GAINING FINANCIAL INDEPENDENCE

GAINING FINANCIAL INDEPENDENCEBy:          Adu Samuel James.

In today’s world that we are in, it has be observed that many particularly the ambitious young people of the 21^st century are seriously in the quest to be financially freedom. As a matter of fact, every one want freedom from want I called “Financial Slavery”. If every one were to be me, their propensity to gain financial independence and never to repeat the circle of poverty in their family would have become their major concern right from their juvenile. 

Candidly, my journey as a child to adult hood can only be described as the “struggle for survival”. But since the day I realize that I can actually change the status quo in my family, my story has changed. But first from the way and manner I think and my perspective toward life. It all started from the day I proposed to do some serious appraisal of my life, and the humble background that I came from. Indeed humble that eating three-square meal a day at that time was just infeasible. Then my dreams and aspiration look shattered, my hope, expectations and desire seems all gone never to return. But thank God I now know better the working and the tricks of life.

I realize that there is no particular difference between me (the son of a proper pauper) and the other young person (the son of the rich parent). It was now done on me that getting what I want from life can be difficult essentially when getting what I really want out of life can be so impossible. This was to genesis of my financial autonomy from long time slavery from poverty, lack and shortage. I got to discover that the ample gap between the rich and the poor is not the amount of money in their pocket or the availability of time at their disposal but their ability to think and leverage their wealth, and most significantly manage their time and grab opportunities when it pass by.

 While the poor spend their money on liabilities, the rich invest their money on acquiring assets. And so on the long run analysis, the difference in their savings, investment and consumption function widens. The poor work for money while the rich make their money work for them. This is not a joke! The poor and the middle class work so hard in the quest to escape from hard life but the rich simply network and work a litter smarter. They engage in what I tag “leveraging”. While the rich people sweat mentally to make more money and acquire more wealth, the poor and the middle class work tirelessly until they sweet physically to make a token at the end of a month. Yet, their monthly pay package is never enough. To me this is financial suicide!

Financial independence I believe is the ability to be financially self sufficient without necessarily relying on any third party (family, friends or loved ones) for any financial or material support whatsoever on whatsoever plan you want to accomplish in life. Financial independence is you having enough money even after you are not working again or even if you are still doing a paid job. It gives you opportunity to gain control over your spending and your time over a particular period. People who are not financially free are subject to living the life of a rat race.

Financial freedom is not a day experience neither is it overnight; it is a poco a poco process that amass progressively. To be financially free, it all begins with you and what you actually want out of life. But life as it is designed to be will not give you want you desire of it but what you demand or negotiate. To not know what you want is to accept anything that life pose at you. Life is beautiful with money in your pocket and the things money can buy. But frankly speaking, a man without money is to wake up every morning to find himself mourning.

To be financially free, the following subsequent sub-headlines will help you. But they won’t work for you if you are not committed regardless to make it work.

Start with a desire and make a decision.

Desire is powerful. It is the drive that drives us to our desired destination. Your decision to be financially free is motivated by your desire. What you desire to get you will eventually acquire if it is well pursued with great commitment to succeed. Really, the rich doesn’t just wake up one night to realize that they are millionaires. As a matter of fact, according to statistics, over eighty percent of self-made millionaires in America began with nothing or in many cases, less than nothing. As some point, they has to desire and decide to be wealthy. You need to tell your self, “I can never be dependent on any body for my continuous survival” and then you start working towards the actualization of that decision.

Work, work, work.

“He becometh poor that dealeth with a slack hand” says the Holy book. Even Animals work! Go to the Ant thou sluggard, consider her ways and be wise…”

Until you work it out, it cannot work out. To be financially free, you need to work hard, work smart, and network. Don’t just be a talker, be a worker. Let Heaven knows you are not lazy, you know what you are doing and where you are headed. 

Apply for that vacant post, start that business, volunteer for holiday jobs. Just make sure you are doing something that will bring money into your pocket. If you sit down at home complaining all day long, you may become a slave of money all your life. So, leave your comfort zone and go out to work. Remember, as Kunle Soriyan puts it, “Sincerity is not a factor of production; responsibility is the name of the game”.

Save and Invest for the future.

“The fear of poverty and financial frustration is the beginning of savings, prudent spending and wise investment”.                                                                                                                Samuel Adu 

Make savings and investment your topmost priority. Sincerely, savings alone saves one in the times and season of liquidation. When you save money, your savings function increases more than a proportionate increase in your consumption function. This is an economics theory we were thought in school in those days.

You should have at the back of your mind that there will come a time “t” that you will be financially broke. At this time the monies you have saved can save you from entering debt. Investment gives you opportunity to store up your assets in illiquid form. As a matter of fact, if you are an addicted saver or and investor like me, you will be free from financial slavery in the long run. Try by savings at least one-tenth of your income every month. You will be wowed at how well you would have accumulated wealth in the process.

Live within your Income.

Many accumulate debt trying to purchase what is humanly beyond there present purchasing power. This is what most Nigerians do; trying to compete with the Jones and Joneses (relatives) and even surpass them. This is what an economist, James Dusembury, called the relative income hypothesis. One of the pathways to failure in life and career is trying to impress others at the detriment of your social life and well being.

Leadership expert, John Maxwell said, “The only key to failure is trying to please others.” No one can please people; we can only work to please our creator. Leave within your income profit/margin. Purchase the accessories you can afford at the moment and cut expenses on luxuries. This principle will help you to cut a lot of expenses and make you have enough as reservoir. By this you can be financially free owing nobody. 

Pay off debt and overdrafts if any.

If you are currently in debt or you have overdrafts in your bank accounts, you are in prison. Debtors are prisoners; they are slaves to their lenders. If you ever desire to be financially free, you got to empty your debt profile, hence, you will only be working to pay debts all your life. This is not my prayer for you; however, you need to take that life decision never to borrow money again. 

It is better to experience temporary shortage than to accumulate debt all in the name of trying to show the world that you have arrived. Or trying to impress others to make them feel important than you. You have to learn how to actually delay instant gratifications which is the more reason why some are poor today. Learn to apply the opportunity cost principle to everything you do, it will go along way in helping you to maximize you life a lot more. This is what financial independence is a lot about.

To be continued….

I wish you all the best.

Regards.