Seven Ways to be financially independent

What is financial independence? Financial independence is the capability to choose & support yourself through your own endeavors. There's 7 ways or habits for you to follow to gain financial independence. With the right attitude & the proper objective in mind, you might find yourself beaming with pride because of your achievement.

If you answered mostly yes, then you are in danger of being financially unstable. You cannot afford the things you require & sometimes, even the things you require. Don’t go sulking out there! You better move your body. If such is the case, better tell yourself that you cannot afford to be that way always. You must be financially independent.

1. Keep a focused vision


Start with a vision. What is your vision for your life? Where are you definitely heading? You require financial independence. You require to be able to stand on your own & have a more stable & secured life, for yourself & for your relatives.

Keep that vision in mind. Hold on to it as you start to realize that vision. The choices & decisions you will make in the future will must head to the direction of your objective. Return to that vision when things get doubtful or hard.

2. Invest your money wisely

Generate income. Your income will be the financial foundation of your vision. This will fundamentally come from your job’s income, but don’t settle with that.

Objective to increase your income. Invest your time, money & hard work in to a beneficial enterprise. Start a business that you feel passionately about & make sure it will work. Think carefully of every detail in your enterprise & work on it. Do not settle with lovely results. Objective for excellence, quality & integrity to succeed.

Start a fund for your future. Allot a percentage of your present income to savings. Do this at the start of each month, before you go ahead. This will avoid the enticement to buy, buy, buy. It will also teach you how to properly budget your money for necessary expenses.

3. Save up

Money in the bank could also earn interest. Although it is not considerable compared to a lovely investment, it is still a lovely way to keep money for your future. make sure you maintain the money in your savings account. Avoid touching it unless it is necessary.

Give value also to your coins. Every single cent matters. All of those scattered coins you have there could comprise a few dollars. Even if it is considerably small amount, it will still find some use for that.

Don’t spend all your earnings. As they say, don’t earn to spend. Buy only things that you require. Tighten those belts for now as you bank for a more secured future. Select to live basically. Forget the require to show off on other people that you can afford. If you require accomplish financial independence, you must hold on to your money as much as possible.

4. Spend wisely

5. Keep contingency designs

Avoid incurring debts as much as possible. Take control of your finances as much as possible. Credit cards for example could hold you locked in a desperate state. You could be getting what you require now through that credit card, but imagine yourself giving the bulk of your income for interest payments! Make ends meet in the meantime for later on in life, you will surely afford to be leisurely.

Protect your interests whenever you enter in to any engagement. Make sure that your endeavor is legal, that you are financially capable, & that it is feasible within your means. This way, you will have optimal performance & desirable results. You could prevent harmful losses in the long run.

You must plan ahead for events in the future. Have contingencies. Make positive that your financial assets are secured. At this phase, it is a lovely option to get an insurance policyowner. Insure your life, health & property, even your loved ones.

Health is wealth. The only way for you to accomplish your dreams & be able to stand on your own is when you are physically & psychologically able to do so. Have regular check ups with your physician. Have a healthy diet. Exercise Regularly. Health will be your asset to accomplish financial independence. Only a lovely physical standing would let you enjoy the fruits of your toils today.

6. Take care of yourself

7. Be Unstoppable

You must keep yourself focused to accomplish the objective of being financially independent. Do not let yourself be distracted by whimsical desires. Do not spray. Do not procrastinate. Every cent & every minute counts as what you do today will have a lot to say on what you will have in the future. Take advantage of every opportunity that will come your way. Keep yourself confident.

Tell yourself, you won't be a loser in this game. You must make it!

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Types of stocks and bonds

There are many types of shares in the stock market, such as (ordinary shares, and free, and excellent, and the shares, and restricted and unrestricted), and can distinguish between all these

species in the stock market as follows:

- Ordinary shares:
the title is a right of ownership of the company, and give the bearer the right to attend the annual General Assembly of the company, access to distribution if the company achieved a profit.
- Bonus shares:
which is distributed to shareholders by having the ordinary shares, and shareholders are free to increase as the company's capital, and generated by the holding parts of the company's profits; and therefore the shareholders have the right to this increase in capital.
- Preference shares:
which gives the owner additional rights not enjoyed by the ordinary shares, such as that the owner receives the primacy of shareholders to have access to the regular portion of the profits of the company, and the owner has priority in access to rights upon liquidation of the company by a shareholder regular, and after the bond holders.
- Treasury shares:
Shares which are the company to re-purchase from the market through the Stock Exchange, the shares are not entitled to distributions or voting rights during the period of its ownership of the company.
- Restricted stock:
the words and registry for the registration and classification of the stock on the stock market, whether local or global, in particular through the actions of the registry, so as to give the Stock Exchange with the rights of the rights of this restriction.
- Unquoted shares:
it is the non-registered stock exchange, whether local or global stock markets.
- Coupon stock: which is the return on the stock, and this is a profit earned by the share of investment in the company.
On the contrary, this is not a large number of many types of bonds, and we must here distinguish between bonds issued by private sector companies, government bonds; where I serve as a loan guaranteed by the investment company's financial position, and the second loan is aimed at public spending and its government.

- Bonds issued by the business:
The bonds issued by the business as a contract or agreement between the business (the borrower) and the investor (lender). Under this agreement lends a certain amount of the second party to the First Party, which vows to turn out of the cold and benefits agreed upon in specific dates. May involve other terms of the contract for the benefit of the lender, such as certain fixed assets subject to a guarantee of payment or place restrictions on the issuance of other bonds at a later date. It may also include contract terms for the borrower, such as the right to call bonds before the maturity date.

Government bonds:

Means of debt instruments, government bonds of medium-and long-term issued by the Government in order to obtain additional resources to cover the shortfall in its budget or to meet inflation.
And consider the investor to the securities issued by the Government to be more attractive; It usually has a return of tax exemption, which is rarely achieved with other financial papers. In addition, diminishing the risk of stopping the risk of payment or to postpone it. The central government can increase its financial resources to meet the debt service by issuing more banknotes or by imposing new taxes, if forced to do so.

Typically, the papers are published in the State of information on these securities, such as the date of maturity, coupon rate, and the change in purchase price than in the previous day, and the revenue that can be achieved by the investor.

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