How To Become Financially Independent

House on money stack

Becoming financially independent is the goal for many professionals, business owners and soon-to-be-retirees. It may be one of your goals as well. 

Achieving that reality of financial independence is difficult if you don’t know how to pursue that objective. With experience as financial planners in Calgary, this guide shows you achieve financial stability. 

What Is Financial Independence? A Calgary Financial Planner Definition 

It is essential to understand that “financial independence” could mean something entirely different for each business owner, professional or retiree. Therefore, being financially independent does not mean being rich; it means that you feel confident with your financial situation.  

You’re not worrying about bills, you are (almost) debt-free, you have money saved for your future goal, and you have enough money to cover emergencies. When you are financially independent, you stop stressing about money and focus your energy elsewhere. 

While this might sound like a dream, it is something very realistic and achievable. It will take lots of time and effort, but you can reach it if you take note of the following simple steps. 

How To Achieve Financial Independent

Make Your Finances Personal

Your personal financial plan should just be that: yours. 

Don’t worry about what others are doing or planning. Focus entirely on your plan and what you want to achieve. There is no cookie cutter “right way” of doing things; there is only your way of doing it. 

It is important to have professional support from investment and wealth management professionals to help develop a plan that will help you achieve your goals. Remember that everyone has different goals and are in different situations. 

The only thing that matters is how much you have and how you can use it to reach your goals.

Pay Off Your Debt

Debt will always make it challenging for you to reach that heaven of stability. Unfortunately, it’s one of those things that must be done. The trick to debt is paying it off quickly. 

Here is how you can do effectively: 

  • Pay off any credit card debt you may have and avoid using them in future
  • Make extra payments to get rid of debt so that you can reduce interest payments 
  • Prioritize all other debts before your mortgage, as you’ll have this for decades. Once you completed all your other debts, you can focus squarely on your mortgage 

Invest For Your Retirement

When you’re young, why think about your retirement? Why save money for a lifestyle decades down the line? If you follow this mentality, then you’ll find yourself with little or zero retirement savings at all. If you want to reach a comfortable time of your life, then retirement investment planning is crucial. 

home budget planning

Prioritize your retirement now by saving money (alongside your RRSP), taking advantage of smart investments, and diversifying your wealth portfolio. By starting now, you can ensure that you’ll have a strong foundation in the future, so you get to enjoy your retirement rather than work through it. 

Start An Emergency Fund

Emergencies happen in life, and if you’re not prepared for them, you’ll face a real dent in your goals. 

As you work, pay off your debts and save money, make a third category: emergencies. Keep putting a little bit of money into that account, and when the time calls for it, you’ve got it covered. That means less chance of you dipping into your savings or creating more debt. 

From losing your job to significant home damages and repairs – anything can happen, so it’s best to be financially prepared for it. 

Seek Support When Needed From Financial Advisors in Calgary 

This guide should help you start your journey to financial independence. However, we know that sometimes that it’s not enough. You might need a financial planner in Calgary to understand your personal financial situation, income and future goals and devise a strategy to help you achieve them. 

If you seek support, then get it – it can ensure your stability is achieved! 

Your needs change, but financial advisors didn’t. We did. At MRG Wealth Management, our unique approach to wealth management in Calgary can help you achieve your financial and life-long goals. Our financial advisors in Calgary will give you the confidence and clarity to make decisions with your money, so we can get you where you want to be. Our integrated financial management system, simplified process and exclusive strategies can secure your future. Live the life you want with MRG Wealth Management.

If you have questions about financial planning in Calgary and wealth management in Calgary or would like to explore your options, connect with us to speak with a financial advisor in Calgary and get the answers you need to achieve your goals.