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7 Tips to Financial Independence

Happy new year, Alphas! 2020 slipped by, 2021 was smooth chaos, and in 2022 we are determined to reach new heights! All and all, women are reaching new heights and taking more risks, are you?

Financial stability for women is a must! Aside from the wage gap we all so frequently discuss, the real problem of not being financially independent is being stripped of your choice to make decisions. To put it simply, women who don’t depend on anyone financially are less likely to stick around and deal with unnecessary stressors. If you haven’t checked statistics lately, fewer are getting married, more women are getting divorced, and overall the travel industry has gained a whole new gender clientele. We no longer settle because our freedoms are no longer tied to our financial independence! What am I saying?

Truthfully, I can take it all the way back and tell you how I had to force myself to learn about money. I can tell you that I wasn’t always wise with money, nor did I have parents who taught me about money. My family struggled financially growing up, and well, I was determined to change the course of my life! As COVID creeped in and everyone panicked, I left the country to explore. I also quit my corporate job, stopped taking calls from clients I no longer wanted to work with, and my references grew. Today, I find myself on vacation, not sure for how long as I recently picked up doing creative projects that spark joy.

I learned a lot from my clients, which remains true in everyone I coach…. They all wanted "instant gratification." I wish I could tell you I won the lotto, but the truth is, I worked my butt off, took risks, invested, and I did it all while most people slept. We can all be financially independent in this new world as the possibilities are endless, but without a plan, you will not get there. So, if you're ready to live a life without limitations...

Here are 7 tips to gaining your financial independence:

  1. Define serious goals - A little sacrifice goes a long way. For example; If you plan to save 10k in 5 months, you will need to save aggressively, which means less "play money." Remember how I mentioned "instant gratification"? Well, this is where most people get tripped up. They will reach 2k and start spending again because they want to celebrate before reaching their goal. Setting timelines is also important to keep track of your progress. I recommend reading "Setting Smart Goals" to start this step.

  2. Build your credit score - Not my favorite thing on this list, but given that most of you live in the USA. Having a good credit score opens doors in America if running a business. I also recommend building your business credit! If you are new to building a business, YES, your business will also have a credit score. You'd be surprised what you can do with business credit. If this is your first time hearing about it, I recommend reading "Principles of Building Business Credit" to learn more.

  3. Manage your own finances - I understand having joint accounts to pay bills, but honey, don’t let that man mess with your money. You should always know what you have when you have it and where it's going! A wise woman once told me, "he should have your heart but not your wallet"! Understanding your finances is crucial to growing your wealth.

  4. Budget Effectively - I also tell you that having a budget is important to understanding your money flow. IF you are consistently trying to figure out how much money will be left after bills are paid, you are doing it wrong. There is a better way! Keep track of all expenses on a book, spreadsheet, or app. Additionally, you should have a method to how you keep your funds. Example: how much is for savings, investing, bills, personal expenses. Knowing ahead avoids chaos.

  5. Different sources of income - There are three types of income - Earned, portfolio, and passive income. I wish I had been taught this sooner! Having a career and a job is great, but depending on one source of income isn't! We live in an ever-changing world, which is why you can't depend on just one income. Consider some side-hustles until you learn the skills to build residual income. To simplify - earned comes from any job you take on and receive a paycheck, portfolio comes from investments (stocks, etc.), passive comes from investments you tend to forget about (investment properties, business holdings).

  6. Have an emergency fund - Someone once wrote that you should have at least eight months of worth of expenses in your savings. Don’t panic; little by little, you definitely can! Break down what you can realistically save per paycheck, and as soon as it hits, don’t give yourself a choice to debate; send it to your savings! Side note: I once avoided all outings for four months to reach this goal, and it was the beginning of my financial stability (you got this!).

  7. Invest, invest, invest - Warning, I lost 10k in 2 days when I started! We all go through learning curves. Please do your research or work with an advisor to help you. Either way, your money should not be sitting somewhere catching dust when it can be working for you. If you've heard the saying "making money while I sleep, "… welp, this is why! Investments in the right places grow while you sleep. Be inquisitive, and if you are learning, take the time to really understand before you invest. Please do yourself a favor and start looking into crypto. The stock market is not what it used to be, and our world as we know it continues to change. Allocation mix is important; I recommend reading some books or watching YouTube videos on traditional investments, crypto, and property investments.

Last words, Financial freedom is the gateway to fulfilling our dreams, living without compromise, and transitioning when necessary. I hope this got your wheels turning! If you want more blogs like this or have questions, email us at Info@shealphaco.com.


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