05 Aug 2022 | Edukatips

Getting to Know Financial Freedom and How to Achieve It at a Young Age

Every individual certainly wants to achieve financial freedom. Financial freedom is a situation that many people dream of because if you have achieved it, you will no longer worry thinking about your financial conditions. In other words, you already have enough money to meet your needs.

Then, how to achieve financial freedom at a young age?

Here is a complete description of how to achieve financial freedom before turning 40 years old. 

What is Financial Freedom?

Before knowing how to achieve financial freedom at a young age, know more about the meaning of financial freedom.

Financial freedom can be interpreted as financial stability for an individual. When a person has achieved financial freedom, they no longer worry to spend their money to buy things or fulfilling their desired needs.

In general, financial freedom is a condition in which a person has sufficient savings and investments, is free from debt, and has enough money to fulfil the desired lifestyle for a relatively long time. 

Benefits of Financial Freedom

Many benefits can be obtained if you have achieved financial freedom! Here are some details.

1. Have financial stability

The benefits that can be felt when you have achieved financial freedom are having financial stability. It means that you can allocate your financial budget in their respective places effectively and efficiently.

People who are already stable in terms of the economy will not be confused about allocating money because they have planned their percentage of income for needs that must be budgeted every month.

2. No longer worry about their financial condition

One of the characteristics of people who have achieved financial freedom is that they no longer feel anxious about their financial conditions. All daily needs will be met, as well as dreams, can also be achieved.

People with fairly well-established and stable financial conditions can buy secondary and even tertiary needs without having to worry about their savings after shopping activities.

3. Financially Independent

The benefits that can also be obtained when you have achieved financial freedom are financial independence. People who have achieved financial freedom can fulfil their personal needs without needing help from other parties.

For example, at the age of 25 when you already have income, can save, and meet your needs independently, it can be interpreted that you are classified as an individual who has achieved financial freedom at a young age. 

How to Achieve Financial Freedom at a Young Age

Currently, many workers or entrepreneurs are still young and already have a large income. However, a high level of income does not always have a positive impact. Instead of achieving financial freedom at a relatively young age, many people are trapped in a wasteful lifestyle, credit card debt swells, and are burdened with various kinds of debt.

Here are five ways to achieve financial freedom at a young age with good financial planning and management!

1. Understand your financial condition

The first way to achieve financial freedom is to understand your financial condition. Know your financial condition and make sure that the income you have can fully meet your needs.

If the income is still mediocre or less, it is necessary to evaluate what can be changed. By making savings or changing lifestyles so that they are not too wasteful and can cover all needs with the amount of income received.

2. Making Financial Planning

The next step is to prepare a financial plan. Start by designing regular monthly or weekly expense items with the help of sophisticated banking products.

You can use Autopay BCA to facilitate the payment of various routine bills such as electricity, internet, TV services, and others. With Autopay BCA, routine bill payments are easier because you don't need to remember bill numbers and billing dates. You only need to pay once when a credit card bill appears.

3. Pay Off Debt

The most significant step to financial independence is getting out of debt. Financial freedom can be achieved when a person already has a stable income and is free from debt. From this, it is necessary to prioritize paying off debts by reducing unnecessary expenses or increasing income. So that the dream of achieving financial freedom can be realized quickly.

4. Saving and Investing

One thing that distinguishes people who are mediocre from those who have achieved financial freedom is whether or not they can allocate their income for saving and investing.

When you want to achieve financial freedom at a young age, you need to prepare yourself to manage your finances and set aside some of your income to save or invest. BCA offers several types of savings that can be tailored to customer needs, such as Tahapan BCA, Tahapan Xpress, Tahapan Gold, and others. As for investment, BCA offers Welma which facilitates the process of investment transactions such as Mutual Funds and Bonds.

5. Smart in Adjusting Lifestyle to Financial Conditions

Another way that is no less important to be able to achieve financial freedom is to smartly manage expenses. One of them is to adjust your lifestyle to your financial condition. In this all-digital world, it is necessary to take advantage of the conveniences provided by banking service providers.

Enjoy the ease of managing your finances for entertainment needs using the BCA Lifestyle. All transactions including buying tickets for flights and movies, as well as buying game vouchers can be done at your fingertips with BCA services. Now, as you already learned about financial freedom and how to achieve it, it’s time to implement and realize your freedom.