Independently Wealthy – Meaning and 10 Tips to Becoming IW

This article looks deeply at the term “Independently Wealthy”, what it means and how anyone can be independently wealthy.

It also includes some very helpful tips that can help you become independently wealthy, regardless of your current situation or even experience.

 

First things first…

Perhaps, a broad characterization of American beliefs and ideals would be the use of two words.

The first word is independent. Americans pride themselves on their freedoms as guaranteed by the Bill of Rights.

In fact, a brief glimpse into American history will reveal that American bedrock principles were demonstrated when the first settlers arrived in American to escape religious persecution.

Additionally, the very basis of our love of democracy is demonstrated in the American Revolutionary War as we declared our independence from the United Kingdom.

In fact, the very document that we revere is called the Declaration of Independence.

Plus we celebrate our birthday on July 4 which in America is known as Independence Day.

Another major part of the American DNA is capitalism.

Capitalism is that form of economics in which individuals, for the most part, have the right to pursue wealth and be fairly free from government interference.

We have the liberty to pursue various legal ways to accumulate wealth.

 

IW (Independently Wealthy) – Importance

Consequently, the combining of these two terms and their dynamics, it may be argued, resonate with the American heart.

The combination of those two terms is independently wealthy.

The importance of trying to attain the goal of being independently wealthy is not only an admirable goal but a practical goal that is worthy of our efforts.

The reality of life is that expected and unexpected events happen. The expected events of life can be planned for.

However, the unexpected things of life cannot be specifically planned for but can be anticipated.

Therefore, in anticipation of the unexpected, it is important to have financial resources that will act as a buffer or nest egg to soften the reality of these impactful things in our lives.

Working towards achieving the needed assets to manage the expectations of life is a prudent goal for most American citizens.

The unfortunate reality of not anticipating the unexpected things of life and not having the buffer of financial resources can place one in an awkward financial situation.

Some of those awkward situations could include requesting extended credit card debt, taking out high-interest loans, having to sell certain assets for cash, etc.

Having to indulge in any or all of these potentially adverse financial transactions can be detrimental to one’s personal financial bottom line.

 

Definition of Independently Wealthy IW

The definition of being independently wealthy is an attainment of a financial position in a person’s life in which they find themselves not dependent upon others for financial resources.

It is the accumulation of sufficient monetary assets, cash, or other assets, that will support the individual and their families without any reliance on others.

Reliance on others includes receiving money from other individuals or working at a position of employment to receive financial remuneration.

 

10 Tips to Help You Become Independently Wealthy

 

1. Plan

For individuals or other entities the building of anything and the expectation the built item lasting starts with a blueprint or a plan.

Building towards being independently wealthy is no exception. It begins with a plan.

Consequently, as part of the plan, it is important to write down what the vision is.

What do you see for you and your family’s financial future? What does being independently wealthy look like for you?

When the vision has been created then it would be prudent to formulate a mission.

The mission defines what needs to be done in order to accumulate wealth, how the accumulated wealth is managed, and how one would spend that wealth.

Consequently, a great way of managing financial income and expenses is to prepare a common-sense budget and, the most important thing, stick to that budget.

Then work on the plan and make as few adjustments as needed to attain your vision and stay on track with your mission.

Also See: Best Reasons Why Success Is the Best Revenge.

 

2. Track

An important step in achieving one’s goal of being independently wealthy is to track the progress made over a set period of time.

By tracking one’s progress, the individual will be encouraged and continue to motivate the individual to stay consistent and dedicated to working towards their goal.

The beauty of tracking one’s progress is that if it is not where they want to be, then they can make a few alterations in their plan and possibly adjust the budget to get to where they need to be or wanted to be.

One important caveat to tracking one’s progress is not to be overly sensitive about it. For example, the stock market, historically, is a good place for one’s investment.

If tracked daily it may drive the investor crazy. However, if watched and tracked over a period of time the portfolio owner will see the value of their investment rise.

Related: Budget Planners to Help Track Your Expenses.

 

3. Maintain Standard of Living

This tip has to do with any financial bonuses in life that one may receive.

Some of those bonuses may be a windfall from the place of work in the form of an actual financial bonus, it could be an unexpected tax refund, or it could be a salary increase.

When these unexpected but most welcome financial events happen, it is important not to spend the extra money on frivolous things.

Also, if one does receive a pay raise, it would be best not to raise your spending to that level of your increased salary.

It is important, therefore, to maintain the same standard of living level and invest that extra money towards one’s financial independence.

 

4. The Financial Plague of Debt

One of the worst illnesses that can affect our financial health is the accumulation of debt.

Often, the debt for the American consumer is associated with credit cards, the purchase of a new automobile, payday loans, consolidation loans, etc.

The reality is that indebtedness has a significant expense associated with incurring debt.

This negative aspect of debt is the interest rate and normally, if we urgently or desperately need money, we are at the mercy of those who almost gladly lend us money but at a higher rate of interest.

Therefore, as much as possible, stay away from debt and remember to pay yourself rather than creditors.

 

5. Money Labors

Most people work hard for their money. They expend life energy and time to earn a decent wage in order to be good citizens and provide a quality life for their loved ones.

Therefore, continue to value your earnings and remember that hard-worked is expended for that money.

One’s payroll statement will probably most likely use the word earnings. Remember you have earned this income.

On the other side of the earned coin, it is also important to remember to make money work for you, if you want to become successful in business and life.

It is important to do research and investigate various investment vehicles that will provide a good return on one’s hard-earned money.

Make your hard-earned money work hard for you!

Also See: How to Be Self Employed and Make Money.

 

 

6. Nest Egg

A good plan of action to prevent your independently wealthy financial plan from being derailed is to accumulate an emergency nest egg.

Many financial gurus suggest that a family set aside 3 to 6 months of needed financial resources to cover this same timeframe of expenses.

In the event of a lost job or medical emergency or other anticipated negative event, this nest egg will allow for the family to weather the storm for that set period of time.

This action is truly the definition of being independently wealthy in that if something untoward happens, the individual or family does not need to rely on others to help them over this speed bump.

Also See: Reasons Why Money is Not Everything in Life.

 

7. Penny Saved

Benjamin Franklin is famously quoted as saying “A penny earned is a penny saved.” He actually said, “A penny earned is a penny got”, but you get the meaning.

Therefore, it is important to watch one’s pennies, nickels, and dimes.

Although this can be taken figuratively, it also can be taken literally as these coins add up to dollars and dollars to hundreds of dollars etc. and etc.

When shopping for needed items, it is important to do research and get the best deal on that product and pay cash.

By paying cash, credit use is minimized and especially if carrying a balance, the consumer will negate the value of buying a discounted item.

Also, there are various money saving and budgeting apps and services available that can help an individual with savings.

Some of these apps or services will actually round up a purchase of a product and apply that rounded amount to various investment vehicles. The acorn app is one such application to help with your savings plan.

Anyway, watch your pennies nickels, and dimes. They add up!

 

8. Buy, Don’t Rent

If you are renting a home or apartment, towards the end of the month or the beginning of the new month, you write out a check to the landlord.

The landlord owns the property and you pay for the use of this living space.

The landlord, in turn, deposits his money and possibly reinvests the money back into the home that you are living in or purchases the additional property, or invests this rent money collected from you into other investment vehicles.

In addition, when tax season rolls around, this landlord is able to claim this income on his or her tax return. It is a winning scenario for the landlord in all financial areas.

For you, the only win is that you get to live on someone else’s property.

Related: How to Make Money With a Vacation Rental Property.

Consequently, a key element towards being financially independent is to not rent but buy if you are able to do so.

If you are able to buy you too will begin gaining the advantages of being a homeowner.

Those advantages include the probability of your house increasing in value and when the tax season arrives you can deduct any interest paid on your mortgage.

Consequently, those wishing to be independently wealthy do not rent but own property.

Related: How To Rent-to-Own Your Home.

 

9. Your Greatest Asset

Being independently wealthy is an admirable goal. Not having to rely on anyone nor anything for your financial well-being is a very secure and great place to be.

However, your financial well-being will not be as satisfying or secure if your physical well-being is neglected. Therefore, the greatest asset that an individual can achieve and manage is their own health.

Being in good health and being happy is probably the highest level of being independently wealthy that one can achieve.

Related: Reasons Why Money Can’t Buy Happiness

This is due to the fact that good health crosses over into all aspects of our being. Those aspects include the physical, emotional, spiritual, and financial components of our life.

If our health is poor there may be adverse repercussions to our body and mind. This in turn may lead to emotional stress and distress.

Finally, poor health may ultimately lead to a strain and drain on our financial situation.

Therefore, it is imperative, that the individual who wishes to be financially independent also ensures that they take care of their greatest asset. That greatest asset is you!

Related: Tips for Stopping Money Fights in Relationships.

 

10. Vision into a Mission

Any destination can be made if there is a vision, a clear-cut and workable plan, and the discipline to follow that plan.

You are on a mission. Your mission, if you choose to accept it, is to attain the status of being independently wealthy.

Also See: Jobs that Pay $30 an Hour and 20 Dollar an Hour Jobs.

 

IW (Independently Wealthy) Personal Story

By no means is this writer independently wealthy.

However, my spouse and I had, we thought, built up a considerable nest egg in anticipation of any unforeseen events that may have occurred in our lives.

Regrettably, we have experienced some medical issues in our retirement years and that nest egg has dissolved slowly but surely over time due to unforeseen expenses associated with the care of my spouse.

I guess what they say about the best-laid plans of mice and individuals (men) are true. We can plan for life but sometimes life has a plan of its own.

Also See: How to Make $10,000 Fast and How to Make $3,000 a Month.

 

Conclusion

As an American, you value your independence.

As an American, for the most part, you embrace the economic system of capitalism.

These two aspects are intricately entwined in America’s DNA.

When combined together, the goal of being financially independent awaits.

The beauty of living in America is that you can dream and dream big.

Also, living in America is the place where dreams come true.