It cannot be denied that financial independence (FI) is the indispensable factor for being happy in the whole life. But what does FI really mean? A common misconception is that it means being rich and wealthy and I believe there are many different definitions based upon different people and their circumstances. From my point of view, I think a true FI is that you have MORE MONEY THAN YOU NEED (not you want). That's very simple, huh? Let's imagine the day which you are free from worries about money as well as a need to depend on others for your livelihood.
Undoubtedly, it leads to two essential questions that you need to have the answers.
1. How much money do you earn? (income)
2. How much money do you spend? (expense)
I think if anyone cannot answer both questions, it's hard to achieve FI and you will always face with an uncertain financial state throughout your life.
I would suggest that everyone should have the personal budget plan for each year, at least having a clear view of our forecast finance, coupled with improving our cost effectiveness, controlling cost wisely between the projected and the actual. A tool, excel template file I downloaded from Microsoft Office Online (http://office.microsoft.com/en-us/templates/default.aspx) and edited a little bit to be more suitable for Vietnamese people who are living with family, will help you obtain FI easier.
Download here
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