While most of us talk about living in the moment or focusing on happiness instead of money, financial freedom is a mandatory goal. It ensures that we have enough in times of need, and we can go without slogging to survive for some years of life. Financial freedom is mostly about saving enough to sustain a lifestyle that you fancy. It also refers to retiring from work to enjoy or switch careers without worrying about finances. In this article, author and content writer Smriti Tuteja discusses some habits to help us achieve financial freedom.
About the author: Smriti is an author, freelance content writer and avid reader. She quit her six-year-long IT career to embrace her love for writing. Her article – How much money can I make as a content writer – went viral. She writes content across genres and takes pride in her ability to research and carve magic with words. Over her six years of content writing experience, she has developed a knack for technical and digital marketing content.
She also passionately writes about parenting and is currently working on her book. When not writing or reading, she can be seen running behind her two kids or learning Deutsch. Reader’s may recall Smritis is the lead author of this popular book published via freefincal: How to profit from content writing.
Other articles by Smriti:
- Starting a side hustle: what my journey taught me
- The ultimate guide to booking cheap flight tickets in India
- How to choose the right school for my child?
- How a minimalist lifestyle can help save you money
- Things you must spend money on, even if you are a minimalist!
- Getting your financial independence back after a maternity break
- How to teach kids about saving money
It sounds simple but remains a dream for many people who cannot achieve it. What is it that stops people from reaching their goals? Debts and sudden expenses are straightforward answers, but failing to meet financial goals is often ignored. These include unplanned and frivolous spending, lack of a futuristic goal, overestimating spending limits, etc.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Almost everyone comes across financial troubles and must figure out ways to sail through. However, many of us are still unaware of the right way to achieve financial freedom. At 30, I have already been through planning and re-planning. As I move towards my goals, here are the top ways to help one achieve financial freedom.
Know your goals: Financial freedom can mean different things to different people. For some, it may mean an early retirement, a big house for some others, and the latest bike and iPhone for someone else. Figuring out the goals and segregating them based on when you want to achieve them can help you develop a rational action plan. If your goals are early retirement or a good retirement corpus, you can begin by enlisting your expenses and sources of income. Setting milestones is a good idea to track your progress. Writing it down, maintaining records, and being specific about goals is the second most effective way to achieve your goals. The first most effective is winning a lottery.
Set a budget: This isn’t a new tip, and still,l most of us fail at just this step. Setting a monthly or weekly budget and sticking to it ensures that you spend only within your limits and spend what you intend to. Going overboard will only divert you from your goals. In this materialism-driven world, it is easy to lose track. Periodic budgeting and checking if you are moving towards fulfilling your goals will help you stay cushioned against your impulses.
Reassess your credit card spending habits: Online forums are full of people arguing about the merits of credit cards and the reward points system. Whatever benefits that credit cards may offer, they are ultimately debt traps. The whole idea behind them is to create an illusion of a higher spending allowance. They are counterproductive to wealth creation. If you have used your card for an unavoidable expense, try and pay the dues in full every month. This will prevent the interest from accumulating. It will also improve your credit score.
Commit to some savings: Automatic recurring deposit debits, auto transfer to an alternate account, increasing the contribution in the employer’s retirement plans, etc.. are some ways to create an emergency fund. This is just money that you set aside and not an investment. You can use it whenever there is an unforeseen expense. Whether these deductions are feasible or not is for you to decide based on incomes and mandatory expenses such as EMIs.
Jump into the investment bandwagon as soon as possible: We read and hear about the magic of compounding all the time. It refers to growing your money by making strategic investments. There is no right age to start investing. You can begin as soon as you start earning with a meagre amount that can increase as your income increases.
Remember, emergencies don’t see age or how long you have been in the workforce. With early investing and financial discipline, you can start moving towards financial freedom.
Do not hesitate to bargain: While memes and jokes have convinced us that bargaining is cheap, negotiations can go a long way to help you save money. As a consumer, it is your right to ask for a better price. Many businesses offer bulk buying or regular customer discounts. Do not assume that a certain business wouldn’t honour a request for negotiation. I have negotiated the school fees too and saved as much as INR 50k on admission fees.
Stay up to date by reading: Staying in touch with financial news is a good way to maximize your investment income. Read about the developments in the space to know if you need to make any changes to your strategy. It can also help you avoid unscrupulous agents who are always ready to take advantage of people who seem not to know much.
Maintain your assets: Maintenance doesn’t need to stay limited to big things like houses and cars. It is good to maintain even the smallest things like clothes and shoes to help them last longer. The savings from this step may seem insignificant but add up pretty fast.
Maintain your health: Your body is your most valuable asset. It will help you earn and grow as long as you are fit. It is good to invest in regular diagnostic tests and fitness programs to ensure that the daily grind doesn’t take its toll on you. Do not hesitate to spend on a healthy diet and exercise. It will also help you stay clear of emergency medical expenses.
Adopt a minimalistic approach to living: It may seem like a fad of the modern world to talk about minimalism when our ancestors had been doing that for years. However, the increase in disposable income and the rise of capitalism and consumerism have created numerous money outlets for families. Knowing the difference between needs and wants can help save a lot of money.
There is no magic key to financial freedom. Little changes can make saving a habit, and adding investment knowledge to the equation will help you grow well and reach your goals.
All the best!
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)