Financial independence means different things to different people – but in essence it means having enough cash in the bank that you do not need to rely on employment to cover your living costs.
Almost two-thirds of UK adults are not financially independent, but that does not mean that it isn’t something you can aim for.
Here we’ll examine some of the steps you can take towards financial independence and where to get the help you need.
The importance of financial independence
Reaching financial independence is likely to mean securing retirement before the government-mandated age – giving you the opportunity to experience true freedom in your everyday life.
Always wanted to take that road trip across Europe? Now you can do it!
Have you longed to tackle the garden and turn it into an outdoor paradise that you can tend year-round? Well, now you’ve got the time to do so.
More time to spend with friends and family, and the ability to up and leave exactly when you want to – the benefits of financial independence must be starting to sink in by now…
How can financial advisers support you
No matter where you live, you’ll be able to find financial advisers, from London to Lothian.
After doing some fact-finding to get to know all the ins and outs of your living situation and financial status, and an adviser will be able to secure the best products and deals to keep more of your money in your pockets.
You may want some advice on investing to grow your retirement pot further or methods for streamlining your tax commitments.
Taking on these processes on your own will likely land you in piles of confusing paperwork – so getting an expert to shine a light on things can be crucial.
Steps to achieving financial independence
- Set your target:
Do you want to retire and remain in your home, or are you dreaming of sailing around the world? Knowing where you’re going will make it easier to plot the route there.
- Get control:
You need to make sure that your outgoings do not exceed your income for a start. Having a regular stream of cash into savings is also vital.
- Make sacrifices:
Linked to the previous step. Those restaurant trips, holidays, and lavish gifts may have to fall by the wayside in order to get the plan to work. If you don’t want to live like a hermit, that’s understandable, but remember you’ve got a goal to reach.
- Boost your income:
Can you take on extra freelance work? Have you worked hard for years with little reward? It might be time to ask for a pay rise or a promotion. Remember – if you don’t ask, you don’t get!
- Supercharge your savings:
Make sure that your savings accounts give you back the most possible. It might mean opening accounts with little cash access, but it’ll pay off in the long run.