What Does it Mean to be Independently Wealthy? + 10 Tips to Get There

Most people wish they had more money.

Whether it is to pursue their passions, travel more, quit their  stressful job, or because you need money now, dreams of wealth permeate  the minds of many. Read on to learn what it means to be independently wealthy.

What Does it Mean to Be Independently Wealthy?

Being independently wealthy is having enough wealth to not require support from another person or income from employment. Literally, having wealth independent of others.

How is it Different from Financial Independence?

At this point, you’re probably thinking that definition sounds a lot like financial independence. That’s because, by definition, they are essentially the same thing.  Although you’ll find some variation in the definition of financial  independence, most agree it is essentially having enough wealth to live  as you wish for the rest of your days without needing to work.

What Independently Wealthy Looks Like

While those people are independently wealthy, so are these people: – Ordinary car – Nice house in a nice neighborhood – Regular clothes – Fly like the rest of us maybe owns a boat – May own

Here are some tips to help you reach financial independence and become an everyday millionaire.

1. Build a Budget

The first step with any plan is to know where you’re starting from,  and a budget will allow you to do that. If you don’t know where your  money is currently going, it will be hard to know what areas to adjust  or how to start directing your money.

2. Calculate Your Net Worth and Track It

Once you have your initial budget, the next step is to calculate your net worth. Net worth is the sum of your assets minus your liabilities, or what you own minus what you owe. Assets include things of value or things that make you money. These include investments, retirement accounts, savings, real estate, etc.

3. Create a Plan

Now that you know your current budget and your net worth, it’s time to create a plan to reach your money goals. This plan will look different for everyone, and some journeys will take longer than others.

4. Live Below Your Means

Living below your means is critical to becoming an everyday millionaire. Put simply, living below your means is ensuring that your expenses  don’t outpace your income. But beyond the simple, you’ll need to live  far below your means if you hope to become independently wealthy.

5. Avoid Debt

Part of living below or within your means and working toward becoming  independently wealthy is paying down existing debt and avoiding new  debt.

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