Becoming Financial Freedom at a Young Age, Here are Some Tips!

Financial independence is the state of being able to provide for one's own requirements without relying on others. For example, such as having savings, investments, cash to enough assets to meet needs. Financial freedom is frequently discussed, particularly among millennials and Generation Z, because it is a common dream for many people.

To be able to achieve financial freedom is certainly not easy, because careful preparation and planning are needed, and as a young generation, discipline and high commitment are needed in managing finances.

What Is Financial Freedom?

According to Bareksa's investment coach, Felicia Putri Tjiasaka, financial freedom is a big goal in financial planning which means not always retiring or quitting work. When you reach this point, you no longer work for money.

Income has been earned through passive income, just like people who have a pension fund to cover their living expenses when they are no longer actively working. Regardless of income, a person who has experienced financial independence pursues aspirations or simply enjoys these activities.

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Know Your Style in Managing Finances

Start from understanding your financial condition first. Whether the income is enough to cover all of your needs and desires without affecting your savings.

After that, recalculate expenses every day, week, and month to be able to see if the existing expenses are being used properly. Or instead, your expenses are bigger than your income, in which case you have to review and prepare by looking for additional income from other sources or reducing your expenses.

Third, put motivation that can make you more disciplined and committed to maintaining expenses so that the dream of financial freedom can be realized!

How to Become Financial Freedom at Young Age

Then how can you have control over your money in such a young age? The key is to manage finances. PT Mandiri AXA General Insurance ("MAGI") has summarized the things you must do to achieve financial freedom.

1. Plan Your Life Goal

Decide what you want to achieve in the future. For example, start by planning to have an emergency fund, and other funds for your needs. But to achieve your wishes, you must determine cash flow every day, week, or even month. So that the designed planning will be more realistic according to your financial situation!

2. Pay Off Debts and Credit

After knowing what your wish list is, you should review whether you have debts or credits that are currently still running. If so, it is recommended that you pay off the debt and credit as soon as possible. When payday comes, you can set aside money every month for repayment.

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3. Start a Healthy & Simple Life

One of the things that really affects your financial plan is your condition when you are sick and require large treatment costs. To avoid unexpected situations, you must live a healthy lifestyle by controlling your food, exercising regularly, getting enough rest, and starting a simple life, but that doesn't mean it's stingy! However, it is more important to be wise in managing expenses.

4. Investment

If you already have an emergency fund and insurance, it's time to start investing. Why? Because the money you currently have will not have the same value in the next few years. In addition to investing with a variety of existing investment instruments such as gold, mutual funds, stocks, and others.

Long-term investment for your health is also important, you know!

The Importance of Health Insurance to Achieve Financial Freedom

Did you know, long-term investment in health will support you to be able to achieve financial freedom faster. By maximizing protection through SmartCare Executive from MAGI as health protection insurance from the risk of disease that can come at any time.

Protection for you and your family with a wide range of benefits, including inpatient benefits such as coverage for surgery costs and accidents, as well as expanding outpatient benefits1 with low premiums. This benefit can also be accessed easily using a health insurance card at all hospital and clinic partners in Indonesia, making you more comfortable getting protection.

1Coverage based on the terms and conditions of the applicable policy
*Applied for direct transaction through AXA Mandiri MyPage until 31st December 2023

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