Tips for Realizing Financial Freedom
On this occasion we will share about Tips for Realizing Financial Freedom, watch it until it's finished, friends.. Financial freedom, or financial freedom, is often the subject of conversation because this is the desire of most people. But what does this actually mean? In principle, financial freedom is a situation where we can make various decisions (for expenses) without worrying about our financial condition. Then the terms and literacy about financial freedom are now increasingly popular in Indonesia. In addition, the definition of financial freedom is a term that refers to the condition of someone who has sufficient passive income and is free from all debt.
Financial freedom is not just about retiring early
Financial freedom is a condition where you can achieve your dreams without worrying about your financial condition. Many associate financial freedom with early retirement. However, actually, it's just one of the things you can get when you have financial freedom. Your other dreams, whether it's traveling to exotic destinations, having a dream house, to being able to guarantee a decent life for your family, you can also achieve through financial freedom.
This is what's interesting about financial freedom. Financial freedom includes many things in life, not just a matter of retirement which is actually just one of the many components of your finances. This is because financial freedom is closely related to the values and goals you want to achieve in life.
In other words, when you are financially independent, you can buy "time" to be more free to pursue your dreams. So imagine, every time you wake up in the morning, you can say "I can do whatever I want today." Yup, financial freedom is a matter of how to manage and align money towards a life that allows you to do what you want. Whenever you want, with whomever you want, wherever you want, for as long as you want.
You could say that financial freedom is like having unlimited flexibility to achieve the happiness of life that you desire. Financial freedom is taking over your life and being the sole "captain" who determines the desired destination in life. Sounds awesome, right? What's even more interesting, everyone has the opportunity to achieve financial freedom, even for those of you who don't earn exorbitantly!
Okay, okay… It may sound grandiose to achieve financial freedom. Especially when you realize that you are an ordinary person. It seems impossible when someone with a meager income, a standard investment portfolio – or even none, even “dug a hole, plugged a hole” every month, can have financial freedom in the future. Well, the key to financial freedom is actually not a matter of how much money you have accumulated during your life, but having a "smart" mindset about money.
How to Outsmart Financial Freedom to Realize
To reach a situation of financial freedom is of course not easy, especially if it is not accompanied by preparation and a plan that is really mature and also a lifestyle that is quite economical. It takes high principles and discipline in managing finances from a young age. We must be wiser in spending.
Unfortunately, in our productive age, there are several desires/dreams and needs that we must fulfill for sustainability in life, where this also changes our discipline in managing finances.
What Can We Do To Be More Disciplined In Managing Finances?
First, know our financial situation in advance. In principle, financial freedom is not measured by how much we earn, but how much income can fulfill all our interests and dreams, without disturbing the savings we have.
Second, measure the alignment of our income and expenses every day, week, month, even year. If there are discrepancies and irregularities, then something must be synchronized between income and expenses. We can also outsmart it by looking for additional income through freelance assignments, opening a small-scale business, or becoming a Life Planner.
Third, try to re-survey what motivates us to be more disciplined in managing finances. Therefore high discipline can be initiated on the motivation or desire to be realized.
After understanding these three things, we can start to take other steps that can help us to be more disciplined in managing finances, such as having insurance as a safety net, investing as a means of building wealth to achieve financial freedom on the 3rd day. front.
What are the Methods for Realizing Financial Freedom Yourself?
There are ways that can be implemented to realize financial freedom, the following details:
Define Our Purpose
In order to make it easier to achieve financial freedom, it's better to start by narrowing down some important points regarding this, such as the nominal amount we need in a bank account, how to adjust our current lifestyle to reach that nominal, and at what age must this be achieved.
Create Cost Planning
By making a cost plan, whether daily, weekly, monthly or yearly, we can organize and manage our finances better. This is also one of the best ways to survey your financial situation. Are our incomes balanced with expenses or do we still need to reconcile.
To make the cost plan easier, we can try to categorize each expenditure that can be distributed. Apart from that, it is also necessary to separate between our interests and dreams so that the financial situation remains constant. Needs are things that are quite urgent, we really need them for the continuation of our lives every day. On the other hand, dreams are a subjective matter related to our desires and the fulfillment of which we can postpone for another time. Place expenses related to interests in the top position, the value of our focus is to avoid expenses that are less useful and can make us lose in the future.
Start a Simple Lifestyle
A simple or simple life is meaningless to be stingy with ourselves and those around us, but we must be wise in managing finances by spending as necessary. Thus, we can distribute income to a savings account with an increasingly large number.
Pay Off Debt and Credit
If you have debt or credit, whether it's debt to family or credit card debt, it's great to pay it off as quickly as possible. Separate a few percent each month for payment of payment.
As far as possible, reduce the use of credit cards to avoid piles of debt.
Unused Frequently Stop Subscriptions
Even though the amount is not much, deducting money from our bank account for subscriptions that we don't use often can make us lose money. Stop if we really don't use it, then the budget from the subscription can be channeled for other purposes.
Because there is an opportunity for inflation, the money we have now will not be of the same value in the next 5 years.
But if we invest the money, the value and nominal value will increase. What's more, now there are several options for investing, starting with stocks, gold, property, and others. We just need to dig deeper next time and choose an investment instrument that we are very good at.
Apart from the 6 techniques that we have reviewed earlier, if this matter is urgent, we can also achieve financial freedom by optimizing protection through an insurance program. Among other things, namely insurance for health protection from the effects of diseases that can strike at any time. We can make MiUltimate HealthCare (MiUHC) from Manulife Indonesia to make a choice to ensure that financial freedom is realized in the future.
Apart from providing the function of reimbursing hospital costs, through this product we can also experience the function of room charges abroad, additional annual limits for critical illnesses, and payment of benefits according to bills. So that we can focus on the treatment process when we get sick, no need to think about the financial situation.
Besides that, we can also use MiSmart Insurance Solution (MiSSION) which offers a 3 in 1 solution at once, starting with life protection, investment, to health.
By investing, having insurance, and working on ways to manage finances, we can be more disciplined in achieving our desires, namely living with financial freedom, or if westerners call it financial freedom.
That was a bit of information from us regarding tips on how to trick it in order to realize financial freedom, I hope it's useful and can help... more or less we apologize and thank you.
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