Not Financially Independent Yet? Here’s What You Need to Know

Financial Independence is a mentality, not a state.

I see so many people around me talk about Financial Independence as the state of life where you can fend for all your financial needs by yourself; and I want to give you all a totally different viewpoint and my take on it.

I feel financial independence is the mentality and the self-confidence that if you were to be thrown on the road tomorrow with nothing but a pair of clothes, you would survive it a year down the line.

Now again, I am yet living off my parents in their house and eating delicious home-cooked food by my mother and still, I have the audacity to write this piece. As I said, it’s all about the mentality and I have reached there faster than I thought. 2 years ago, when I began my journey towards financial independence, I was like any of you reading this blog. Clueless! Absolutely clueless. While I just started my journey off by shooting in the dark, let me make it a bit simpler for you.

Most of us have been through that phase where we just wait to enter college to start earning our first few pennies and I was too. I was 17 years old when I joined college and I had started looking for opportunities as soon as I entered. With everything new, there’s this initial effort which goes highly unnoticed and I feel,

Many a time you start before you’ve actually started.

It took me around a year to actually hit it off and I got my first income at the age of 18. I would like to say ‘And the rest is history…’, but then why are you here for? My first earnings were through teaching and oh boy, what an experience it has been!

The day my bank account got credited with my own hard-earned money, I decided to never ask my parents for money again. It’s been more than 2 years ever since that decision, and it has taught me what no school or college would ever teach you — Financial Literacy. While there were several life lessons picked up by me on the way, here are the Top 5 I would like to share with you:-

1. Motivation is the Key

Earning money requires motivation and earning money at the age of 18 requires quite some motivation. I mean, it’s very easy to accept the cash your parents are handing you if you are privileged enough; and I was privileged enough. But then, what’s the learning in it I used to feel? Let me tell you, this journey is not for the weak-hearted. There will be times when you will be down and out, and your savings would be at a bare minimum and there is yet an entire week in front of you to survive. Your mind would crave to take the money your parents are offering, but it requires immense discipline and determination to stick to your plan. There was a deep vigor in me to want to live life my own way without having to ask my parents for every other thing I wanted to do, and Financial Independence seemed the only way out for me. There were also a series of events in my life which added to my motivation and you can read up about them here-

2. Every Penny Counts

I gotta admit it. College life is pretty expensive, especially if you are that student who believes in ‘Work hard and party harder’. The food in the messes is pathetic and it’s just every day that you feel like going to Starbucks for a coffee. We have all heard that saying way too much and more so from our parents every now and then, ‘Son, every rupee matters’, and I think you can only appreciate it enough when you start earning yourself. There was a period in between when my earnings had stopped and I had dried out my balance. I learned to prioritize my needs over wants and started cutting the unnecessary costs. I believe such periods in life motivated me, even more, to go out and earn an empire enough to never be in such a situation again. Now, had I resorted to the money my parents were urging me to take I don’t think I would have ever been able to fuel that will power of mine.

3. Either Re-Invest or Spend

It doesn’t matter which stream you are in, I feel one should know the basics of investing or of how to grow your money with time. I started my career in Finance for the very same reason and here is a piece on it.

With time, I started investing half of my earnings and spending the other half. The main idea behind this is that a dollar earned today isn’t going to be valued at the same price 5 years later. Fast forward 1.5 years, I was able to take a 7-Day trip with my friends to Bangkok and Pattaya at the age of 20 on my own money; and without having to empty my entire bank balance.

The biggest lesson you learn when you step out on your own is to manage your money well.

4. Social Capital > Monetary Capital

Take it from me,

Good relations can buy you what money can’t.

While I did set off on a path to earn my own money, I did realize that not everything is about money. I strive to strike a chord with as many people I meet and encounter. If there is one thing that people value more than money, it is time. And sometimes all it takes to have a good network of people, is to give them your valuable time. Do good to people and they will never forget.

5. Don’t Wait For an Opportunity, Create One!

‘ A false step is made by standing still. ’— Timothy Ferris

You’re most probably losing out on an opportunity by complaining about the lack of them. There are many people waiting for it to be served to them. You gotta fight it out. You need to put those extra hours in your days to get it. The other day, I was listening to a talk by Dananjaya Hettiarachchi, and he’s put it absolutely beautifully:

It doesn’t matter where you start, as long as you start

Bill Gates started at the age of 18 and Colonel Sanders (Founder of KFC) at the age of 65. So it does not matter what phase your life is in currently. There are 1000 ways in which you can add value to society and you just have to create a market for your value to sell. All you need to have, is the burning desire to do it :D

When I look back at the last 2 years, it’s been an amazing journey. The process started off slowly, but I am proud of where I have reached. Imagine being able to go to the shopping mall and buy whatever the hell you want to! I have treated my parents out for dinner, been on two trips, paid for all the parties I have gone to, bought my expensive sports equipment by myself, and have paid for every basic requirement of mine in the hostel. Keeping a track of all the finances and managing to keep the inflow steady has taught me lessons that no book will impart. I am not saying it’s essential to be financially independent, but the experience is truly rewarding and one of a kind. I have been greatly inspired by the book ‘Rich Dad Poor Dad’ written by Robert Kiyosaki and I would 10/10 recommend you to get your hands on it if you haven’t yet.

I have been meaning to write this blog for quite some time, but alas, one thing followed the other and it got delayed by 2 weeks. Nevertheless, this is the most I have enjoyed writing among all the blogs I have written in the past few weeks. I hope you enjoyed reading it and until next time, adios!

~Adit D