Things You'll Need:
- The desire to have financial security and independence.
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Step 1
The first step, which is vital to financial security, is to get completely out of debt. This means diligently getting yo bills paid off and eliminating any car payments you have.
First, collect together all of your bills and organize them by the order in which they will be paid off. Using a calculator, divide each total amount due by he monthly payment. This number is the one you will use to organize them. Starting from the biggest number, number them in order from greatest to least. Then, when it is time to pay your bills, pay each one their respective minimum payments, except pay the first one a little bit more. Keep doing this until the bill is paid off. Then, once the 1st bill is gone, pay that extra money onto the 2nd bill, along with it's monthly payment AND THE MINIMUM PAYMENT FROM BILL #1. See the pattern?!
Follow this pattern until all of he debt is gone. This is the most important step. -
Step 2
Next, find a way to add to your income in a recurring way. This means to find a money stream that continues to bring in money, even when you are not working on it. There are many way to do this. Here are some of the best:
Stocks
Bonds
Writing eHow articles
Making designs for CafePress -
Step 3
Keep up with your finances. This means reconciling your money accounts every month, only buying things when you have the cash to pay for them, and never...ever...using credit cards.
Financial independence can be yours!!!
Comments
slphilbrick said
on 8/31/2008 Good info for everyone !
Desula said
on 8/25/2008 Thanks for the tips on becoming financially independent.
changeling said
on 8/23/2008 Great step-by-step.
terrijohnson said
on 8/11/2008 This is new to me! and I thank you! -tj