Your 10 Steps to financial independence.

Many people will struggle through life wishing for a windfall, or some starstruck event that will change their lives. The very, very lucky ones might get their dream come true, but most will always be dreaming. A few will decide to do something positive about it, and you could be one of them. Ultimately money is something you have to get right, as it will affect many of the choices you make in life.

1. You need to decide to be financially successful.
Strangely, most people don’t think in terms of building real wealth. They feel that it’s enough if they manage their money carefully, buy their own home and continue in a secure job. And it’s a sobering fact that most people spend more time planning their summer holiday than they spend on building real wealth. It comes down to a matter of personality...either you want to become wealthy or you are happy with the status quo. Make the decision to change and believe that you can become substantially wealthier than you are now.  

2. Take time to study and understand.
In the same way that you could not speak French until you were taught, teach yourself how to invest! Even now it is only the most enlightened education establishments that offer any financial or investment tuition. It was Einstein who observed that if you study anything for 15 minutes per day you would soon become competent and even expert. The Successful Personal Investing Course has been leading in investment education for over 20 years.

3. Take control of your spending
For some of us, most of at some stage of our lives, spending money because we can is a way of life. Thinking about what it can do for you otherwise does not necessarily come to the fore. I have watched money erode in fast cars and fine wines, but there is often more pleasure in seeing the money grow.

4. Create specific objectives.
Set some goals that you can reasonably achieve. Make them just beyond comfortable, so that you have to work a little for them. For example, putting aside £x per month, or being overdraft free within so many months.

5. Budget
Set up a budget. It is very easy to do. Plan to keep you and your family happy and comfortable, and remove any temptations. But also plan to reward yourself for staying on target. You want to be in control, not frugal. And I have even set one up for you, download it here!

6. Reduce your outgoings
After you’ve put the budget in place, stick to it. Reducing miscellaneous spending will provide the fund that could start your fortune. You have to control your money, and not let it control you.

7. Time to start investing
What I mean here is invest, not gamble. There are many examples of children sticking a pin in the share pages and coming up with portfolios that outperform the experts. But why leave it to chance? When you understand all of the investing opportunities then you can decide what is best, and what is best for you and your circumstances. Grow rich slowly, but surely. Even a simple plan to put away say £50 per month may grow to £250k over 40 years.

8. Build your asset base
Tangible assets. What exactly are they? Property for one, and any of the myriad of financial instruments starting with shares. Why buy these assets? Because they do two things. They can appreciate in worth, and you can earn from them whilst you own them. That said, they can depreciate too, but at least you can protect against that.

9. Get Tax smart
Being aware of what you do and don’t have to pay in tax is not restricted to the rich and wealthy. Tax awareness is an important part of your strategy to become wealthier yourself. And don’t be mislead that being tax efficient is in any way illegal or immoral. Pay your just share is fine, paying what you don’t have to is foolish.

10. Be smarter with your accumulating wealth.
Who knows quite how many ways there are to be parted from it, they say though that it happens easily. Plan to either replace income, or reduce long term debt, and put a little to that charity you always admired. Once you have it, the choices you make are happy ones!