5 Easy Steps to Achieve Financial Freedom at a Young Age

“Rich” is a relative word that has different perceptions for everyone. Although wealth and the amount of money cannot contribute to a happy life, money also has a great influence on living conditions, developing social life, or cultural experiences.

This is one of the goals that are often owned by the community in achieving the condition of the community financial freedom. Well, you can find some universal steps that can indicate your achievement on the road to financial freedom. Curious? Come on, see anything!

1. Savings in sufficient amount

5 Easy Steps to Achieving Financial Freedom, Success at a Young Age!Illustration of counting money (pexels.com/Karolina Grabowska)

Some of you may still have misperceptions about finances. Robert Kiyosaki in his book entitled Rich Dad Poor Dad states that saving is more important than income. This is because the income you earn is often used to fulfill temporary desires.

You can overcome this by starting to set aside a small portion of your income, then increasing that amount to be used as an emergency fund or unexpected expenses. Well, if you can save or maintain some part of the income, then you are on the right path, you know!

2. Frugal lifestyle

5 Easy Steps to Achieving Financial Freedom, Success at a Young Age!Family illustration (pexels.com/Agung Pandit Wiguna)

Living according to your abilities is one of the financial management tools that you can use to deal with financial problems responsibly. By adopting a minimalist lifestyle, you can learn to differentiate between needs and wants. This has an important role in your financial aspect, you know!

Even, mindset it is often used by billionaires who live simply and comfortably below their means. One of the easy steps to start this frugal lifestyle is to spend less money than you earn.

Also read: 5 Myths about Wrong Financial Management, Don’t Be Fooled

3. Action-oriented

Continue reading the article below

Editor’s picks

5 Easy Steps to Achieving Financial Freedom, Success at a Young Age!Illustration at work (pexels.com/ANTONI SHKRABA)

An action-oriented mindset is one of the important things that can encourage you to achieve financial freedom. You are required to be able to become a person who is able to see opportunities and take the right steps so as to achieve the benefits of these actions.

By investing in the long term, you are guaranteed to generate significantly more wealth than making short-term investments. In addition, you can also be advised to write down your goals specifically within a certain period of time.

4. Meet retirement costs according to schedule

5 Easy Steps to Achieving Financial Freedom, Success at a Young Age!Job illustration (pexels.com/Andrea Piacquadio)

In facing retirement, you need expenses of 70–80 percent of your income. Even if you have tried to reduce expenses, retirement is a long period of time to meet your needs with small or large expenses.

Traditionally, the retirement age is around 65 years. You can start contributing by saving for retirement costs effectively and efficiently. Apart from that, you can also invest in your health by making regular visits to the doctor!

5. Not only motivated by money

5 Easy Steps to Achieving Financial Freedom, Success at a Young Age!Family illustration (pexels.com/Mikhail Nilov)

Mindset What you can often find in the personality of a billionaire is to focus on solving a problem or developing a business by considering every thing to the maximum. If you only work to make ends meet, then you only focus on income rather than the intellectual abilities of your job, you know!

Even if you haven’t made a sizable salary or are experiencing slow investment growth, you are advised not to make money your main motivator or source of joy. One thing you can do is write down your financial achievements on a regular basis according to your age.

Being in stage financial freedom is the greatest achievement of most people in various parts of the world. In achieving these goals, you can start doing the steps above as a proper guide from some financial experts, well!

Also Read: 5 Financial Hacks So Students Can Manage Money Well

IDN Times Community is a medium that provides a platform for writing. All written works are the sole responsibility of the author.