Imagine living a comfortable life without having to worry about money. It must be amazing. It is everyone’s dream to reach financial freedom in your life, especially working adults.
When you finally got that financial freedom, you do not have to worry too much about your living expenses, and bills and you will be able to save for yourself or spend on something that you really want without feeling guilty.
In a world where the cost of living has been increasing more and more, people are worried about how to live their life comfortably without financial stress.
Financial stress
Almost everyone on every side of the world has experienced being on the edge of financial stress. If you are among those people, do not worry too much about it. You are not alone. Many people are dealing with financial hardship in this day and age. Especially after the downturn of the economy since the strike of Covid-19.
Financial stress is one of the most common stress factors in this era. The stress factors range from losing a job, growing debt and bills, and increasing cost of living, as well as unforeseen emergency spending.
If you have not been directly financially impacted by the economic downturn, there must be at least one person that you know facing this situation. It is reasonable that people are losing their sleep, and worrying about their financial expenses, given the present unemployment crisis, and inconsistent economy. Without realizing it, our health and relationships with other people will be impacted by this pressure.
In this modern era, gaining financial freedom is such a dream come true.
What is financial freedom?
Financial freedom is when you do not have to be concerned about your finances and when money is not your biggest problem anymore. When you reach financial freedom, it means that you have enough passive income and you do not have to hustle too much on work to cover your living expenses.
People with financial freedom will have the work-optional where they have an opportunity to not work if they choose to. I’m sure, every working adult must have been dreaming of this situation.
Well, it takes time to achieve financial freedom. However, it is never too early or too late to start planning for your future finances. Therefore, if you want to achieve financial freedom, keep reading this article on how to make your dream of being financial freedom come true as a working adult.
Guide to financial freedom
- Financial planning
Planning your financial expenses is a crucial step, to begin with in order to achieve financial freedom. Keep track of your monthly budget and expenses. There may be possibilities to modify your financial monthly spending that can help alleviate some part of your budget.
Financial planning enables you to ensure that all expenses, debt, and bills are paid on time while keeping track of your savings. Create a monthly budget, list all your debts, keep track of your financial spending, record your total income, and keep it in a journal. That is how you can take the first step to reach financial freedom.
- Sign up for insurance
If you seek financial management experts, they will advise you to save your money for emergencies and savings. It is important for everyone to save for our future and what it brings to us. In its basic form, insurance is a plan that will give you protection against any risks posed by unpredictable events that may have a negative impact on your financial state.
There are four most common types of insurance that you can sign up for, such as life insurance, health insurance, long-term disability coverage, and auto insurance. If you are interested in applying, you can buy a health insurance plan for working adults Malaysia to reach financial freedom in the future.
- Avoid over-commitments
Over-commitment has become more and more normal these days. Nowadays, people are spending their monthly income merely on bills and paying debts. It is easy to catch up in a cycle of over-commitment. Your monthly spending will be increasing every time you subscribe new service or add on credit cards.
Well, it is not entirely wrong to do that. But making sure you can afford the payments before signing up for anything is a crucial step to take. That is why creating a monthly budget is important for you to keep track of your financial expenses.
Avoid subscribing or signing up for any kind of service that could result in over-commitments.
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