Being independently wealthy is a hope for everybody to achieve
Although not everyone can reach it but at least they try their best
At least you need to be disciplined, knowledgeable and motivated as an initial step on your way to become independently wealthy
Instead of following your society blindly you build your own financial personality
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That's why I decided to discuss in this post how to become independently wealthy
What is meant by being independently wealthy?
Independently wealthy means you have enough income to pay all your bills and expenses without relying on others
The term is ambiguous to a lot of people as what is enough for you is different for someone else
You can't make all spending common between households
Simply my mortgage or rent is different than yours and same thing applies to spending on needs and wants
To become independently wealthy you have to think about ways to grow your leftover of your income in other words to invest in something profitable
How to become independently wealthy?
The below suggestions are guidelines for you
Again without your self control and motivation they will become useless
You won't see anybody telling you something different than what I say
Add more to your income
When it comes to adding more money to your income I have to be very cautious
If I tell you to work an extra job then I am lying to you
Everybody needs a balance between work, social life and family
I know someone who worked all the weekends including statutory holiday for 3 years to pay all his debt
What you can do is to work on yourself to get promoted
You work the same number of hours but get paid higher
Spend less and save more
One of the key to be independently wealthy is to spend less than before
Even if your income can easily pay all your expenses plus bills
I had a post on how to stop spending money I recommend you to read it
Invest wisely when you get the opportunity
If you have the money you can save, do you know where to invest them?
I know it is hard as we have no clue what are the best stocks or mutual funds
That's why it is better to use mobile apps like
What these apps will do they will deduct the remaining change in any purchases you make to your credit cards according to your settings
Then it will invest this money in the best stocks managed by financial experts
Know your difference between needs and wants
One of the key to be independently wealthy is to know your needs and wants
Once you know that you focus on your needs and carefully check your wants
Your needs are all the essential thing to keep your shelter, food and transportation
While your wants are any luxurious things you buy for yourself and for others
Think about your retirement plan
It is very sad to hear stories of employees who start thinking about retirement plan after the age of 40s
Remember any saving you make to your retirement plan grow using compound interest over time
So time is a great factor, the early you start the more your money will grow
Invest in real state
Investing in real state is the key to be independently wealthy
In Canada, Ontario specifically where I live my townhouse is worth $1.1 million
While it was $280,000 10 years ago
That's why even if market crashes during recession times later on market will correct itself and house prices will restore itself again
Be an entrepreneur
There are so many jobs if you work in them then you can open a business
For example, if you are an accountant or web developer you can act as an entrepreneur
It may be hard but you don't have to turn your business as the main source of income
You can have your business on the side while working as an employee
Educate yourself about financial knowledge
Educating yourself about financial knowledge is not hard
This is the key to being independently wealthy
Also it is possible to learn all financial terms in short period of time
Just check my post about financial for beginners to learn the basics
Your internet is your best friend here
Get rid of your debt
I have written before many posts on how to get rid of your debt
No matter what you do towards increasing your income
If you don't kill you debt it will accumulate drastically with the compound interest
Are you independently wealthy and why you should become one?
It is hard to know right away if you are independently wealthy or not?
You have to evaluate your assets and see if your savings are enough to cover your expenses for the next at least 6 months
If you can then you can call yourself independently wealthy
Without any doubt being wealthy independent can lead to
More freedom
Nothing can beat the feeling of living life according to your term
I know we all need to work and wait till retirement to enjoy life
But if you work part time with enough income that would be considered freedom
More control
If you are free this means you have more control on your life
Less stress
Top reason to be financially independent is to reduce stress and enjoy good night sleep
Difference Between Financial Independence and Being Independent Wealthy
Financial independence and being independently wealthy are similar in terms of what you will experience to money issues especially related to paying your expenses and bills
But they differ in terms of timing, financial independence is the right term when you are retired
While the later term is related to being retired
If you're out of your parents and you are able to pay all your bills and cover your expenses then you can call yourself independently wealthy
Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.