Independently Wealthy – How to Do That With 2023 Guide

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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independently wealthy

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 Acorns and Stash in US and Wealth Simple in Canada

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.