Gaining your own financial independence is not a big deal at all. It requires a lot of hard work and time but the process is still very simple. Financial independence can come if you make simple planning and follow it. All books on financial independence can be checked in this basic equation. Thus, while discussing the finance equation, it is an equation that is very easy. It is an addition equation. Just like 1 + 1 = 2, so does this powerful and simple equation will add up to your financial independence.
So, what is finance equation exactly? Be prepared as your life will change complete once you allow yourself to understand the simplicity of this equation. Here goes the equation:
Smart Decisions + Good Math = Financial Independence
Break it down and have a close look at it. First comes the Smart Decisions followed by the Good Math.
Smart Decisions
Attend the college – You will have to get proper education and complete your graduation degree. Most people who make an income of $100,000-$150,000 in a year are the college graduates. The actual fact is that most people who get good jobs and careers are the ones who attain proper education. This is considered to be the surest way to a long-term large income.
Get proper training – It is very important that you obtain proper training in your particular field. Only the ones who get the best training will be able to get promotions in job. Take up a course by yourself even if your company doesn’t pay for it because they’ll pay you in the long run when you’ll serve your company in a better way.
Good Math
Spend less than what you earn – Many people maintain their life in such a way that they spend more than what they actually earn. This will destroy their chance to lead a long-term financially independent life. You should try to append less than what you earn. There are two things that you can do in order to make this good math work for you. You can increase your income by taking up some part-time job during your leisure time. This will improve your spending capacity. Or, you decrease your spending by sacrificing most of your choices. Make sure you do any of these to achieve long-term financial independence.
Thus, by following the finance equation properly, you can lead a financially independent life.
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