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What is Financial Freedom and How to Achieve it?

Learn how to achieve financial freedom to accomplish your life-goals and live life on your own terms.
Wasim Raza Jul 31, 2019

What is Financial Freedom?

'Financial Freedom' is being in a position where you have enough invested money to handle your future expenses and retain your lifestyle for the rest of your life without the need to continue your job for monetary reasons.

Why Financial Freedom Is Important to You?

  • Improves overall health and mental well-being
  • Build wealth for future financial crisis
  • Allow to live your life on your own terms

How to Achieve Financial Freedom?

1. Manage Your Income

Learn to manage your overall income in order to manage all your expenses and savings.

2. Make a Budget & Clear-Off Debts

Track your monthly fixed and flexible expenses to start budgeting. In doing so, manage your existing and future debts so they don't get in your way to achieve financial freedom.

3. Handle Short-Term Emergency Funds

Build a short-term emergency fund of at least 5-6 months for any unexpected financial crisis in future.

4. Get Insurance ASAP!

Life is unpredictable! You cannot anticipate everything!

Therefore, avail life insurance & health insurance plans to secure yourself and your family in case of any unfortunate event and safeguard your financial planning for financial freedom.

5. Invest in Your Long-Term Goals

Plan your investments as per your long-term financial goals such as:
Decide on investment options like equity investments, real estate, ETFs, and MFs, etc. Also, figure out your time horizon and risk tolerance as well.

6. Monitor Your Portfolio

Don't forget to monitor your investment portfolio on a timely basis. There may be some short-term ups and downs but focus on your long-term goals, only then you can become financially independent to live your life on your own terms.