Smart Ways to Achieve Financial Freedom

Financial freedom, or financial freedom , is often the subject of discussion because this is the dream of many people. But what is actually meant by this? Basically, financial freedom is a condition where we can make various decisions (for spending) without having to worry about our financial situation.

Achieving financial freedom is certainly not easy, especially if it is not accompanied by careful preparation and planning as well as a frugal lifestyle. A high level of commitment and discipline is required in managing finances from a young age. We also have to be wiser in spending.

Unfortunately, in our productive age, there are many wants and needs that we must fulfill for survival, which also affects our discipline in managing finances.

What Can We Do to Be More Disciplined in Managing Finances?

First , understand our financial condition first. Basically, financial freedom is not measured by how much our income is, but rather by how much of that income can fulfill all our needs and desires , without having to disturb the savings we have.

Second , measure the balance of our income and expenses every day, week, month, even year. If inequality occurs, there must be an adjustment between income and expenditure. We can also work around this by looking for additional income through freelance work, opening a small business, or becoming a Life Planner .

Third , try to re-evaluate what things motivate us to be more disciplined in managing finances. The reason is, high discipline can start from motivation or dreams that you want to realize.

After understanding these three things, we can start taking other steps that can support us to become more disciplined in managing finances, such as having insurance as a safety net , as well as investing as a means of building wealth to achieve financial freedom in the future.

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How to Realize Financial Freedom Yourself?

There are several ways you can achieve financial freedom , as below.

1. Describe our goals

In order to make it easier to achieve financial freedom , it would be a good idea to start by narrowing down the important points related to this, such as the nominal amount we want in our bank account, how to adjust our current lifestyle to achieve that nominal amount, and at what age to do this. must be realized.

2. Make a Budget Plan

By making a budget plan, whether daily, weekly, monthly or annually, we can organize and manage our finances better. This is also one of the best ways to evaluate our financial condition. Is our income in balance with our expenses or does it still need adjustments?

To make budget planning easier, we can try to categorize each expenditure that will be allocated. Apart from that, it is also important to distinguish between our needs and desires so that our financial condition remains stable. Needs are urgent things that we need to live our daily lives. On the other hand, desires are subjective things related to our tastes and we can postpone their fulfillment at a later time. Put expenses related to needs at the top of our priority scale to avoid expenses that are less useful and could harm us in the future.

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3. Start a Simple Lifestyle

Living simply does not mean being stingy with yourself and those around you, but we must be wise in managing our finances by spending in moderation. So, we can allocate income to a larger savings account.

4. Pay off Debt and Credit

If you have debt or credit, whether debt to relatives or credit card debt, it would be better to pay it off as quickly as possible. Set aside a few percent each month for repayment.

As much as possible, reduce credit card use to avoid accumulating debt.

5. Stop Subscriptions That Are Not Frequently Used

Even though the amount is not much, deducting money from our bank account for subscriptions that we don’t use very often will be detrimental. Stop if we don’t use it, so that the budget  from the subscription can be allocated for other purposes.

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6. Invest

With the possibility of inflation, the money we have today will not be worth the same in the next five years.

However, if we invest the money, the value and nominal value will continue to increase. Moreover, currently there are many choices for investing, starting from shares, mutual funds, gold, property, and so on. We just need to study it further and choose the investment instrument that we know best.

Apart from the six tips that have been discussed, we can also achieve financial freedom by maximizing protection through insurance programs. One of them is insurance to protect health from the risk of disease that can strike at any time. We can use MiUltimate HealthCare (MiUHC) from Manulife Indonesia as an option to ensure financial freedom is achieved in the future.

Not only does it provide benefits for reimbursement of hospital costs, with this product we can also experience the benefits of overseas room costs, additional annual limits for critical illnesses , and payment of benefits according to bill. So we can focus on the healing process when we are sick, without having to think about our financial condition.

Apart from that, we can also use MiSmart Insurance Solution (MiSSION) which offers a 3 in 1 solution at once, starting from life protection, investment, to health.

By investing, having insurance, and using several ways to manage finances, we can be more disciplined in order to achieve our dreams, namely living with financial freedom, or financial freedom !