Financial Independence - start now

Start on the road to financial independence. It's never too late. Simply understand what it is and start applying some frugal living principles to everyday activities and decision-making.

If your financial skills aren’t great, then you might be in a financial boat that is slowly sinking.

If so, you might agree that it's important to plug your leaks and start bailing.

Any effort at any time will pay off in rewards.

When we find ourselves in the poor financial shape, it's most likely due to waiting or delaying or turning a blind eye toward things. Now would a good time to stop that.

Also, let's remember that financial independence can mean different things to many of us. I see it as somewhat of a progressive thing that isn't a single condition or situation that one achieves.

I define it as:

• The opposite of financial dependence - you're supporting yourself through your own skills and initiative in the marketplace.

• An ability to successfully manage your personal financial matters on your own.

• Maintaining cash reserves that can be used to respond to unforeseen events.

• Having sufficient financial resources to allow yourself some flexibility in terms of changing jobs, taking time off work, and living a bit instead of working all the time.

• Becoming debt free or having considerably more assets than liabilities.

• Ultimately, counting only on yourself for income, through investments and enterprises of your own creation.

How you define it is really up to you, but as a minimum, financial independence means you're taking care of yourself when it comes to personal finances.

I see a balancing act in all of this. When we are young, we probably don’t know how to save money in a big way because we don’t have much income to save. We need most of it just to get by. When we are older we have more income but also more interests and expenses.

The trick is to walk down the middle of the road and be good at saving money and managing that resource, no matter how small that regular savings might be. At the same time, balance that savings habit with limiting our interests and desires for things that drain our wealth.

Following that approach, we're "in the black" instead bleeding red ink all over the place. Being on the plus side is a great place to be.

Done with Financial Independence, back to Mindset of Frugality