How to Become Financially Independent and Stable

Becoming Financially Independent is not always the easiest task. This however should not discourage your no matter what your situation. There are always ways to improve your situation towards becoming more financially independent.

Difficulty: Moderate

Instructions

Things You'll Need:

• Credit Card
• Bank Account
• Pay Check Stubs
• Notebook
• Calculator

1. The first things you should know about making yourself financially independent and stable is your expenses and your income. If your expenses outweigh your income, well, you are not ready to become independent. You can do this by taking you pay check stubs and adding them together. Write this down on a piece of paper using your notebook.

2. Now figure out what your expenses are. This can include rent, phone bill, car insurance, car payment, anything you currently have as an expense should all be added up. Reminder this list is different from your future expenses.

3. After figuring out what your expenses are put them directly under your income. Do the math. Hopefully your income is quite a bit more than your expenses if you are not on your own already.

4. Now it is time to figure out what your expenses will be once you are financially independent. This is very important due to the fact that these must be lower than your income as well.

5. Take your total income and compare it to what you believe will be your future expenses. Hopefully you still have an extra %20 or so of your money left over. This is very important, due to many factors, one of which being you never know what is going to pop up and you do actually need to save some money.

6. I recommend using or at least setting an online bank account. This way you can see the status of you accounts any time you want. Bank of America has a great online account system that allows you to pay your bills as well online. This can greatly simplify your life being able to pay every bill you have just by going to your bank's website. There is a link in the resources section that can direct you to their website.

7. That is all there is to it. If you can have more income than your expenses you are ready to become financially independent. If not, it may be time you start looking at a new job, a second job, or something that will create that extra monthly income you need to be ready to become financially independent and stable.

Resources

• The eHow Blog (follow if you want constant eHow Updates)
• Manage Your Money
• Bank of America

[tammyfrost]

on 10/13/2009 Great article....This will help many people!