financialtreat – will explain about Here’s Proof You Achieved Financial Freedom that you will get in the following article. Let’s look at this article carefully!
Achieving financial freedom or financial freedom for some people is a life goal that wants to be achieved at a certain age. This financial freedom can be in the form of having a business for a long period of time, welfare living in retirement, to living a comfortable life without thinking about income targets every year.
This moment you can achieve with the effort made from now on. For those of you who want to realize financial freedom, there are some signs that indicate that you have achieved it. Read more through the following article
Habits to Have to Achieve Financial Freedom
Broadly speaking, financial freedom is a condition in which a person experiences freedom in his finances. That is, the person has wealth that can meet all his needs without having to work harder.
For those who have achieved financial freedom, the assets they have can make money that is worth more than their cost of living. Therefore, it is important for you to know and understand financial education.
Managing and managing finances wisely must certainly be done early, no wonder that as a child parents have introduced how to save through a piggy bank or save in school. If applied seriously, slowly you will definitely soon achieve financial freedom in the future. More clearly, here is a description of the habits that can lead you to financial freedom.
Write Financial Goals
The first habit that you can apply from now on is to determine the goal of financial freedom that you want to achieve clearly. Launching from Investopedia, writing goals clearly helps the desired financial freedom one step closer.
Write down what life goals you want to achieve, how much savings you want to have, what kind of lifestyle you want to live, and at what age you want to realize. You can write it in a notebook, journal, or sticky note. Do not forget to periodically add writing about what achievements you have achieved.
Create Automatic Savings
Furthermore, this one habit can also help you achieve financial freedom from a young age. Getting used to saving automatically can start with setting aside money on the same day you receive your salary. This is done so that you are not tempted to use it to buy something else.
In addition, budgeting savings money at the beginning also makes you have an emergency fund that can be used at any time when needed. Make the amount of money set aside, you can adjust to the amount of income and expenses you need each month.
Not only savings, from now on you should also be able to learn to invest. This investment is one way for you to achieve financial freedom. The way investment works itself is that you will save money in the form of investment instruments to be developed in order to make a profit in the future.
This investment instrument can be in the form of stocks, mutual funds, gold, property, land, to various other options. You can choose investment instruments that experience growth over time. This is because the investment is aimed at the long term.
Have you ever heard that frugality is just as stingy? This term is not entirely appropriate. Basically, when someone chooses to live a frugal life, especially about finances, it means that the person is trying to be wise in managing his money.
This can also be referred to as frugal living or frugal lifestyle. This lifestyle you can get used to from now on if you want to achieve financial freedom from a young age. The frugal lifestyle can be interpreted as being aware of spending but staying focused on existing priorities.
Always Take Care of Your Health
Having a healthy body can also help you in achieving life goals to be able to have financial freedom. This is because health is also part of the investment that is no less important for our lives in the present to the future.
When the body is healthy and also fit you will also have more time to move and be productive every day. But when it happens the opposite, you will also have difficulties because of health problems that are being experienced.
Signs You’ve Reached Financial Freedom
Well, now we start to get into the discussion of signs/characteristics that you have achieved financial freedom. Of course, after doing habits that can lead you to become a financially independent person, you must be wondering when you reached that level. Here’s the explanation.
Health and Life Covered Insurance
The main thing that must be owned by someone who is financially independent is self-protection. Insurance is important because insurance protection helps to minimize the risks that may occur in the future.
Without insurance protection, these risks can have a big impact on your financial stability. Health insurance helps you to pay for hospital costs without burdensome finances, life insurance helps families to keep needs fulfilled if one day the worst happens, and if you don’t want to spend expensive costs to repair car damage can use vehicle insurance.
Not Worrying about the Future thanks to Investment
Keeping money in savings will not provide benefits and cannot beat the increase in annual inflation. Investment is one way to achieve financial independence. Investments can be made in any form, the most important thing is that the investment must provide a return above inflation.
From this investment management, you will achieve financial awareness. Investment is also closely related to protection, both of these things are a sign that you are financially independent or not. Without protection, investments that provide such income are vulnerable to risk, which may one day eliminate your source of income.
Retirement Guaranteed with a Pension Fund
Who doesn’t want to be safe in old age? Who doesn’t want to be safe in retirement? Everyone wants a financially secure old age. Retirement is an important time in everyone’s life.
The amount of income and savings while still working will affect a person’s retirement. The sooner you start thinking about retirement, the greater the savings you have in your old age.
Preparing a retirement fund should be done early when it is still in the productive period. In addition to saving in the Financial Institutions Pension Fund (DPLK), retirement can also be prepare with investments.
There are several investment products that you can choose from, such as deposits, mutual funds, bonds, gold, to stocks. Products that are safe but only have the highest return of about 6% deposits. Want to get a big return but also a big risk, manage your money in stocks. Choose an investment product that suits your goals and risk profile.
Education Fund guarantees Children’s Education
All parents certainly agree that education is important for a child. With a good education, a child is expect to live more prosperously and successfully than his parents.
It is necessary to plan for children’s education funds starting early because the cost of education in Indonesia continues to increase every year. Education insurance will help the child’s education in the future. Ensuring the future of the child is one of the conditions toward financial independence. By having education insurance, it has manage to meet one of the conditions to be financially independent.
Owe to Productive Activities
Debt can be a dangerous thing if the use of debt is for consumptive things. However, inevitably life will not be far from debt, either personal debt to friends or debt to financing institutions.
One of the conditions for financial independence is to free life from debt. However, if the debt is converte into productive assets and can provide income, then you have start towards financial independence. It is wiser to owe for business capital because behind productive debt there are results that you can enjoy.
Emergency Fund becomes Savior
Finally, emergency funds become an investment activity that is very important for your life. This activity you can do by saving half of the basic salary every month. With these savings, there is no need to worry anymore if suddenly requires large funds. On the other hand, if there is no sudden need in your life, the emergency fund savings can be use as future savings.
Financial independence is the period when a person has manage to meet financial goals in life, such as education for children, preparation of funds when they are retired, and also insurance that mitigates risk. With the fulfillment of these needs, it is certain that it is classified as financially independent.
Also Read Financial Independence:
- Private Finance: Definition, Advantages, Disadvantages
- Understanding Financial Planners and What They Do
From now on, have insurance as a protection measure. Make old age happier with retirement funds. Get rid of anxiety within yourself with investments. Facilitate children’s steps towards the future through the preparation of educational funds. And create debt into a source of income.
Well, that was the explanation of the signs/characteristics of whether you have achieved financial freedom or not. Keep in mind, that the process of financial freedom is not easy and will not happen in a short time. Therefore, there needs to be patience and tenacity. Good luck!