We all strive to achieve financial freedom as early as possible. What exactly is financial freedom? A financial status where we’re covered by enough savings, investments, emergency corpus and a retirement fund that grows with each year. Why is this so important? Not having to live paycheck to paycheck, not being burdened by a debt, having the freedom to pursue a passion and live worry free. That’s what makes financial freedom so covetable.

How should one do that? Here’s a quick guide. 

1.   Rising Age: 20’s – 30’s 

As soon as you start earning, start financial planning

1. Save as you go 

When you’re young and have just started working, your expenses are a consequence of an education loan or sharing a family burden. Other than that you’re quite happy about becoming independent and having a cash flow to spend on your own needs and wants. But before you go and about splurging, take this time to financially plan your journey. A little conservation now will greatly help you in your future. Assess your income, your daily expenses, budget your investments and thereafter set out to spend. 

2.  Quit a job or stay put? 

As glamorous as the idea of becoming financially independent seems, it comes with its own set of thorns. There are times when you are emotionally stressed, the burn out is gradually rising and you really want to quit your job. It could also be a reason of a nagging boss, overwhelming workload, and unappreciative employee. The toxic environment is not very helpful to your growth. At such times should you make a decision emotionally or rationalize your financial standing, future goals and plan accordingly? To be able to quit on your own whims you need to have enough saved to survive the transitory period till you find a job you like. 

3. Startup world, sabbatical or continue working? 

Thinking of taking a sabbatical? Want to build on your skills, travel the world and explore? Before you commit to it, ask yourself, do you have enough saved to go for a six month to a year expedition? Are you covered to come back and still manage to live on your savings till you find a new job? Have you considered the consequence of an unexpected situation such as a pandemic? To be able to meet all accounted and unaccounted expenses should be your goal before heading away on your much-desired sabbatical. 

2. B) The Middle Age – 40’s – 50’s 

1. It’s time to bid adieu to your debts

With growing responsibilities the only people who never fail to check on you are those whom you owe money or need to pay bills for their services. It’s easy to sink a hole and become debt indebted. Make sure at this point, to retire early you aggressively pay off your debts as well as have savings to cover all your important, daily, medical costs, children marriage, higher education, travel plans as well as the unaccounted wants and lifestyle you wish to live. 

2. It’s time to say sayonara to the job world – You’ve set the date

. Set a date in mind, by when you wish to retire. Take stock of your current investments and devise a strategy to plan future investments to meet your date of retirement. This will motivate you and keep you on track. 

3.  Finally giving up your salary addiction & corporate world grind – The date is closer than you think 

At this point, your investments are in place and you’ve started building on your retirement corpus aggressively. At this point, with your investments and savings looking up, you’re closer to a hygge. To officially not have to hustle tirelessly. 

4.  When you don’t have to think twice before quitting your job – It’s happening for real 

You can now focus on a work life balance because grinding is no longer a need of the hour. Your finances and retirement are all set. You can easily focus on charity, attend art events, take up on your passion project as a side hustle. It’s time to slowly say goodbye to the corporate world. 

5.  When you’re financially protected and secure. – You did it! 

You’ve paid off your debt. You’ve your investments in place. Your savings have covered important goals. Your retirement corpus is looking good. What should be your next step? Should you retire immediately? Without a second thought, you’ve attained your financial freedom, it’s time to hang your boots and enjoy the golden years without having to worry about your finances anymore.