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Financial Freedom

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Written by   80
1 year ago

What does it meant when we say Financial Freedom?

From the word itself, it is being free from financial burdens and having enough money to support one self independently.

How to achieve financial freedom

1. Manage your expenses

If you want to achieve financial freedom, you then have to identify the difference between your needs and your wants. And keep in mind that needs are more important than your wants.

Needs - these includes the things that we need in order to survive, this falls under the physiological needs. Physiological needs are food, water, air, sleep  Another example of needs is safety needs which includes shelter and health.

Wants - these includes things that are not necessary for us to survive jusy like, car, jewelries, etc. Actually their are a lot.

- We need to prioritize more in our basic needs like foods, water and things that are mentioned above.

2. Learn how to save

Budget your money. Let the equation of your money will be, income less savings equals spendings not income less spendings equals savings. Let your savings be your priority, set a percentage on your income to be your savings, and make the rest of it as the money you are going to use for your daily needs. No matter how low or high your income is, the amount of your savings will still matter.

3. Start paying off your debts

Debts trigger us to achieve our financial freedom. If you can't pay your debts in an instant, then have a short term goal by paying it on an installment basis until such time that you already paid them off. Note: If you can pay them off as soon as possible, then do it.

4. Live within your means

If you can't afford something that is not even necesarry, then do not go for it. If having it lets you need to borrow money, then you're just letting yourself to have burden soon on paying that debt, and will make your financial freedom be achieved slower.

5. Limit yourself from going out

It is really automatic that the moment you get of of your house, you can't help but start spending money on unnecessary things. Going on a mall, strolling. Treat yourself once in a while but do not do this almost all of the time. You will run out of money in a short span of time.

6. Avoid online shoppings

Uninstall your online shopping applications in your phone because you will be triggered all the time to buy something because most of the time online shoppings offer sales. And remenber that, not because it is on sale means that you have saved up some money. If it is not necessary then it is always be considered as spendings but if necessary then you have saved up money.

7. Having a retirement plan

When the moment comes that we retire, money that comes in, will be lessen or worst case is that there is nothing at all if your source of income is just your job. And take note that the cost of living when you still have work will still be the same, so it is important that there is still a portion in your income that will be intention for saving.

Never let your children be your retirement plan

Here in the Philippines, we can't deny the fact that some people will now rely on their children for their daily needs. Yes, children may give them financial support but it is never requirement. Your children will be having their own families and they are now their priorities.

8. Invest

Engage to stock market or any trading like foreign exchange and cryptocurrencies. If your not familiar with these, and you are interested then educate yourself.

Having a small budget at first is just okay, never underestimate the power of compounding (the interest of your money will make interest and so on), with the proper discipline, you will surely achieve your financial freedom.

9. Be healthy

As the saying goes, "HEALTH IS WEALTH" it is really true because if you are not healthy then all of your hard earned money will just go to your medications, so stay healthy, watch your diet and lifestyle. Take away your vices if you have and live a healthy life.

If you have discipline within yourself, then you will thank yourself one day for planning on how to have a financial freedom.

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Written by   80
1 year ago
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Comments

It was awesome. I don't know how to start and still it's hard for me for cash budgeting. I think this could help me start slowly in order to learn how to budget what I have since I am a single mom of one but living with my parents. I am working but the pay is not that much for now it's not easy to look for a job so I stayed. I am sharing whatever I earn and they help me too for they have their pension not too big but I think it can help us to our daily expenses. Thank you sis for this article. Keep it up

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1 year ago

Your writing was good we need to save money for our future because not all the time we had work to rely on, and this pandemic I can say that we had a chance to save more since we were not able to go to the mall whenever we got our salary and of course we just buy what we need most especially foods and let's take care of our selves as what you've mention health is wealth. Let's think of our future don't just defend to others!

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1 year ago

Gracias por tus palabras, por enseñar y dar tu punto de vista. Así se aprende un poco. Recopilando un poco de sabiduría de todos podremos sacar nuestras conclusiones y tener la satisfacción de lograr nuestros objetivos. Gracias de nuevo

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1 year ago