How to Achieve Financial Independence

Many people ask the question how can financial independence be achieved.  Earning a high income does not necessarily mean achieving financial independence.  Ofcourse it always helps to have more money coming into your account every month, but the real key to increasing your net worth is to spend less money than you earn.

Financial independence is a state in which an individual has enough income to live on without having to depend on income from some form of employment.  Some people achieve this by saving and investing over many years, while others start income generating business that do not require much work or supervision.

By following the below steps, you will put yourself on the path to achieve financial independence.

Live Beneath Your Means

Always live beneath your means and avoid unnecessary spending. Review your expenses every month and cut out expenses that are not completely necessary.  This may mean the sacrifice of a family holiday every year, driving the same car even after the car loan has been paid off and waiting for specials and promotions before going to shop at the mall.

Keep Progressing in Your Career and Business

Keep your career or business constantly progressing.  It’s important to ensure that your income consistently increases over the years while keeping or, if possible, reducing your spending level.  It is possible to keep your income increasing by improving your work skills, increasing your value to your employer, applying for promotions and better opportunities with other employers.

If you have your own business, then consider that you have a number of bosses (clients).  Constantly look for ways that you can improve your service to them.  By simply asking how you can better serve them, you will be able to close service gaps and find competitive edges for your business.  By adding more value offered to clients, you should achieve higher earnings.

Start Saving Now

Now is the time to start saving, not later.  Saving is achieved by keeping to a set budget and defining saving goals every month.  Ensure that your budget is written down so that you keep track of spending.  It’s also important to have an emergency fund that can be used for emergencies only, for example a medical operation that may not be fully covered by medical aid.  Some options for an emergency fund to consider are a Savings Account, Money Market or a Fixed Deposit Account.


Once you have a reasonable amount saved in an emergency fund, it is time to start investing.  This will enable you to use the money you have to generate more money.  Keep building; add to your investments on a regular basis.  The larger your investment becomes, the closer you will be to financial independence. It is also important to diversify your investments across different companies and economies.  By following the above steps you will put yourself in the position to achieve financial independence one day.

If you follow these steps closely, you will be on the road to achieving financial independence.

Contact us here to find out how to invest in leading global companies with CybiWealth.


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The facts and opinions in this blog article do not necessarily reflect those of the CybiWealth team or FIM Capital Limited.  FIM Capital is licensed by the Isle of Man Financial Services Authority and authorised and regulated by the Financial Conduct Authority.