Achieving Financial Independence: the power of Momentum

Habits are such a powerful force. According to a quote by John Dryden – “We first make our habits, and then our habits make us.” Your habits can predict where you will end up if you keep going the way you are going. This holds true in achieving financial independence, as well as every area of life, every goal we set out to achieve. It determines whether we are making progress towards it or it is just a pipe dream.

The secret to achieving any goal or dream is taking a step towards it every single day, no matter how small. Doing the same thing day in and day out makes it a habit. You start to do it automatically without having to plan for it. You just do it. As you keep doing it, you start to gather momentum. Your efforts begin to aggregate and gather speed, moving you faster and faster toward your goal.

In the case of achieving financial independence, as you start saving and investing, reinvesting your interest for more returns, your interest income starts to increase and go up at a faster pace, gaining momentum. As you keep adding to your portfolio and reinvesting your interest income, you gather more momentum. By the time you have gathered enough momentum, you become like a fast-moving train, virtually unstoppable.

It all starts with forming the right habits, and doing the right thing consistently until it becomes second nature, in this case paying yourself first. If you can discipline yourself to pay yourself first every time you receive your salary, you will be amazed at how much wealth you accumulate by following this simple discipline. So rather than remain stuck in habitual spending, you become a habitual saver.