Money lets us acquire basic commodities, like food, clothes, medicine, and shelter. It can also help us acquire the comforts in life, like a big house, a sleek ride, and a grand vacation. That’s why we strive to earn money.
The truth is, whether we are content to live a simple life or we dream of a better way of life, we all want to be financially independent someday. We wish to enjoy life to the fullest without financial pressure or without worrying where to get the money to put food on the table or pay the bills.
Being financially independent means having more options in life. You are free to do a lot of things minus the worries if you have money to do what you like. You can give your child quality education, leave your job before you reach the retirement age, or acquire luxury.
How much or how little you make is not the basis of having financial freedom. Even if you are earning six figures, it’s still not being financially free if you’re also spending that much or you need to give up a lot to keep your lifestyle.
Real financial freedom is being free from financial obligations. It’s about more about cutting your expenses and less about multiplying your wealth. There are people who work hard to boost their wealth to buy various stuff, but in the process, they only acquire more bills to pay.
They also have to work harder than normal, prohibiting them from enjoying life, only to sustain their extravagant lifestyle. These acts totally negate the very essence of being financially free.
Whether you earn a lot or just enough, you need to practice discipline. Either decrease your expenditure or boost your earnings to broaden the gap between your income and your expenses. You can manage your wealth sensibly. You can save up and invest on assets that bring in profits on their own in the long run to cover future expenses.
But before investing in something, know the risks first. Ask an expert and study your available options. Not all investment schemes are right for everyone.
If you’re in Singapore, you can consider CPF investment or other investment schemes. And if you want to know more about insurance coverage options, an insurance planning Singapore firm can help you address your concerns.