How do you structure your finances to be less dependent on your job

By Jessica Dosseh

Overall, the key to reducing your dependency on your job is having a diverse range of income sources and being strategic about managing your money.

Structuring your finances to be less dependent on your job (checklist).

When it comes down to it, we all want to be free of the shackles that come with a 9 to 5. For many of us, the issue isn't that we are not passionate about what we do or that we don't have the desire to contribute to society. The issue is feeling like our whole life could be stripped away from us simply based on the decision of a random person in a corporation.

There are one hundred and one ways to think about what you should or shouldn't do, but the key to reducing your dependency on your job is to create a diverse range of income sources and to be strategic about how you manage your money.

It's that simple.

The hard part will always be creating and maintaining your personal financial system.

As you continue to improve your financial literacy, revisit these steps to help you manage your financial health over time.

• Create a budget: I mean create a budgeting system. You've probably heard this a thousand times, but it's for a good reason. Without a good fundamental strategy, the rest of your system will continuously break over time. Outline your income and expenses—outline cash flow. Add automation. Identify what to cut and what to keep. Build a system that makes it easier for you to enjoy your life instead of punishing yourself for living.

• Reduce your expenses: Okay, we know this is a hard one. With rising costs, it can be tough to cut anything. If you can't cut anything, then think of it like a mindset thing. Tell everyone you know that you're becoming a minimalist for a year, and try living without needing anything apart from food and shelter.

• Build an emergency fund: Open a high-yield savings account (HYSA). Connect it to your checking account, then automate it so that your checking account sends one dollar to your HYSA daily. Periodically increase the amount that's transferred. That's all you need to do.

• Explore other sources of income and diversify: This is where the bulk of the weight is. It's the root question that a lot of us are asking ourselves. How do we make more with so little time? One of the answers is to build passive income, but it's important to remember that passive income isn't passive in the beginning. So pace yourself as you build out your funnels, invest, and collect assets.

• Invest in your education and skills: Investing in your education and developing new skills doesn't necessarily mean going to college. Invest in knowledge, not institutions. Expand your perspective, expand your network, and expand the spaces you are in so that you can see opportunity instead of waiting for it to come to you.

• Invest in your retirement: We'll all be old one day, so protect yourself as you age. Tomorrow will be here sooner than you think. It is important to start saving for retirement as early as possible. Consider contributing to a 401(k) or IRA account to take advantage of compound interest and tax benefits.

• Create a debt repayment plan: If you have high-interest debt, such as credit card debt, it is important to create a plan to pay it off as quickly as possible. Focus on one thing at a time to reduce a bit of the stress. Use the snowball or avalanche method or whatever plan works best for you.

• Review your insurance coverage: Make sure you have adequate insurance coverage to protect yourself and your assets in case of an unexpected event, such as a job loss or illness.

• Seek financial advice from a professional. We all need a bit of help, and you don't have to do everything on your own. A financial planner or advisor can help you create a comprehensive financial plan that addresses your goals and needs, but make sure you do your research before you trust someone with your finances.

By implementing these steps, you can create a financial plan that will eventually help you be less dependent on your job and provide more financial security. Take it day by day.