The Challenge of Financial Independence

Everyone wants to be financially independent. At first instance the term means the financial liberty which comes with the self earned income. You can earn this income either by working for someone or by working with someone on a certain project or by venturing with your own business. Every method helps you to earn your own money which you can use the way you like. But every method has its own pros and cons and every form comes with its own set of challenges. 

If you work for someone you don't have to bother about the initial capital that you should have to start the venture. You also don't have to care about the staff and employee management and other types of management responsibilities which come handy. You also don't have to bother about and search ways to increase your profit to keep your business running. 

But you have to work for your employer and you have to follow the rules laid down no matter how rigid or flexible they are. The returns that you earn also depend on the type of job in which you are. If you manage to secure a job with a reputed organization and manage to get a high profile then you might earn a handsome salary but that will be fixed and this will limit your financial independence beyond a certain limit.  Here you depend totally on your skills. And what if the company to cut its costs asks you to leave the organization? 

If you enter into partnership and work on a certain project with someone then it will give you a level of financial independence. Here you don't have to rely totally on your skills. Whenever you enter a partnership you work with other person and share your losses with him. But at the same time you have to share your profits also in proportion according to your partnership contract. What if there is a disagreement over a certain matter related to your work. There are ways to resolve them, no doubt, but here again you have to compromise over certain things, you have to overlook your interest so that you can carry on with the partnership in future. This method of financial independence thus is more challenging than being employed under an employer but at the same time give you more financial independence. 

Venturing your own business

This one is the most challenging job which you can take but this is the form which gives you the financial independence which we all crave for. This is the riskiest job which you can take. But as it goes higher the risk, higher are the returns. You can either take up a manufacturing contract or establish your own franchise or establish a new venture. 

The challenges are many. It might be possible that your business may not give you the returns in initial stages. Moreover own business comes with different management problems. But this is the mode which gives you the real financial independence.