Copyright © Chris Brown http://www.SuperiorIncome.com
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I know that everyone's financial dream is to be able to live their desired lifestyle while they relax, never working another day; we will define this with the phrase financial independence. Financial independence is very different from financial security; financial security means living the life that you choose to live but working to pay for it.

Wealth Building: Saving and Investing
In order to achieve financial independence you are going to have to budget your spending! You'd be surprised how much you spend – most people don't realize where their money is going. In order to budget, you are going to have to spend less than you make. Ideally you should save 20% to 30% of your income. This will give you a solid foundation of savings that you can build on and invest with.

Don't become convinced that if you spend your money on an expensive item you have made a decent investment. Be careful when buying a house; try to keep your monthly mortgage payments as low as possible. Also, cars, boats and other large ticket items can eat away your savings; provide yourself with the things you need but be sure to stick to your budget. Avoid debt; whether it’s debt from a credit card or from a loan, learn to avoid debts in every way possible. Don't ever use a credit card to overspend -- you should be able to pay the entire balance at the end of the month.

Wealth Building: Securing and Insuring
I once heard a well known speaker speaking about his method for securing his wealth and I thought it was quite interesting. The basic idea: break your income up into three parts. One part is for tax, one part is for security and the last part is for you to buy the things you want. I'd like to focus on security part of that. You must be sure that your wealth is secure and you have to know that if your income stopped tomorrow you would have adequate savings to recover from the unfortunate situation. Also, you need to have insurance. Life insurance is a must and you should also have health insurance. It's more likely that you will get sick or become disabled that it is that you will actually die. Insure your home as well; it's important to be sure that you have what it takes to make it through a disaster.

Wealth Building: Investing and Growing
It is never too early to start investing! Once you are in the habit of saving, you can begin to invest. Every month pay your savings account or investment account like it's another bill that you have no choice in paying. Don't spend your life waiting to start investing; the more time your investments have to grow, the larger they will turn out to be. Don't be a trader, be an investor. Find companies that you truly believe in and focus on the long-term wealth that your investments will generate. Carefully select an independent adviser that you can trust; check his or her references and make sure that your wealth is the main focus.

A final thought: When it comes to taxes you should pay as little as possible! Write off anything you can and keep up with your receipts. Hire a tax adviser to help you find ways to lower your taxes and find any possible exemptions.

Stay positive and motivated when it comes to wealth building! Even if your income isn't at the level that you are working towards, don't get discouraged! For most people it takes years and years to develop their financial independence. Eventually, your hard work pays off and you can begin to relax. Keep a positive outlook and feel confident about your growing wealth.