People who spend their weekend shopping, posting their foreign tour photos on Instagram, buying whatever they like and many more such habits are envied by many. The envy might be so desperate that people tend to adopt such a lifestyle as their sole objective. It might not be a bad idea until the support is taken from debt or ancestral money rather than self-help. The greatest myth amongst millennials is that financial freedom is only for the rich. Thus, if you want to achieve it then simply earn more money. However, in reality, the key to financial freedom is within ourselves and with some basic changes in our lifestyle, it may be easily achievable. Don’t believe us?
Let us go through some of the practical instances of how one may achieve financial freedom:
‘Save first pay later’ is that vaccination which prevents your financial body from debt viruses. Whatever money you earn, at least 50% of it should go for your future and the rest for your liabilities and enjoyments. In normal circumstances, you enjoy first and save later, wherein by the end of the month there is hardly any money left with you for substantial savings.
Invest what you save, because the value of money is depreciating and the price of living is increasing. Inflation is unknowingly impacting our lifestyle and the worst part is, that there is no stopping it. The good news is that there is a vaccination of this virus called ‘compounding’, which is similar to a snowball effect. It is small at the beginning but more than substantial at the end. Therefore, keep investing and stay invested until your objectives are achieved.
Quit the unessential because if it isn’t essential why bother buying it? When we start with the ‘save first pay later strategy', we practically create a budget for ourselves and thereby restrict our expenses to a bare minimum. In this way, we cut down on all the unnecessary expenses such as frequent restaurant visits or buying unnecessary stuff. By doing so we understand two things, that savings are easily achievable and two is that you can live without the unnecessary stuff.
Cut down the debt evil for a fruitful future. Not all debts are evil. However, debts taken for expenditure rather than investment are damaging. Personal loans, credit card balances or unsecured loans with heavy interest are always alarming for your financial health. If they continue to exist in your life, it would be difficult for even the word finance to remain in it, let alone freedom. Therefore, avail debt for necessities such as a house or car but not for personal expenses.
Things are temporary but experiences are perpetual. Thus, prioritise experiences over buying gadgets or things. Experiencing lets you cherish the moment and mesmerises your soul till eternity. On the contrary, materialism, might give you notional happiness, which might not last forever. What’s more, if these things are lost or stolen, the pain is immeasurable. Therefore, instead of falling prey to impulsive buying of unnecessary stuff, opt for experiences that matter to you. Financial freedom is not just some jargon which every financial advisor might use to lure you into buying some investment plans, rather it is the source of your well-being.