Have we ever thought about financial freedom? Did you join him today? Being financial freedom means that you can fulfill your every need without feeling stressed. The good news is that you don’t have to be a millionaire to be able to declare your financial freedom. Like, you can apply these five smart ways to manage your finances.
Prioritize your budget and finances
We must have purpose in what we do so as not to deviate from the original plan. The same goes for your finances. If you want to be financial freedom, goals will help you set your budget and financial priorities. Ask yourself, what do you want in the future? Could it be someone who already has a house and a car, or someone who can travel the world?
To start, we track daily expenses and unexpected expenses for a month. With this, you can see which expenses need to be reduced or eliminated. Create data that consists of all your financial priorities to determine which ones are mandatory and urgent and which can be deferred.
Always have an emergency fund
If you want to be financially freedom today, you also need to make sure your future is full of freedom as well. This means being able to meet all your needs, whether planned or not. Therefore, you must have an emergency fund. Emergency funds are savings that are used for emergencies such as when there is an illness, home repairs, vehicle servicing, damaged gadgets, etc.
Even if you are pretty sure of your current income, no one can guarantee your future income. Think of your emergency fund like a lifeboat on a cruise ship. Make sure you have enough emergency funds for the six month contest. So, increase your income and put it in an emergency fund so that you feel comfortable and quickly achieve financial freedom.
Don’t change items too often
We are often tempted to buy new things because we see influencers or friends wearing them when we don’t really need them. One of the financial tips that can help you become financial freedom is to understand your financial condition.
Don’t be tempted to live a lifestyle that is beyond your financial means if you want financial freedom. Expensive stuff is fine, but cheaper options might still suit your needs.
Especially for gadgets, you should not buy a new one if the old one is still functioning properly. Take advantage of what you currently have based on their values. If it’s damaged, broken, or no longer helps you to be productive, then it’s time to replace it with a new one.
Today, storage alone is not enough to protect our assets from inflation and ensure our independent lives. doesn’t work, you can now start investing using your mobile app. You don’t even have to go to the bank!
As a beginner, you may still be afraid to choose an investment tool. However, it must be remembered that all investment products have the concept of high risk and high return. So, if you are brave enough to accept investments with high potential and want to be financial freedom, then you must also be brave enough to face high risks.
As a tip, it is best to diversify your investment portfolio to incur losses. And don’t forget to buy investment products only from financial institutions under the supervision of OJK Indonesia.
Consumer money gifts
It’s okay to have debt that doesn’t pile up and weigh on your finances. Consumer debt is something you need to pay attention to if you want to be financial freedom. Consumer debt is debt that is used to buy goods or services that cannot be reused or reinvested to make more money.
Again, having consumer debt is not wrong, it is recommended if you want to buy expensive goods without letting your cash flow stagnate. But make sure you always pay debts so that your income is not only used to pay debts.