Financial independence is the dream by almost all working class people around the globe. The term ‘Financial Independence’ refers to a stage when you are out of the worries to pay off your utility bills or bear the living expenses for the rest of your life. This is the time when you don’t need to work for money, instead, your money works for you.

Achieving such a stage can be called the real success of life. Most of the times, the working class people take their income as their wealth. But this is a misconception. We work five days-sometimes six days a week– just to earn enough to spend during the month. If you live your life in the same way, the day not so far when you will be retired from your job with a minimum to no savings left to live your life after retirement.

Most of the times people earn and save to fulfill life goals like buying a home, children’s higher studies, foreign tour etc. While chasing those dreams, many a time we overlook the goal of being financially independent. When we are left with enough funds to live our life after fulfilling those goals, we can call it a financial freedom.

A smart approach to achieve financial independence is to start working towards your goal early. Here are some simple yet effective steps which can help you achieve financial freedom much ahead of the retirement.

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# Step No 1

Live Within Your Means

A reckless spending habit is the worst enemy of a good money management. When you start spending money more than you should, it is certain that you will be in crises of money at the last few days of every month.  A person who is shopaholic can never save money. If you desire to live a life which is free from the financial woes then you are to control the bug inside you which instincts you to keep on spending.

# Step No 2

Beware of Bad Debts

Many people claim that having a debt is the new normal. Yes, it is true that having a debt is normal but the debt which you own must be a good debt. When you avail a debt to own something necessary or to buy an appreciating asset, it is called a good debt. An education loan or a home loan are the best examples of a good debt. On another hand, the credits we take to fulfill our wants like an advanced television, an expensive car, for shopping etc should be avoided at any point.

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# Step No 3

Make a Realistic Budget

At the beginning of every month, most of us determine to manage our money well during the month. But most of the times we fail to manage our money because we are lacking in making a realistic monthly budget. If you really want to stick to your budget, you are to make your monthly budget in a way which can actually be followed in our daily lives. Once we are ready with our budget, we are to determine to stick to it at any cost.

# Step No 4


The saving money or sticking to budget won’t help you to reach your destination until and unless you invest. The right investment is the tool which will make your money work for you in the future. The right investment portfolio is a mixture of SIP, debt fund, and equity fund. This is undeniable that investment comes with risk. Some investments have a high-risk profile while some others are not. One must invest in both types of investments to gain maximum profit with less risk of capital loss. It is better to take expert advice while making your investments.

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# Step No 5

Buy Appreciating Assets

The assets which we own can be of two kinds, an appreciating asset and a depreciating asset. An appreciating asset is a kind of asset which increases its value with the passing time. Some examples of appreciating asset are- home, property, land, antiques, artworks etc. When we aim to become financially independent, it is better to invest in those assets which can give us a good return if you liquefy those assets in the future.

# Step No 6

Plan for Your Goal

The financial freedom is undeniably the ultimate goal is any working class person. But it is not the only financial goal which we have. Beside this dream, we may dream to achieve other milestones too. Whatever you may dream to achieve in your life, you are to plan for it. One must have a goal which is specific, achievable and time-bound. When you plan your life goals in such a way, your financial life will be like a ladder which you will keep on going ahead with the passing time and one day you will be at the top which we call the financial freedom.

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# Step No 7

Start Early

All the six above mentioned steps can give its best result if you start following those steps early. As early as you can start, you will gain your destination sooner. A decade of skillful investment as well as good money management can make you live a life free from financial woes. If you can gain financial freedom early, you will get more time to live a life which is beyond the invisible chains of 9 am to 5 pm.