1. Learn

Take stock of your personal finances! We cannot stress this enough. It is important to know your personal patterns of earning and spending. It is important to know how much money you’re putting away into your savings (erm… if any at all?!). It is important to know how you can invest. As soon as you start making money, you need to know the breakdown of your earnings. Is there an amount going to a PF? What tax bracket are you falling under? Do you get reimbursed for medical expenses? Ask these questions and get insights on savings and investing from reliable sources. So, the key to financial freedom? TAKE STOCK OF YOUR PERSONAL FINANCES!

2. Spend…

Spending is not your enemy (read point 3 for the exception!). When you are planning your monthly budget, set aside an amount for spending, apart from your routine expenses. This could mean spending on experiences (less buyer’s remorse with this!), treating yourself to a brunch with friends, or buying something you’ve been building up your savings for. Spend, while also keeping your financial goals in mind – bigger life events, education, travel – remember the bigger things you want to spend on even when you’re making smaller purchases.

3. …But Not Just to Impress

Spending impulsively is your enemy – just don’t do it! This is absolute when it comes to the rules of financial prudence. We get it – it’s tough to plan every expense – but, believe us, it is worth doing. When you stop spending just for the sake of spending, you are on your way to making better financial decisions. Simple decisions like waiting for a sale to buy that pair of shoes you really want, or making sure you set a credit limit for yourself can be life-changing. You can also allocate a monthly sum to ‘unbudgeted spending’ to ensure your savings are untouched and your investments are carrying on smoothly.

4. Save

In the list of many allocations of your monthly budget, one of the most important ones is saving. If you have savings that can coast you through rainy days (or any worst-case scenarios), you are truly financially free. Think of your savings like a security blanket! Right from planning for emergencies, to splurging on life experiences, to making big purchases, to investing back in yourself; your savings are what drive all these financial decisions, and can ultimately determine how much financial freedom you end up having as you grow older. 

5. Invest

If savings were a superhero, investments would be its mandatory sidekick! 

Making informed financial investments and investing consistently are important cornerstones to financial freedom. The Deciml App is a great way to get inducted into the world of investing and making smart investment choices. Automatic investments on a daily basis or lump sum investments through the year – both are a great way to create and utilize your savings respectively – and the Deciml App can do both for you. If you are unsure about how to start investing and don’t know which investments are truly smart investments for you, then an investment app like Deciml is the perfect fit for you. The bottom line is this – there are two main ways to generate an income – by earning money, or by growing your existing money. So while you take care of the former, we can handle the latter for you like the pros we are!

If you’re still wondering why these habits are important for you (when you’re only in your 20s), we’ll conclude by saying that you are at the right age to start building your financial portfolio. If you start early, you will reap better rewards in the long run. Adopting these habits early will ensure that even small investment amounts garner better returns (thank God for compounding!). 

Remember, financial freedom is not something you can achieve overnight. It requires meticulous planning, valid information, trial and error, and most importantly – starting now!