What does Financial freedom mean to you ?
- To some, it means being able to retire at age 40.
- To some, it means having an account balance of a million dollars.
- To some it means being able to travel to any country you want at any time you want.
- And to some, it means being able to own a 5 bedroom duplex in a highbrow area.
Now, no matter what financial freedom means to you it can only be achieved with the right habits, steps, tips and discipline.
I’d therefore be sharing four basic steps to attain financial independence and they are;
- FINANCIAL LITERACY:
Financial literacy simply means learning how your money works and making it work for you.
Financial education is essential and number one in maintaining financial independence.
For more information about financial literacy – you could check out Money Africa (Africa’s number one leading financial education platform) on Instagram and Google for more information on how to make money and make more money.
- BUDGETING:
Budgeting can not be over emphasized and it involves making every penny you earn responsible for something.
You could use the 50-30-20 rule i.e
50% of your income – Needs
30% of your income – Wants
20% of your income – Savings and investments.
50-30-20 !
- SAVE: Save, Save, Save !
Always save no matter what but bear in mind that no one becomes rich by savings alone but by savings and the right money habits.
Note that it is not advisable to save in a normal savings account in a commercial bank due to high bank charges.
So, you could ask your bank for savings account with low charges or you could save with Fintech companies such as Piggyvest, Paycom , Herconomy etc.
- INVESTING:
Do you know that if you had invested ₦100,000 in Netflix in the year 2007, by January 2022 it would have been worth ₦2,500,000 ?
Invest, but only with the right knowledge about what you want to invest in.
There is a saying in the financial world that by age 30, all discussions with your friends should be about businesses, marriage and making money but I tell you that with the current world economy by age 17, you should already be thinking of making money.