6 Steps to Financial Independence

by: Charles Amoroso

Financial Independence can be achieved in 6 simple steps according to the IMG Financial Strategy to building wealth. Follow these simple steps and I guarantee you that you’ll retire wealthy. A word of wisdom before we start… “Most People DON’T PLAN TO FAIL, They Just SIMPLY FAIL TO PLAN.”

Step 1: The Discipline to Increase Cash flow

You can increase cash flow in 2 ways.

Increase income (through sidelines/business.)

Reduce expenses (Know what is your needs from your wants)

Step 2: Debt Management

Nothing can ruin your financial dreams faster than excessive, high interest debt. (credit cards)

1. Consolidate debt.

Eliminate debt (pay off the higher interest loans/debt) before investing

If possible avail of a lower interest debt and pay the higher interest debt.

Step 3: Create an Emergency Fund

Set aside at least 3 to 6 months worth of expenses in order to address for any contingencies that may arise.

DO NOT TOUCH the Emergency fund unless it is an emergency!

Place your fund in liquid investments such as Time Deposit/Money Market Fund.

Step 4: Ensure Proper Protection

What if you die too soon? Who will take care of your family?

Solution: Income protection. To have peace of mind, provide proper protection (Life Insurance) for your family while building up wealth/passive income.

In the event of untimely death, life insurance protection can help you replace your income, help finance children’s education, pay for basic needs, pay estate tax, pay debts, hospital bills, funeral expenses, etc…

Step 5: Build Long-term income producing ASSETS

What if I live too long? Who will take care of yourself?

Solution: Build Long-term ASSETS (Passive Income)

Accumulate ASSETS not LIABILITES

Move lower interest Savings to HIGHER INTEREST Savings

Know how to make MONEY WORK for you, not against you

Understand RATE OF RETURN, TIME VALUE OF MONEY, COMPOUND INTEREST, TAXATION and the Effects of INFLATION.

Step 6: Preserve your ESTATE

Build a family legacy – make sure that your children inherit your estate.

Protect what you’ve build… A proper estate plan can take care of your children during you life and after death.