Be on Your Way to Financial Freedom

“Financial freedom is available to those who learn about it and work for it.” –Robert T.Kiyoski

Financial freedom is one of the keys to a good life. 

When you are empowered with the resources you need, you can easily leverage finances effectively to help you maneuver through life’s challenges and obstacles. 

Learn more about what this means in today’s blog. We hope you’re as excited as we are so let’s dive right in! 

What is financial freedom?

Financial freedom is living the life that you want to live, with the choices that you want to make, without the monetary restrictions that can hinder you from doing so.

Financial power is the medium for earning a good living which empowers you to enjoy a healthy lifestyle that impacts every aspect of your life- people you meet, family security and opportunities for the future. 

Financial freedom is crucial when it comes to your vision of how you want to live. Everyone has aspirations and dreams of:

  • how they want their life to be,
  • mode of living, 
  • Source of income and much more. 

Fiscal autonomy is all about becoming the chooser. You become the one who decides how to pave the way to your desires.

How to achieve financial freedom

We have to understand that financial freedom is a relative term. People may have different definitions of what it is. 

For some, it can mean living a simple life, free from a lot of wants. For others, it may mean traveling and going on vacations. For some people, it may mean living a luxurious lifestyle. 

All of us want financial freedom. But what does it really take to be financially free? Here are some suggestions:\

  1. Set Your Financial Goal

Define your financial goals, list them down, and be very intentional about them. You may want to consider some factors when mapping out your targets to make them more specific. Here are a few:

      • Social Situation – Where are you currently situated financially? Are you satisfied with it? What are the next few steps for your situation to improve?
      • Professional Experience – How much experience do you have? How much experience do you need? Will further education help?
      • Life aspirations – What is the timeline for you to execute your goals?
    1. Set a monthly financial limit

    Do you have a monthly budget? Are you spending your salary randomly and just based on “feel”? Have you set a maximum amount you can spend for every month?

    Expenses can be divided into two categories:

        • Essential Expenses- These are the basic necessities. It includes the needs that we cannot live without. Examples would be groceries, rent, utilities, etc.

    You have to set aside money to cover these expenses because they are needed for survival and sustenance.

        • Miscellaneous- This category includes secondary needs and “wants” which can enhance the quality of your life. 

    Your hobbies, collections, online shopping, and other periodic indulgences fall into this category. They are not necessary but they make you enjoy a little bit more.

    1. Consider the number of dependents in your family

    Everyone’s family situation is different. For some households, most of the members may be employed which means the family is not solely dependent on one provider.

    On the other hand, some families only have one breadwinner. In this case, the one who earns may also be supporting his/her parents and siblings, aside from his/her own family members. 

    Based on the number of your family members, you can decide on how you’d like to realign your budget.

    1. Financial Education

    Financial education is one of the most important components of financial freedom.

    Therefore, it’s crucial to gain the necessary knowledge to handle your finances. Now, how you can do that?

    Go for financial programs, online courses or webinars. Some FinTech platforms, like SAVii, organizes Financial Education Webinars. The knowledge you will gain from these platforms are valuable to your journey and can prepare you better.

    1. Evaluate what really makes you happy

    Now that you have reexamined your budget and set a limit to your monthly expenses we can focus on why financial freedom is one of life’s biggest aspirations.

    For one thing it gives you (you guessed it right): FREEDOM.

    Not having to worry about limitations on what you can spend on and when you can spend are problems that will not consume you anymore if you are financially free.

    Financial freedom means living in your own terms, doing more of what you want, and being able to provide, worry-free, for yourself and for your family.

    Your finances should fuel your passion, help you out with your relationships, and enable you to extend a hand to those who need it. Your finances must allow you to learn, explore, and grow. Financial freedom happens when money becomes merely a tool for your joy and happiness. 

    There you go, buddy. We hope these tips can help provide your roadmap towards financial freedom. Watch out next week as we give you more tips and insights to living your best life yet!