Financial freedom could mean different things for different people. If you’re a young professional, your concept of financial freedom may be having a job that you love and pays the bills. If you’re in your mid-life years, financial freedom may be about the ability to retire before your 60s. Or if you’re living a retired life, it may be the freedom to travel places, just enjoying the retiree life.
But no matter what version of financial freedom you have, it’s clear that ultimately, it should allow you to do the things that matter to you because your financial capacity is sufficient. So, even if you go on yearly trips, you can still manage expenses related to your health and other aspects of your lifestyle.
Your journey to financial freedom may also take a shorter or longer time than the rest, depending on several factors like your savings or investment strategy.
An ideal way to save is not to spend more than what you can afford. If you keep using your credit card for groceries because all of your salaries have gone to paying for utilities, it may mean that your next paycheck will likely have the same fate.
On the other hand, you can break the cycle by not spending the money you are yet to earn. This makes budgeting a crucial strategy in managing your finances, wherein your goal is to save at least 10% of your monthly income.
Financial freedom is also easier to achieve if you set aside funds for investment so your money can grow. Since money invested is parting with money saved, make sure that you’re careful in choosing where to put your money. Keep your risks at manageable levels so you can continue building your financial assets.
For other helpful insights on how to complete your journey toward financial freedom, check out the visual guide in this infographic.