Yes, it is possible to become financially independent! Here are 6 steps you can follow that will help you reach your goal of becoming financially independent:

Step 1 - Educate yourself

Educate yourself on personal finances by picking up a good financial book, or find yourself a good financial planner.

Step 2 - Get out of debt

The first step to financial independence is to get out of debt. In order to do this, you will have to cut your expenses, increase your income, or do a combination of both.

Step 3 - Build a cash reserve

Build a cash reserve of 2 to 6 months worth of salary.

Step 4 - The best offense is a good defense

Protect your income streams by making sure that you have adequate life, home, health, disability, and auto insurance. Also, start investing in some safe, conservative investments that will grow over time.

Step 5 - Build and accumulate wealth

Now you are ready to start building your wealth and putting your money to work for you. Invest some of what you make into wealth building investments such as stocks, mutual funds, or your own business.

Step 6 - Generate "passive" income streams

Develop some "passive" income streams that will generate some extra cash, without a direct effort on your part. Come up with a plan to generate $100 a day in passive income, and be well on your way to financial independence!

Author's Bio: 

Tom Kelly is a Profession Business Coach that specializes in working with small business owners, entrepreneurs, and salespeople. He can be reached at (773) 907-0921, or at http://www.potentialinmotion.com.

Copyright © Tom Kelly, Potential In Motion, Inc.TM 2003