Financial Freedom
Financial Freedom

Financial Freedom Tips For Millennial 2022

Financial freedom is a state where you are free to use money to buy or do anything. This means that you are free to make decisions about the use of your financial resources. However, many people misinterpret financial freedom as a condition when they can shop or use money freely, even though financial capacity is not sufficient. There are also those who think that someone can achieve freedom if they already have a large income. In other words, freedom can only be done by the upper class. In fact, financial freedom can also experience by someone with low income who is not burden with any debt or obligations. Here are some tips for achieving freedom, summarize from various sources:

1. Change Consumptive Thinking

To get to financial freedom, you must start by committing to live within your means. One way is to change the way of consumptive thinking to be productive. That is, your spending is base on needs, not desires, let alone for the sake of prestige. By committing to live within your means, you can set your spending priorities. Its also build a strong financial foundation, leading to financial freedom. You also need to change the way you think by not assuming that wealth or high income is the way to achieve financial freedom. The reason is, no matter how much wealth or income, if your way of thinking remains consumptive, then you will never achieve freedom.

2. Know Your Financial Foundations

Regardless of whether you have just graduate from college or are preparing to retire, it is important to know your financial foundations. To do this, you have to calculate all sources of income, identify expenditure items (from primary to emergency). Even allocate funds for savings, protection, and investment. If you are confuse about managing finances to achieve financial freedom, you can look for information through various applications and content on social media.

3. Simpler lifestyle

Currently, the higher the income, the more a person’s lifestyle increases. This is generally not causes by a growing need, but a high desire to buy or try the things they want. This can distract you from the things that are a priority in managing finances, it can even lead you to fall into debt bondage. That’s why, having a simple lifestyle or adapt to financial capabilities is very important. For example, don’t ever think about traveling to a trending place on social media, even though you don’t have enough money to cover the cost of traveling.

4. Financial Freedom with Have Fixed Savings

The next way to achieve financial freedom is to have fix savings. The savings may not be taken for any purposes other than emergency needs. Start by committing to saving a certain amount, for example 5-10 percent of your income. You won’t interfere with that savings other than for emergency needs.

5. Financial Freedom with Avoiding debt

To achieve financial freedom, one of the important things you must do is avoid debt. Thus, if you still have debt, pay it off immediately. By not having debt, you can freely manage your finances, including using them without being burdened with the obligation to pay principal and interest on the debt. One way to avoid debt is to pay bills or installments on time. For example, credit card bills, vehicles, houses, electricity, credit, dues, and so on.

6. Find other sources of income.

The last step you can take to achieve financial freedom is to look for other or additional sources of income to support your main income. Here are some tips for achieving financial freedom. One thing to remember, this freedom will be easy to achieve if you have a real intention to achieve it.

Leave a Reply

Your email address will not be published.