How to Become Financially Independent

What makes one almost more fearful than one’s own death is financial trouble. Nothing is more unpleasant for a person than not being able to fulfill the basic needs of themselves and their families.  For this reason, most people desire financial independence just slightly less than they desire a longer life.

However, it is one thing to desire it; it is something else to achieve it. A person with high labor income has many options to eventually become financially independent; but what about a person with modest income?

Nothing is impossible in this world if an individual is smart and determined. With a smart strategy, a person with a modest income can also become financially independent.

A smart strategy starts by investing in the stock market. Start with the best cheap stocks. While learning to ride a bike, it is best to start with training wheels. By favoring cheap stocks, if you misstep, you will not fall too far.

However, you will learn that cheap stocks tend to be little junky. When you are skilled enough to recognize good and bad companies you will want to make longer-term decisions by buying quality companies that will do the best over the longer run. These companies tend to be a little more expensive up front, but more lucrative over the long run on a risk-adjusted return basis.

Once you are skilled investor, you should seek out and buy the best high yield dividend stocks. No single characteristic is more indicative of a quality company than a generous, steady, and growing dividend. The fact that these firms also tend to be safe firms is icing on the cake.

Of course, it takes time and effort to find these outstanding companies. But you may be surprised how finding them is a straightforward endeavor. Basic fundamental analysis will uncover these exceptional companies. Basic fundamental analysis is time-consuming, labor-intensive, and it works by just a little bit. But it works. It is simple and dependable.

If you doubt this, do a search on the web for the best stock research sites. The best sites will not only tell which are the best stocks to buy, but they will also give you guidance on how you can find the best ones for yourself.

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How to Become Financially Independent

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