I love this post from The Simple Dollar finance blog, Financial Independence Through Self-Sufficiency. The author defines this as “a state in which I no longer have to actively work for money and my savings and investments cover all of my needs and reasonable wants for the long-term future.” I consistently read these type of blogs/posts from a variety of sources because they serve as constant reminders (a good thing) to keep you on track.
The article list 13 tips but I grouped 4 of my favorites into 2 category. I also included a very simple evaluation on how I think I measure up:
Living: Live in a Strategic Location and Live in a Smaller Space. The simple act of owning an automobile is an incredible money sink. The cost of fuel, maintenance, parking, insurance, registration, tolls, and tickets adds up incredibly quickly. With respect to your home size: First, the direct financial cost of maintenance, insurance, and taxes are substantially lower than a larger home. Second, a smaller home means that you have to be more selective with your possessions. This makes it easier to move and much more likely to focus on experiences and less on the accumulation of stuff. Third, including small homes in your search for a place to live opens up many more options for living. checkandcheck
Health: Establish a Daily Exercise Routine and Eat a Healthier Diet. There are a lot of studies out there that demonstrate a major reduction in health care costs for people who exercise daily or get in 10,000 steps per day. You don’t have to go out there and kill yourself – just get your blood flowing a little bit. Similarly, you can reduce your long-term health care expenses by eating a better diet. sometimes a check, most times not. problem = consistency
The article concludes: Find what works for you. Throw out the steps that don’t work and commit to the ones that make sense. At the end of the day, we’re all finding our own path toward financial independence.
The good news? When you make your own money, you get to make your own rules! You are the leader of your own financial journey!