Financial Independence

Posted by Mike Smith :: July 4, 2007 @ 9:31 am

Financial independence means different things to different people.

Some would be happy to have the collection agencies stop calling. Others would like to get out of debt. Still others would like to be able to have their money work for them. Whatever your definition of financial independence, we here at Lending Club invite you to mark this Independence Day holiday by considering the following methods to improve your financial situation.

The first step in nearly all new endeavors is to educate yourself. For all of the positive attributes of the educational system in our country, there is a surprising lack of financial education included in the normal curriculum.

It falls on your own shoulders to learn the material. As interest in the subject of personal finance has exploded in recent years, there is a plethora of information available. While the internet is a great resource, don’t overlook the value of a good library. Libraries offer access to the latest books, magazines, and investment newsletters at little or no cost to you.

Making a financial plan for yourself is easier than you think. While the services of a financial planner may be recommended in specific circumstances, in most cases you can make a plan for yourself. Start by taking stock of your current situation to clearly define where you are now. Make a list of the goals that you hope to achieve. Planning is the bridge that connects where you are to where you want to be.

As you begin to put your financial plan into action, remember to start small. You’re likely to make a few missteps along the way. It’s better to make your mistakes while there’s less on the line. Remember that it’s okay to make mistakes. As your confidence and successes grow, you can expand your plan to help achieve your goals more quickly.

Remain flexible as you implement your plan. You don’t have perfect foresight when planning. There are likely some assumptions that you made when creating your plan that turn out to be untrue. Just as there are many roads to any destination, be prepared to take an alternative route if you encounter a road block or a flat tire along the way.

Perhaps the most important tip is to start the process today. In all matters, but particularly those in the financial realm, time is one of your greatest allies. The danger of starting tomorrow is that tomorrow never comes.

Your situation will not improve until you actively make it improve. Even if all you do to start the process is to read one book on personal finance a month, consider how much better off you could be one year from today.