How to Set Yourself up for Financial Independence

Leaving University and getting ready for a life of adult responsibilities is often one of the most disconcerting and stressful feelings that a young person can experience. Sure, you’ve got your qualification — but do you even know what you want to do? Or what if you’ve made a terrible mistake and should have loaded up a backpack and found your calling in some exotic land instead?

And what about paying the bills? What can you do to set yourself up for financial independence now that it’s all on you to make ends meet?

Well, here are a few tips that might help.

Get work as soon as you can and don’t be afraid to move on

At the start of your working life, one of the most important things to do is to get a job as quickly as possible and start building your CV. Ideally this job would be in your target field, but it’s not the end of the world if it isn’t.

Getting into a job as soon as possible will help you start acquiring and saving money immediately, and it will also help to remove your fears and misconceptions about the working world.

Once you’re positioned in a job role, don’t be afraid to begin looking immediately for better work and sending out applications. Even if you’re completely content with your current position, it can be worthwhile keeping an eye on what else is out there.

Start a side hustle

For every day-job, there’s a career dream, hobby, or passion which can be tapped into.

Setting up a side hustle is one of the best ways of not only keeping yourself entertained and creating a sense of empowerment in your working life, but also of making some supplementary income at the same time.

Examples of side hustles that you can explore could include things like affiliate marketing or freelance web design, or even just a blog or YouTube channel where you get to share your interests and insights with the world.

Of course, a more traditional startup company would tick the right boxes as well.

Invest in a budgeting system

Making money is only part of the equation — and it could be argued that it’s not even the major part of the equation. If you want to be financially independent, it’s essential that you get a handle on how money flows in and out of your life.

How do you budget your income? How do you plan your savings? How do you manage and track your repayments to loan companies like banking.loans?

There are many books out there on different budgeting systems, and many digital budgeting tools and services such as Mint.com and YNAB. Pick a system and get started using it.

Avoid impulse spending

“Impulse spending” refers to spending money on things that you don’t need, because you feel an emotional pull to do so.

Examples could be buying a flashy car to appear high-status, or getting the latest bit of gimmicky fitness equipment because it “looks cool”. Impulse spending is a major drain on many people’s finances. Try keep yourself free of this trap.