3 Ways To Build Financial Independence

We’re lucky indeed to be celebrating our nation’s Independence Day this week. But when it comes to our own financial independence, it’s often up to us.

I remember watching my mother struggle to make ends meet as a waitress working two jobs. It made an impression; I started my first job as a maid in a motel at age 14.

Confidence in our financial health hasn’t grown much since then. Only 18 percent of workers are very confident about their retirement prospects, the Employee Benefit Research Institute says, with one-quarter expecting they’ll need to save as 30 percent or more of their income -- a big number.

And today’s low interest rate environment may actually lead to more retirement delays, the EBRI says. Younger people face financial woes of a different sort -- unemployment runs as high as 17 percent for those aged 16-24.

The struggle to obtain financial independence can be daunting. But there are some things you can do right now to brighten your prospects:

1. Increase Income -- How can you get a pay raise at work? Make yourself more competitive. You can make this happen by expanding your skill set. Take a course at a community college, or obtain a new certification or license. If the boss turns your raise request down, your improved resume puts you in a better position to search for new job.
2. Think Strategically -- As a homeowner, you're the CEO of your own corporation. That demands smart, strategic planning. Where do you expect to be professionally in three, five, or 10 years? Are those expectations realistic? Manage your spending decisions by looking ahead rather than focusing on what your financial picture looks like today. Don't take that mortgage out or buy that car now if you don't expect to be in a good position to carry that debt in the future. The last thing you want, as CEO, is to find yourself sidelined by bad luck and forced to make massive changes.
3. Get Social Savvy -- Social networks say a lot about people’s values and who they are. What do yours say? Your networks can support you in getting to where you want to go, financially speaking. Do you hang out with those who hold similar financial values? Your social network isn't just about learning how your friends spent their weekend, but about sharing ideas and building morale as you grow together in financial strength.

July 4 should be a day when you make a new commitment to achieve financial independence. Set a goal and work toward it. The fireworks will surely follow.

Jennifer Openshaw is president of Finect, the compliant social media network for the financial industry, and author of The Millionaire Zone (Hyperion). Follow her on Twitter: @jopenshaw