In today’s world, BizTrader understands individuals or business owners attempting to obtain financial independence can’t simply sit back and expect to be gifted with financial freedom. Conversely, they must apply a strategic approach that works in a systematic manor in order to achieve a healthy and desired level of financial stability.
Financial Independence Plan
The following steps outline how business owners can position and if followed correctly, be able to sustain a financial level which enables true independence from anxiety and debt.
1.Complete an accurate and honest appraisal of your current financial portfolio
Compile all relevant trading statements, account statements, tax returns, insurance documents, business documents including profit/loss statements, loan documents, credit history, and current property information. As such, this information can compute your individual net worth statement and unique cash flow and income projections.
Furthermore, these documents and financial information can be used as your individual review in relation to where you and your business currently stand, as well as making projections for your future
2. Future Financial Planning
Following your appraisal of current financial standing, the next step for business owners and individuals is to determine the degree of finances required in order to satisfy retirement and financial independence goals.
Additionally, there are numerous free source calculators accessible online which can help you visualise your required number to obtain. Although, be cautious as the assumptions used in the calculators can have a big impact on the results.
3. Identify the ‘gap’ between your future goal and current financial standing.
Once you have identified your required goal and objective in relation to financial independence, it is important to be able to understand the difference between the two. Additionally, once you know the missing gap between financial independence and your expenses you will have to apply strategies to close this gap in order to meet your objective.
Additional Steps to Financial Independence.
In order to close this gap, BizTrader recommends that you consider avenues such as maximising savings, and always reflecting and optimising your business. Including, revising your marketing plan to focus on ROI advertising campaigns that raise your bottom line while decreasing your expenses. Moreover, you should always be looking for innovative ways to minimise spending while increasing your output in relation to your unique business.