3 Habits to Avoid Credit Indebtness and Make Yourself Financially Independent

Aside from reading and following some of the tips in becoming financially independent, I also learned to keep on following a certain a habit. As I developed this habit of mine, it totally helped in gaining my financial independent.

Here are the 3 habits that made me achieved my financial freedom from credit indebtness:


1. Keep one credit card as a transaction tool.

You don’t have to keep a lot of credit cards for many transactions right? When I did keep a lot of credit cards in my wallet, in time, it made it difficult for me to pay for all the expenses. I lose control of my expenses as I keep on depending on my card for many transactions. It always tempted me to spend more. It is very tempting. In time I got into a huge debt and it was not very pleasant. Once credit card is already more than enough to fulfil your needs, no need for two or more. Whenever you spend, you will only increase your debt. And once you used up all the limit in the card, you will then be forced to pay up for the balance before using it again.

2. Make a cash flow budget after every pay check.

After experiencing a very unpleasant experience of getting in debt, I learned to take control of all my expenses and transactions. I made a cash flow budget after every pay check that I got. With this, I can pay up all of my monthly bills the first and then the amount of money left will then be available for savings, or may be a little spending spree. When you are already able to pay up your monthly expenses, you will no longer have to worry then about these expenses. This method is working well with me as it has given me much information as to how many more amounts left that I could get to save.

3. Save money before buying or taking advantage of credit promotions.

The best thing to make a habit of doing is to save before purchasing. But then, this is not always possible. I exploited a credit promotion at 0% and took this time lap to save and pay the total amount only at the end of the promotion. Because of this, it gave me the possibility of enjoying the purchases I have made while saving for it. Another way that I did was buying using my credit card and transfer the balance on my other credit card presenting promotional rates. The interest rate on this one is not eliminated but it does remain reasonable. These two methods work well with me, but it is much smarter to avoid traps and not abuse it because you will likely to become indebted again. It is better to avoid earlier than later.

These 3 habits of mine helped me achieved my financial freedom. If you do try to follow these habits, you can definitely gain your financial freedom too. Cross out try, do it!

8 Tips to become Financially Independent

When I was not yet financially independent, I totally struggled to become one. I researched a lot of books, financial advices and a lot of books for me to be able to learn on how to save more than what I have already done. Well, it was no easy task but fortunately I was able to achieve it.


As I was researching for possible ways on how to become financially independent, I stumbled on these 8 tips that greatly helped me onto becoming what I have achieved now.


Here are the 8 tips to become financially independent:


  1. Set specific goals.

Setting my goals defined who I am today. Whenever I get stressed out or feeling hopeless, I just get to remind myself of the goals that I needed to achieve and it lifts my spirits up. My goal is like my mantra. I keep repeating it inside my head, the one that I wanted to achieve and it fuels my energy to achieving the goals that I want to achieve.


  1. Consistently spend less than you earn.

Yes, this is really helpful. Before, I always spend on the same level as my income on some unnecessary things. And these spending for some unnecessary things often leads me to be bankrupt. Or worse, in debt. This has to stop. I learned this the hard way. When an income of mine failed, I was not able to save up anything. Much worse, I did not have any savings.


  1. Create a spending plan.

Spending cannot be truly avoided. We will really have to spend. Our basic necessities needed spending. What are these basic necessities will be? Food, clothing, shelter and other things. Other unnecessary ones needed to be cut out. I was able to achieve saving when I was able to cut out spending on unnecessary things. I created a spending plan. In my spending plan, only the necessary ones are present. Because of this spending plan of mine. I was able to save a lot.


  1. Invest.

Other ways to become financially independent is to make sure that there will also be something that will be returned to your savings. You will have to invest. I invested on a lot things. Of course, I picked those trusty ones that I am sure that will benefit me in the future. It may be gamble but it is worth the try.


  1. Stay invested.

When you chose the one you are interested to invest in, do it. I did not wait anymore for the market to be really strong. Even if the market is running low, I gambled, I continued to stay in.


  1. Diversify.

It is important to diversify our assets. I spread my investments on several categories, this way I can minimize the impact of the downturns of a particular segment.


  1. Use tax-favoured accounts.

Retirement plans and individual retirement accounts are the most efficient way to build toward financial independence.


  1. Bulletproof your independence.

Naturally, as you collect more money for financial independence, you will have to protect it. I make sure that all of my savings are all protected by the way of using insurance.


And that is are the 8 tips to become financially independent. I am hoping that these tips will help you gain financial freedom as it did mine. Be frugal and achieve financial freedom!

The Eight Steps Towards Managing Your Own Money

We all wanted to be financially independent don’t we? Yes, we do. But how do we start from it? Firstly, we don’t know anything at all about being financially independent. What do we need to do to be able to achieve it?


For many years as I have been employed, I constantly save up my money. I wanted to save for my future. I thought that having to save up in the future will make me financially independent but I was wrong. I am still trapped. Whether we you are a doctor, a lawyer, a salaried employee or any other professional, we are all trapped. Trapped in what way?


I discovered that I am trapped when I read a book Automatic Wealth by Mark Morgan Ford. In the book, it stated there that:

“At the end of the day, you are charging for your time. And if you want to make more money, there are only two ways to do it:

  1. Charge more per hour.
  2. Work more hours (though there are only so many hours you can work and still have a life).”


You got that right. Even the professional and top executives, they don’t really get that much. True, they may earn a lot more as they improve their skills but it would also mean that they need to work and render more hours compared to before. To be truly free of your financial matters, you must have multiple streams of income and that each one of them should be enough for you to live on.


Another thing on the book Automatic Wealth:

“Natural money makers make most of their money by practicing a single skill within the context of a single industry. Don’t be fooled by financial gurus who tell you otherwise. But they eventually develop many streams of income.

Many master wealth builders I know enjoy a dozen sources of income. Some are modest, some amazing. That’s the great thing about creating cash flow. Although you never know what will happen with any individual income source, if you get enough of them started, one will turn into a river.”


I do agree on what Mark Morgan Ford said in his book and I have learned a lot from it. And because of it, I have followed these 8 rules for financial independence:

  1. You can’t truly trust anybody but yourself with your money.
  2. The harder someone tries to convince you to trust him, the less you should.
  3. However good a track record someone has, never believe that he/she can’t suddenly start losing your money. In fact, if you are like me, the moment you invest will be the moment his/her track record starts falling apart.
  4. All markets rise and fall. Don’t ever believe anyone who assures you that they can predict the future.
  5. If you don’t learn to spend less than you make, you will never have peace of mind.
  6. Most of what you buy when your income is above $100,000 is optional. Don’t fool yourself into thinking you need a big house or a fancy car.
  7. In making financial projections for yourself or a business, always create three scenarios:

One that shows what things will look like if everything goes as hoped;

One that shows what will happen if things are mediocre;

And one that shows what will happen if things fall apart.

  1. Know that the third scenario is optimistic.


These are all easy to do and if I have followed these all well, you can too!


An Introduction

What does it mean to be financially independent? When you do see that term, what usually comes up into your mind? For me, it is this: “To no longer have to work for money to provide for my basic needs.”


Well, it’s right, right? Being financially independent would really mean from the term independent. You yourself will no longer be dependent financially.


The Concept

To be able to understand the concept more, I share to you a concept about a detailed plan for reaching that “crossover point”:

“The Crossover Point provides us with our final definition of Financial Independence. At the Crossover Point, where monthly investment income crosses above monthly expenses, you will be financially independent in the traditional sense of that term. You will have a safe, steady income for life from a source other than a job.” —Your Money Or Your Life

So that was it. Financially independent people are the ones who are not dependent anymore with one of their income to survive because they already has a lot. They already make enough money that they don’t have to work anymore. And that is me.


My trick? Well, it was so simple. Basic terms: Income and Expense. Most of us have moderate income and generally almost the same level of expenses. Even if we do have larger income, we would still generally get the same level of expenses. So what will we save? Almost nothing right? And that is the problem. All you need to do is to drive your expenses down.


I always treat my income as my savings. Even if I have a lot of expenses to pay off like the monthly bills, electric bills and others, I still do think of my income as my savings, not considering them. And then I would think, how much I think I will get into that account in a year? Yes, my income would definitely be there but I should also think onto how I can add the money that I have put there. I also will need to cut a lot of spending so as to have an additional amount to be put inside my savings.


I was able to cut on reducing my monthly expenses and was able to save a lot. As the amount of the money that I have spent lessened, my savings amount increased. It is not at all that hard. Aside from saving more of the amount that I used to, I also tried to have another income. This way I will have many sources for more money and that is what have made me financially independent for future years that came.


As I was able to successfully establish myself as financially independent, I would like then for you, my followers to be able to learn the things I have learn and to establish yourselves in becoming financially independent too. This website is dedicated for you to learn the things I shared, the tips and other advices. Some of these things may not be easy for you but if followed and done well, I can guarantee you that you will become financially independent like I am.

Leandro Ortiz