Category Archives: Financial Independence

Emergency fund: Why you need one to build wealth

emergency fund“Anything that can go wrong, will go wrong” – Murphy’s Law. An emergency fund is very important and considered to be the first step of building wealth. The definition of an emergency fund is a fund or a collection of funds which can be used to cover unexpected expenses that are certain to occur to most people. As Murphy’s Law says: “Anything that can go wrong, will go wrong”. Continue reading

How to track your Net Worth – Useful guide

Calculate your net worth

It is important to know your net worth if you want a clear picture of your financial situation.  This is a guide for finding out and tracking your net worth. A free net worth tracker spreadsheet and tutorial video are also provided. Personal net worth is defined as the value all the assets which an individual owns minus a total of the person’s liabilities. Continue reading

Top tips for cutting expenses and saving more

money saving tipsIt is essential to control spending if you intend to save more and accumulate wealth. Lifestyle inflation is the enemy of a good savings plan and detrimental to any plans for attaining Financial Independence. A simple definition of lifestyle inflation is when a person expands their expenses to match increases in income. I will use myself as an example of how lifestyle inflation was one of my biggest financial mistakes. Continue reading