Independence is worth fighting for – this is something that history has proven many times over. The way we celebrate the heroes who fought for our sovereignty is a testament to this. Today, we continue to fight for our own versions of freedom, one of which is financial independence. While it may seem like a tough road to take, financial independence is surely something worth fighting for as well.
Financial independence is a declaration of freedom – from debts, shortage, and other forms of financial insecurity. It’s when you have already acquired the funds needed to live a comfortable life in the present, while also having a sufficient income stream for the future without being dependent on work alone or a support system like family members. It’s being able to make your money work harder to sustain your needs and your lifestyle and not the other way around. Simply put, financial independence is living life to the fullest without financial burdens.
Now that’s worth fighting for, isn’t it?
Preparation is key towards being financially-free. Here are some steps to move closer towards your own declaration of financial freedom:
- Set specific financial goals. Goals help direct paths, but they must be specific so you can set a clear view of what's at stake as well as the steps that must be taken to achieve them.
- Spend with limits. One big mistake is spending beyond what you actually earn. A monthly budget must be established to ensure that your funds are well allocated. Discipline plays a role in resisting temptations to splurge!
- Save. Part of your earnings must be allocated to savings. While its necessary to treat yourself sometimes, more often than not, you need to cut unnecessary expenses to ensure that a portion of your income will go to your savings without sacrificing the essentials.
- Explore income-generating opportunities. When the income is insufficient, try to find ways to generate more income. Side hustles may be in the form of service offerings, product selling, or starting a small business.
- Invest now. When it comes to investing, the earlier your start, the better chances for your money to grow. It brings the advantage of having enough time for the investment to gain higher yields. Mutual funds and stocks are some of the investment opportunities that may be tapped.
Want to know your risk profile? Take the Investmentality Quiz to know the right investment for you based on your risk profile.
- Buy life insurance. Securing your and your family’s future is also a factor in attaining financial freedom. With life insurance, you can prepare for the future with the help of benefits that typical savings won’t cover. It is also one way to prepare for life's uncertainties so that no matter what happens, you and your loved ones are future-ready.
Not sure how much it will cost to properly fund the current and future needs of your loved ones? Find out using this Life Insurance Calculator.
There are several factors that plays a role in attaining financial freedom. With the right habits and mindset, you can achieve it. The road to attaining financial independence may be difficult but once you get the hang of it, it will become easier. More importantly, just like freedom, the price to pay is incomparable to what it’s worth.
If you need guidance in taking the path toward financial independence, connect with a Sun Life financial advisor who can help you achieve your goals.