Financial Independence for The Working Class

Intro

We all want to be able to provide for ourselves and our families without relying on outside help. What does that look like for the working class? Mr. Joseph Armah joins us today to share some great ideas on how to become financially independent while still active in the workforce.

Guest Bio

Mr. Joseph Armah is the founder and CEO of Armah Financial Services. He is also a mentor, a lifelong learner, and a financial management advisor.

Q: Who is the working class?

The working class varies across continents and countries. Broadly speaking, when talking about the working class, we are talking about those who are working and receiving income. Those who are not company owners, and those who have not retired yet, are generally seen as the working class.

Q: How do we become financially independent?

The first thing you have to do is to go through your values and goals. I say values first, because I think your values will determine your goals. You have to set clear goal for what you want to achieve. Money is usually a secondary goal. Most people want to do what they love, and money is just a way of achieving that. At the end of the day, set clear goals that will push you towards success.

Your goals will also change depending on the stage of life you are in. The first phase of life is the first 45 years. You are taking more risks and working hard. This phase is where you will gather most of your wealth. The second phase is 45-60. This phase is about conserving what you already have. Your income typically begins to slow down and you have to be careful with your expenditures. The final phase, 60+, is your legacy phase. What are you leaving behind and how will people remember you?

Q: How do we set financial goals?

The first thing is to think about your short-term goals first, before you get to your mid- and long-term goals. Retirement is a long-term goal, but going to school or buying a car would be a mid-term goal. For all of these though, the first step is to look at your budget. Whether you have a lot of income or just a little bit, you need to be able to budget in order to set financial goals.

Q: What are some opportunities for the working class to build wealth?

I like to focus more on net worth that monetary worth. Your assets are worth something, even if it does not show up in your bank account. The most significant thing for net worth is how much you own. That could be property or intellectual property or machinery or other assets. Figure out how much those assets are and how you can generate wealth. Then do not sit on that wealth. Invest in more assets and continue to increase your net worth

Closing Thoughts

Financial independence is not just for the wealthy. It is possible for working class people to achieve this as well. Get out there seek opportunities for financial growth. Think about your goals, write them down, have a budget in place, and take action!