What Do You Get Separated from The Financial Independence?
What is the economic freedom? How can we determine that we really are free, financially speaking?
1. We Save less than what we spend
Unfortunately many people spend most of his time at this point. Incur more debts that may assume, or in the worst case the lack of a stable employment, family burdens, the little control over spending, etc, leads them to live episodes dramatic.
Others in change although they have a train of life considerably high, living permanently indebted, hire a credit after another and are not able to renounce nothing.
2. Our work covers our expenses
At this point is in which are the most people, but much less represents the financial independence. Certainly this is the point that families can begin to save, and it is also the stage at which they are the most of them, because, although with the time their sources of infresos grows, so do their expenses.
This point is not as secure as many people think, because an unexpected (labor or staff) can do to consider quickly to phase 1, as we have seen it is not too recommended.
3. Our savings allow us to take certain risks in our career
When just arrived at end of this month, or debts we drown, hardly able to give steps for moving or redirect our professional career. We are so tied to our work, that we cannot take any risk.
In contrast, if we have reduced our costs and began to take some savings reasonable, our range of options open. We can begin to take some risks, such as change jobs, responsibility for new projects or even move forward in our company with more security.
The fact is that the dispose of a margin of error, we are in a position that we can “afford” to be without work for a few months, because we have sufficient financial resources to endure for a reasonable time in the event that things go wrong.
4. Our savings allow us to leave our work and mount our own business
Here is a great leap. We arrived at the conclusion that even well in our work,seduces us much more the idea of creating our own company. As we all know, the adventure of undertaking is not easy, especially in Spain.
Not only depend on our own financial resources, but our capacidadad to finance our project, develop new management skills, find our site on the market, etc.
5. Our business covers our expenses
No one is aware that during the first two years, most of the business projects only produce losses and is rarely get cover expenses.
However, if you endure arrives at the time that our accounts of income and expenditures are balanced and here is where actually taking the first step toward financial independence.
6. Our business begins to generate profits
Come to the point at which not only cover our expenses, but for the first time we get real and tangible benefits. See A Glimpse what may be a great future, although we are aware of just start.
7. Our benefits allow us to take risks
Once we started to obtain benefits, we can begin to take certain risks unthinkable in the early stages of life of our company.
Risks include among others the expansion of business, experimenting with new products and services, risk in original marketing campaigns, hire more staff… etc.
8. Our benefits allow us to sell our company
Perhaps come a time when our business starts to go really well. At this point is that we can raise the possibility of selling (especially if the person is a big sector) while on many occasions at this stage what we are going to give an account is that no longer need to be so above all that is “cooked” in our company, which we are able to delegate much of our duties on other people and that inlcluso we can leave it to others who take the strategic decisions for us.
This is the point where we can actually say to ourselves that we can live without the need to work.
9. Our investments cover our expenses
Although many may think that the previous point is the goal, many others are of the opinion that this is the time the invest in other businesses, “play on the stock exchange”, opt for other projects that are giving their first steps… etc.
10. Our investments produce benefits
At this point we can say we are really independent from the point of view economic and financial. Very few people arrive at this stage, and in fact very few come to the stage 4, but fortunately are becoming more people who are reluctant to take this route.