Getting yolofied starts with focus. Getting the right mindset is one thing, improving your financial situation is another one. If you want to leave the rat race, the golden cage, focus on your priorities, you’ll have to improve your financial situation first.
A lot of my fellow bloggers describe this as achieving ‘financial independence’. It’s the situation where your assets make enough money to cover your (basic) expenses so you won’t have to work to cover these.
There are 4 ways to achieve this goal:
– Earn extra money
– Save more of your income
– Eliminate your debts
– Investing that money, let it grow
Eliminating your debts is one of the first things you must tackle. You have good debts and bad debts. Good debts are debts you must pay in order to fulfill your primary needs, like housing (mortgage). Bad debts are debts you actually have for things you don’t actually need, like cars, TV’s and consumer goods. A lot of young students who graduate will have debts, tackle them first! You’ll have to pay a lot of interest on this and thus pay a lot more for things you dan’t actually need. Start paying them off as soon as possible.
Saving more money is one of the oldest principles of improving your financial situation. To me this is not the same as living extremely frugal, couponing… just save after receiving your paycheck and live on the rest of your income. Having a budget is key!
Earning more money is obvious. One can take extra jobs, side-hustle, ask for a raise, in order to increase your savings and possible money to invest.
Investing money is important to let it grow. Each € or $ can be seen as in individual worker of your own company.
So bottomline is: if you can earn enough money, save a lot of it and invest it, then you’ll be able to pay for your primary expenses and be free of the golden cage.
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