7 Steps You Must Take To Be Financially Independence In Nigeria

7 steps you must take to be Financially Independence in life

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1.Change you mindset about money-
Too many people have wrong mindset about money.

Here are some

a) Money is evil – the truth is, money is neutral it only take the nature of who handles it

b) Some are born rich while some are born poor – The truth is no one is born to be perpetually poor. You can walk out of poverty by hard work and applying right financial principles

c) The poor see every income as harvest, But the rich removes seed for investment before consuming the rest

2. Understand your present income level. When it comes to financial management there are three Personal Financial Statements you
must consider in establishing your financial bearing they are:

a) Cash Flow Statement
b) Balance Sheet
c) Budget

Many confuse these three statements or assume the single statement they use is sufficient. But without all three statements working in conjunction, the value of any one of them is reduced to almost nothing.

• The Cash Flow Statement: is an accounting  of your past expenditures. Most people who
say they budget are actually only tracking their cash flow after they’ve already spent the money .now you can effectively view and manage your cash flow without even lifting a
pencil.

• The Balance Sheet: is a snapshot of your assets and liabilities at a particular moment in time. What do you own and what do you owe? It sounds simple, but although you’re
likely familiar with the myriad of statements for assets and liabilities that flash before your eyes each month, the completion of your own
balance sheet will give you an aggregated view of your financial realm.

• The Budget: represents your financial future. It’s nearly impossible to create without first
having completed the exercise of creating a cash flow statement. With that in hand, you're ready to create your budget, the projection of
what your spending should be in the future.
For most of us, our income and expenses run on one of a few variants of a monthly cycle;

3. Cut down on expenses. The first step to financial freedom is cutting down on unnecessary expenses you make that causes financial leakage.
Most people believe the key to wealth is a high-paying job. Yes, it's easier to amass assets if you have more money coming in each month, but the true secret to increasing
your net worth is to spend less than you make. It is a cliche; but it is the fundamental, absolute, non-negotiable reality of money.

Example if you are in the habit of taking a bottle of soft drink (molt or bear) after every meal you should cut the intake or stop it.
For a person that drinks molt of (#120) after each meal in a month you would have consumed #3600 and in a year #43,200.
Imagine how much you would save in a year if you choose to cut down this habit and set this
income aside.

4. Increase your income.
Incomes comes in different ways to and individual Salary, wages and royalties

a) Income is money received, especially on a regular basis, for work or through investments.-
Thus if your job doesn’t pay you as much as you think evaluate it again, maybe it’s time to
seek for a better paying job.

b) Wages – is monetary compensation (or
remuneration, personnel expenses, labor) paid by an employer to an employee in exchange for work done. Payment may be calculated as
a fixed amount for each task completed (a task wage or piece rate), or at an hourly or
daily rate, or based on an easily measured quantity of work done
You can work on having multiple income streams. By this I mean using the extra hour after your current job or weekends to do things that will add to your income E.G add
monetary value to services you render eg decoration, research for people and charge a
token,

c) Royalties and Rent-
Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage
of receipts from using the property or as a payment for each unit produced.
what do you have that can bring in extra cash? You own a house were some of the stores have been locked up for a while? Then give it on rent, if you have more than one car
and seem to be finding it difficult to maintain both. Then give out one for taxi to generate extra income.

5. Start saving.
As Napoleon Hill said in, "Think and Grow Rich", all financial success starts with the savings habit. When opportunity presents itself, those with the capital set aside to take
advantage can profit big, perhaps even enough to be set for life.
Until you start saving your finances is not safe. Savings is the portion of disposable income not spent on consumption of consumer goods but accumulated or invested
directly.
Not matter the amount you earn try never to. consume all your income. The poor will always
be poor and broke if they don’t break the cycle of depending solely on a pay check Save something from your income and then reinvest it. by that way you will become independent from always waiting for next pay
day.

How to save:

a) Set aside a portion of your income no matter how little.

b) It takes sacrifice to save so stick to the plan. So be determined to stay through Where to save:

a) Open an account that you CANT easily access and put in the saving.

b) Take an insurance policy where the savings can be locked up over a period of time. eg take FBN Insurance flexible savings policy..

c) Join a local contribution club where a certain amount is saved randomly on monthly
bases

6. Start investing
The difference between the rich and the poor is in what they do with money. The poor thinks
on where to spend the money but the rich thinks of what to invest the money on.
Thus to become financially independent, after saving use the money to invest on something
that will generate more income rather than dispose it on consumables.

7. Avoid debt.
Debt steals your income even before you get it. As much as possible avoid debt. Before you go into debt ask yourself;

d) Is this debt absolutely necessary? is there no alternative to what you want to do

e) Can this project, be delayed and payment be negotiated instead of going to borrow to finance It.?
No matter what you think about debts, the truth is you will be much better off if you avoid new debts and destroy the ones you already
have.

Continuity:
In everything you do the key that keeps you to the end is continuity. Don’t just start keep at it till you reach the desired goal of becoming
truly Financially Independent.

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