13.02.2024 – 07:46

The Path to Financial Independence: A Journey of Mindset and Incremental Progress

The Path to Financial Independence: A Journey of Mindset and Incremental Progress

In the realm of personal finance, the concept of financial independence has gained significant traction. But what exactly does it mean to achieve financial independence? More importantly, how can anchoring this goal in your mind lead to tangible results? Let’s delve into the essence of financial independence, the power of the subconscious mind in achieving it, and effective strategies to overcome doubt and feelings of unattainability.

Defining Financial Independence

Financial independence is the state in which an individual possesses sufficient wealth and assets to sustain their desired lifestyle indefinitely without the need to actively work for income. It's about having the freedom to make choices based on personal fulfillment rather than financial necessity. Achieving financial independence often involves building multiple income streams, investing wisely, and managing expenses effectively.

Anchoring the Goal

Anchoring the goal of financial independence in your mind is crucial for several reasons. Firstly, it provides clarity and direction, guiding your financial decisions and behaviors towards long-term objectives. Secondly, it instills a sense of purpose and motivation, driving you to take consistent action towards your goals. When financial independence becomes a central focus, you're more likely to prioritize saving, investing, and pursuing opportunities for wealth generation.

Harnessing the Power of the Subconscious Mind

Your subconscious mind plays a pivotal role in shaping your beliefs, habits, and ultimately, your reality. By consistently visualizing and affirming your goal of financial independence, you can reprogram your subconscious mind to work in alignment with your objectives. Techniques such as visualization, positive affirmations, and goal setting can reinforce your commitment to financial independence and help overcome limiting beliefs.

Dealing with Doubt and Unattainability

Doubt and feelings of unattainability are common obstacles on the path to financial independence. However, they are merely temporary setbacks that can be overcome with the right mindset and strategies. One effective approach is to break down the journey into manageable steps and focus on incremental progress. This is where the concept of A, B, and C goals comes into play.

C goals are your ultimate objectives, such as achieving a specific level of passive income or reaching a certain net worth. You have no idea how you can achieve it. You do not know the path, the strategy, or the milestone. That is a C goal, a purposeful goal that is bigger than yourself and bigger than anything you have done so far. The goal needs to be attractive to you. You must be able to feel it, sense it, and imagine it. And it is okay that you have no idea how to achieve it.

The only thing that matters is that you anker it in your subconscious mind, and this mind will work for you from now on. The second thing to do is to take small, baby steps towards your goal. and this is where A and B goals kick in. An A goal is something you know well. Something you have done, and you know you can do more of it. Instead of writing one Instagram post, you decide to write two. That would be an A goal. Instead of investing 50 CHF per month in your pension plan, you now invest 100 CHF. You know what to do, how it works, and what you need to make it happen.

B goals are the intermediate milestones that mark your progress towards C goals. So here, you need to go outside of your comfort zone and tap into the unknown with little steps. While keeping your C goal in mind. You could say, for instance: Oh, I am buying a pair of new shoes every 3 months. How about buying new shoes only every 6 months and putting the saved amount as startup capital into an investment account?

You have to open an investment account. You have to inform yourself where to do it and how, so you are stepping out of your comfort zone and you will start new habits. Or you could say: What are the brands I am using daily? Like perfumes and skin care. How about me profiting from the financial success of these companies? How about becoming a shareholder, going to the general assembly, and getting a nice present of skin care there? These are B goals.

They move you in the direction of your final C goal, but they are broken down into steps that you can manage. You only need to repeat your behaviors twice. A goals are the every- day activities that help you achieve your B goal. By consistently taking small steps and celebrating each milestone, you can build momentum and confidence in your ability to achieve financial independence.

The 1 Percent Method

The 1 percent method advocates for continuous self-improvement by making small, incremental changes each day. By committing to improving yourself by just 1 percent daily, you can create significant transformations over time. This principle can be applied to various aspects of life, including finances. Whether it's increasing your savings rate by 1 percent, learning a new skill, or making healthier lifestyle choices, the cumulative effect of consistent improvement is profound.

In conclusion, achieving financial independence requires a combination of mindset, strategy, and perseverance. By anchoring the goal in your mind, harnessing the power of your subconscious, and embracing the 1 percent method, you can overcome doubt and steadily progress towards financial freedom. Remember, every small step counts on the journey to a more secure and fulfilling financial future.

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Karen Wendt

President of SwissFinTechLadies