Financial independence is the goal of many people. The idea of being able to do what you love, living stress-free of money concerns, is appealing. Why is this goal elusive for so many? It is often because people ignore the basic principles that are the foundation to achieve financial independence. There are some common points that can help you reach the goal of financial independence. Once you reach financial independence, you will be able to make more choices on how you want to live. 

Create A Budget
A budget is a tool that lets you see where your money is going. It lets you know how much you can spend and how you should spend it. If you are uncomfortable with the challenge of setting up a budget, a good way to start is a free budgeting app like Mint. To build a budget on Excel, have a column for income and a column for expenses. Make sure that your expenses do not exceed your income. List important categories of expenses first like rent or mortgage, healthcare, utilities and groceries. Then, add your entertainment spending and luxury items.

Live Within Your Means
Living within your means requires knowing what your total income is. Income includes your job salary, government benefits, and gifts from others. Do not spend what you do not have. If you are bringing in $3000 per month, that is your absolute limit on what you can spend. You should use a budget to determine what you should be saving and paying for taxes. After that, you begin with what you have leftover.

Live Debt Free
Living free of debt is hard for many people. The cost of living is so high and the temptation to buy on credit is everywhere. Try to resist incurring debt. Devise a plan for buying things with cash. If you prefer the convenience of a credit card, use a debit card instead of a credit card. Why? A debit card will deduct funds out of your checking account. That disciplines you to be careful about how you use it.

Invest Wisely
Wise investment means picking good value at low prices. One of the best ways to build wealth over the long term is to invest in a mutual fund. A mutual fund is run by professional investors who take your money and put it in a diversified pool of high-quality stocks. Another way to build wealth is to buy rental properties and rent them to other people. A good thing to do to invest wisely is to pay for certifications and education. This opens up higher-paying jobs for yourself or your children.

Keep An Eye On Your Finances
Keeping an eye on your finances is smart. It lets you start to see yourself as a steward of a business that can benefit not just you, but others as well. A mature financial manager knows that giving back to the community is healthy. Make sure some of your budget is devoted to charitable giving. Your money does not go with you after you die. Wise contributions to family and others makes sure that your legacy is a blessing and not a headache.