts, for example, or you may try purchasing property as an investment. In addition, you can invest in yourself and start a business.

The Importance of Saving Money

Although it is a good idea to compare investing and saving, it is important to understand that there is always a benefit when you are able to save some money. It doesn't matter if you are saving it in a bank account or if you are putting it in a cardboard box at your home, having some money set off to the side in case of an emergency is never a bad option. Of course, the amount of money that you save may differ from one situation to the next but it is always a good idea to have an emergency fund in case of some unexpected expenses or if your finances may change temporarily.

The Importance of Investing Money

In order to achieve true financial independence, you need to have a source of income that does not require you to work for all of the money that you have coming into your household. One of the only ways for you to achieve that goal is to invest some money at some point or another. As was stated earlier, the investment can be in an outside source, such as property or the stock market but you can also invest in yourself by starting a business that would give you recurring income that would allow you to be financially independent.

It is also important to consider your goals when doing any type of investing. If you are still trying to achieve a financially independent lifestyle and to reduce your debt, you may be able to use some of your positive cash flow to move things along more quickly. It is also important for you to consider any long-term goals that you may have in place when financing as well, such as retirement or perhaps moving to a different location.

Although it is a good idea for you to invest some of your positive cash flow, it is also important for you to consider the dangers that may be involved in it. There is never a sure thing, and you may end up losing your investment if there is a shift in the marketplace or if you simply make a mistake in where you invest your money. Always keep in mind the axiom that you should never invest more money than you're willing to lose. Of course, you would hope to not lose your money in the investment but make sure that it doesn't hurt you and your forward progress if you do so.

9. Why Cash Is King and Credit Is Queen

There's an old saying that cash is king, and it certainly is something to keep in mind when you are striving for a life that is financially independent. In many instances, you will find that you are using cash, and in other cases you would've been spending money on credit cards or perhaps using other means to obtain the things that you need. Of course, it is unrealistic to think that anyone would live entirely on cash, and unless you want to be considered eccentric, there are going to be other financial factors that are necessary.

As the title of this chapter indicates, it is important to consider the importance of money and how cash can affect your ability to remain independent financially. For example, it is always a good idea to have some cash available on hand, and there is a sense of security that is available when you do so. In addition, paying for something in cash is always going to be a benefit, but it certainly is not the only option that you have available. You also need to consider the importance of credit and how it can actually have a positive impact on your financially independent life.

One of the reasons why using credit can help you financially is because of some of the benefits that credit cards have to offer. For example, there are many cards that offer rewards that can either put a certain percentage back in your pocket or perhaps even provide you with points that can be traded for physical items or for travel. If you use this type of a credit card, you will find that it is a very easy way for you to accumulate those extra items.

In addition, not everybody who is financially independent is going to be debt free. Quite simply, debt is something that many of us carry and there are reasons why you would legitimately want to carry debt, even if it was only on a temporary basis. It could include purchasing a home, as not everybody is going to be able to simply put the money up for a mortgage without having to have a monthly payment. That type of debt is often necessary, and it is one that can play into your financial independence as well.

Of course, if you are going to be using any type of credit card for regular payments, you want to be able to take advantage of the benefits of doing so without having to be penalized in the process. Rather than carrying money from month-to-month on the credit card, which will quickly eat up your benefits through interest and other charges, it is important to pay them off every month. Keeping your credit cards with zero balance is a very important part of financial independence, and it is something that you will learn early on in your efforts to become independent.

Obviously, credit is going to play a part in your life in some way or another. It doesn't matter if you are using credit in order to get the rewards or if you are carrying some debt and the credit in order to do so, is something that can be of benefit to you and your family.

10. Increasing Your Perceived Worth

Throughout the pages of this publication, we have discussed many factors that would allow you to gain control over your finances and to do so with the view to being financially independent. Although it certainly is a good idea for you to have control over those factors, it is only one aspect of financial independence. You also need to consider the money that is coming into the household every month and to ensure that you are receiving the money without having to work for it month after month. That is the epitome of financial independence, and it is something that needs to be checked into carefully.

Most of the families that are financially independent either get their money through a variety of investments on the outside or because they have invested in themselves and operate the right type of business. If you are able to build a business that allows you to become financially independent, you want to make sure that you are getting paid what you're actually worth. This is a trap for many individuals, because they either underestimate what they are worth or they don't allow people to feel as if they are worth more.

It is not only important for you to charge what you are worth, it is also important to increase your worth by increasing the perception of what you are worth. It may seem odd to put it in that way, but it is largely true. By simply changing people's perception of you, what you do and what you can do for them, it can really make a difference in the amount of money that you are bringing into your household without actually having to increase the amount of time that you are spending on the project.

One of the ways that you can increase your perceived worth is by becoming an expert in your field. Many people are able to run a successful business, and they do so while providing value to their customers. If you take it to the next level, however, and truly become an expert in your field, it is going to make you worth more, simply because your perceived value has increased. You will likely still be doing the same job but you will simply be getting paid more in order to do it.

There are also many other ways that you can go about increasing your perceived worth and in making more for what you do. It may require rebranding yourself as an expert in the field or perhaps giving additional proof of the fact that you can care for the needs of others in some way or another. Scarcity is another factor that can really make a difference in your perceived worth as well. By making these small changes, you can make a large change in your overall wealth because people will pay more for you and what you have to offer.

11. Improve Your Health and Build Wealth

Although there are many things that can be considered for improving your wealth and achieving a life of financial independence, one that is often overlooked is improving your overall health. As we will discuss in this chapter, improving your health can have a positive impact on your finances, not only now but for the long term. Here are a few factors that you should keep in mind and how to begin improving your health so that you can improve everything in your life at the same time.

First of all, healthier people are going to attract abundance in some way or another. For example, if you are healthy, it is more likely for others to follow you and even to contribute to what you are offering. Because of your physical improvements, it will make a difference in your business and in your finances. In addition, you will likely feel better on the inside as you improve your health, and your level of confidence will also have a positive impact on your financial situation.

One other factor that should be considered in improving your health is the fact that it will improve your level of energy. Most people are naturally attracted to individuals who are energetic and who have something to offer in that way. If you do not exercise and you tend to be lackluster or lethargic, it is actually going to repel people in many cases. By building up your energy levels, you can build up your wealth, and over the course of time it becomes easier for you to seek financial independence.

How to Get Healthy and Wealthy

If you're trying to improve your health in order to improve your financial standing, there are a number of things that need to be considered. By achieving your improvement in health in the right way, it will make a bigger difference in the overall benefits that you experience.

First of all, you need to establish the time that you will exercise and the best opportunity that you have for improving yourself is to exercise in the morning. In fact, many successful people do their exercise when they first wake up in the morning. It is not done to get it out of the way, it is done because of the benefits it provides for the human body and mind, benefits that are experienced throughout the entire day.

When you exercise, it releases endorphins, which are chemicals that can make you feel good. In addition, exercising first thing in the morning can boost your energy levels and can keep them at a high level throughout the entire day. Although there is going to be a dip at some point or another in your energy, you can even schedule a second exercise session that will just help to give you a boost and keep you going for the rest of the day.

The Importance of Eating Right

In order to improve your health, it is not only important for you to get some exercise, it is also important for you to eat properly. Unfortunately, many of us tend to eat sugary foods and a simple carbohydrate diet that leaves us struggling to get through the day. If you find that you need a nap every day or that you are lethargic and simply don't have the energy to go on at some point during the day, your diet may be behind it.

There are many different types of diets that you can do in order to maintain your health and to improve your ability to get things done. Some people opt for a low carbohydrate diet, which is something that has been shown to have many benefits for your body and mind. A high starch, wheat free diet may also be something that you want to consider, as it can help you to maintain a proper weight and to keep your blood sugar stable. Even simply cutting out wheat and sugar from your diet is going to have long-term benefits.

Something else that you may want to consider, although it is often considered to be extreme, is fasting. I’m not talking about denying yourself food for extended amounts of time; I’m talking about the practice of intermittent fasting, which would have you going without food for up to 24 hours at a time. You only need to do it a few days a week but you would be surprised with the difference that makes in your mental outlook and your physique.

By exercising regularly and eating a healthy diet, you are really providing your body with what it needs. Not only will it help you to improve your health and to live a healthier and happier life, it can also assist you in doing what is necessary to improve your financial status and to live a life that is financially independent. Don't overlook the importance of your health when it comes to your finances, it is a factor that should not be ignored.