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A mindset change might not sound like enough to meet your financial goals.
But its the first and perhaps the most important step in the right direction.
Breaking Down Financial Independence
What is financial independence?
It isnt always easy to define.
For some, financial independence means having enough income to support your lifestyle without working.
Achieving financial independence, however, can be challenging.
Youll find plenty of advice online, but not all of it will apply to your situation.
The FIRE (financial independence retire early) movement offers one unique way of looking at financial freedom.
This movement focuses on transforming your relationship with money and achieving financial success however you define it.
Orman has a similar take on financial independence in her blog post.
She describes it as the result of a process that we create and then commit to seeing through.
Even minor changes to your budget and lifestyle will make a difference.
The Money Mindset
According to Orman, the first step toward financial independence is changing your perspective.
But what does that mean?
Rachel Cruze, another financial expert, has a more in-depth explanation.
She describes your money mindset as your attitude about beliefs and money.
For example, constantly worrying about your debts is a sign of an unhealthy money mindset.
Steps to Change Your Financial Perspective
Shifting toward a healthy money mindset might sound simple.
However, it takes active work.
Make a List
Orman recommends making a short list of goals to start working toward financial independence.
Writing down two or three achievable goals can help you visualize abetter financial future.
For example, one of your goals might be to own your home.
Writing the goal down and keeping it somewhere you see every day will remind you what youre working toward.
Other examples of realistic goals include:
see to it your goals are well-defined and achievable.
It also helps to give yourself a realistic timeline.
Just remember that this list isnt supposed to stress you out it should inspire you to take action.
Adopt a Growth Mindset
The term growth mindset was originally coined by Stanford researcher Carol Dweck.
It means believing in your ability to change and adapt.
A fixed mindset, on the other hand, is the belief that your situation is unchangeable.
Adopting a growth mindset can change the way you see the world.
You cant make housing more affordable or lower interest rates on your own.
Set Aside Time for Financial Planning
If youre struggling with debt, planning for your future can feel overwhelming.
You might be tempted to ignore the problem instead of facing it.
Scheduling these sessions can help reduce your stress throughout the rest of the month.
If you share your finances with a partner, be sure to include them in your planning sessions.
Its important that you are both on the same page when it comes to your spending and saving habits.
You might see influencers posts about their financial independence and wonder why you arent in the same place.
This can lead to resentfulness and frustration, which wont help you change your money mindset.
Instead of comparing your situation to others, focus on your own goals.
Remember that everyones circumstances are different, and take pride inevery small achievement.
As Orman puts it, Financial independence is about the journey.
Every choice you make that moves you closer to your goals is a positive one.
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