Treasury friends must be familiar with the term Financial Freedom. It is a condition where a person has enough assets and passive income sources that allow them to make ends meet without having to rely on active employment. So, you don’t have to work late into the night anymore.
Achieving financial freedom is the dream of many people, because with this condition you can have more flexibility in life. You can pursue your passion without worrying about income, spend more quality time with your family, enjoy a more comfortable lifestyle, and retire early.
However, achieving financial freedom is not instantaneous. It takes careful planning, the right strategy, and disciplined and consistent financial habits. Many people are trapped in a consumptive lifestyle, especially Gen Z. They lack the ability to plan their finances and manage their income.
Therefore, it is important to understand the steps that can bring Gen Z pals closer to financial freedom. If you want to have a more financially free life and not depend on an active job forever, let’s see it through! Here are five strategies for Gen Z to live without relying on a paycheck.
1. Understand your current financial condition
In the financial freedom strategy, it is very important to understand your own financial condition. Understand what you need and what you don’t. Don’t be easily influenced by someone to buy what you don’t really need.
By understanding your own financial condition, of course the assets and income that we have will be better maintained in value and amount.
2. Make a Mature Financial Plan
The next step in implementing a financial freedom strategy is to have a clear financial plan. Start by setting short, medium and long-term financial goals. Create a budget that includes income, expenses, and allocation of funds for savings and investment.
With good financial planning, Gen Z pals can avoid unnecessary expenses and ensure that every income earned is maximally utilized to build assets and achieve financial freedom.
3. Save Well
Financial Freedom strategy includes saving money. To save, you don’t have to save a large amount, you can start with a nominal amount of at least 20% of your income for a month.
What is the meaning of saving a large amount of money but in old age you run out of money and have to go into debt. By setting aside part of your income for savings, you learn to manage your finances more wisely and are not easily tempted to impulse shopping.
4. Pay off Debt
One of the biggest obstacles to achieving financial freedom is debt. The more debt you have, the bigger the financial burden you have to bear every month.
The sooner you pay off your debts, the more money you can allocate to savings or investments. Without debt, your income can be used for more important and productive needs.
5. Increased Source of Income
In addition to managing your finances well, you can also look for ways to increase your income so that you can accelerate towards financial freedom. Don’t just depend on one source of income, because this can be a big risk if something unexpected happens such as losing your job.
Additional sources of income can be by creating your own business and adding side jobs. With this additional source of income, it can help you cover monthly expenses so that your main income can be diverted to assets.
6. Invest
Treasury pals, do you know that money that is just stored will decrease in value over time due to inflation. Especially if the money is kept in a bank, there are several administrative fees and taxes that you must pay. That way, it will drain your savings. Therefore, in order not to be affected by bank tax deductions, investing early is the solution.
Try to imagine that by investing, the value of your savings will increase every year, because the price of assets continues to increase. You don’t need to be confused about choosing assets, because there are many choices of assets for investment with various instruments. However, the most commonly used and popular due to its consistent increase is digital gold.
Achieving financial freedom does require a strong effort and commitment, but with the right steps, you can achieve it faster. One of the best ways to secure your finances in the future is by investing in gold, as its value is stable and tends to increase from year to year.
Let’s start the journey to Financial Freedom by investing in digital gold at Treasury! With a safe, easy and transparent platform, you can buy, store and manage gold anytime without any hassle. Don’t delay, realize financial freedom from now on by investing in digital gold at Treasury!
