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The What, How & Benefits Of Financial Freedom

Why are we making efforts toward our financial portfolios today?

The simplest answer to this question is – so we can gain financial freedom.

So, today we thought we’d talk a little bit about the meaning of financial freedom, and how one can go about achieving it. There’s a lot to learn here – so pay attention!

What is financial freedom?

Financial freedom refers to the state of having achieved a level of financial stability and security that allows you to live your desired lifestyle, meet your needs without being constrained by financial limitations, and have enough funds to cover unforeseen expenses and emergencies.

Financial freedom essentially frees you up to do whatever you want, whenever you want it without having to worry about monetary burdens. 

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How to achieve financial freedom?

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While the concept of financial freedom is simple enough to understand on its own, achieving financial freedom is a whole other story. It takes time and effort to become financially free, but there are simple steps you can take today to tread the path to liberation – 

→ Plan – There is no set formula for financial freedom. You have to plan your financial portfolio and make decisions that align with your goals, regularly. You have to understand your total budget to allocate funds toward spending, saving, and investing (emphasis on the latter two!). 

→ Save – Saving money is an irrefutable necessity on the way to financial freedom. A savings fund gives you a security blanket that can protect you from financial burdens that arise from a situation of crisis. And it is a blanket you can share with friends and family when they need it most too!

→ Invest – Investing is not a sidekick, folks – it’s a main character! If there was a guide to financial freedom, investing would probably be the first chapter in there! Investing allows your money to grow, instead of just sitting idle in a savings account. Today, with options to microinvest (like with Deciml!), you can literally start investing with ₹1, and no amount is too small to invest, as long as you stay invested for the long term, and keep investing routinely.

→ Audit – Check your growth, check where you’re making losses, and check if you’re in debt. Understand your existing financial situation, and recalibrate financial decisions whenever necessary. Maybe you’ll need to diversify more, maybe you’re not saving enough every month, maybe you need to get that car insurance after all – whatever it may be – reviewing these things and taking corrective action is imperative for financial freedom.

These steps are the starting point for financial freedom. You have to actively chart plans to reach the amount of wealth you will need to meet your goals and allow you to also follow your passion in life, while also ensuring your security.

What are the benefits of financial freedom?

Other than being able to proudly proclaim “I’ve got financial freedom! 💪🏼”, there are a few other benefits of being financially free that we wanted to share with you (just so you stay motivated to keep treading this course!) – 

  1. Less Stress – Having financial freedom means you’re no longer stressing about money – and that feeling of being burden-free is like floating in the air! What’s there to worry about when you’ve got your finances covered for goals, emergencies, and fun
  2. Flexibility – Financial freedom means you decide what you want to do with your time – because the money is already taken care of! It can free you up to follow your passions instead of working long hours, it can equip you to indulge your wanderlust – the sky’s the limit!
  3. Opportunity – Financial freedom opens up new avenues for you to make more money as well. You have the bankroll to invest in small businesses or even invest in your own passion projects – and new challenges are exciting at any stage in life – so this is an important one!
  4. Legacy – We all want to leave the world a better place than we found it. But we definitely want to leave our families protected and provided for, no matter what. Financial freedom means you have achieved this important milestone, and your loved ones will always be taken care of.

Ultimately, financial freedom can help you live your life to the fullest, with the people that matter the most, making memories that will last a lifetime – all without worrying about the money!

FAQs

  • How to get financial freedom?

To attain financial freedom you have to plan your spending and make routine efforts to save and invest your money. It is also important to regularly revise your financial portfolio to optimize your returns.

  • What are the 3 steps to financial freedom?

While there is no definite set of steps that will lead you to financial freedom, the three main strategies that can help you get started are saving, investing, and insuring.

  • How can I plan for financial freedom?

You have to understand your total budget (weekly, monthly, or yearly) and start mapping your expenditure, savings, and investment capacity. Once you are covering the basics, you can start looking into diversifying your investments, increasing your savings, and optimizing your returns.

  • What are the benefits of financial freedom?

There are many benefits of financial freedom. It removes the stress of always having to worry about money, and can also give you the time to follow your dreams without being a part of the hustle! It can also allow you to safeguard your loved ones while spending more time with them and creating joyful memories! 🙂

  • How does investing help in getting financial freedom?

Investing means you are not letting your money sit idle, instead, you are allocating it to a stock, fund, bond, or commodity that starts earning you returns. Over time, because of compounding interest, your investments grow and eventually help create wealth, which is crucial to get financial freedom.

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