The concept of financial freedom has changed drastically in a few short decades. For the boomer generation, the middle-class dream included owning a home by age 30 while also affording a family and annual vacations.
For most millennials, not needing a roommate of the same age is a comparable financial ambition. Unfortunately, astronomical inflation in the housing market and enormous increases in living costs are responsible.
But even so, it’s still possible to strive for your definition of financial freedom with these money-savvy steps.
5 Money Savvy Steps to Consider to Become Financially Free
#1: Consider Insurance
While younger generations have notably different insurance needs than previous generations, more millennials are choosing to live without insurance simply because the extra cost seems avoidable. However, insurance policies are relatively cheap, and some can save you from unpredictable debt burdens.
Consider the cheapest auto insurance, renters insurance, and health insurance. With these basic essential policies, you’ll be one massive step closer to financial freedom because unpredictable misfortunes won’t risk financial ruin.
#2: Kickstart That Side Hustle
While living costs keep climbing, incomes seem to stay the same. With this, life is simply becoming more unaffordable over time. Fortunately, millennials prove resilient through this major dilemma by making side hustles a new norm.
Side hustles can range from ride sharing to freelancing part-time, filling out surveys, and joining affiliate marketing programs. Earning an extra income could help you finally start investing, fund a startup idea, or simply save more money every month. With this, financial freedom is suddenly more achievable than before.
#3: Start Saving
It might seem elementary, although as many as half of young adults don’t save any money. While this is partly due to the harsh economic landscape, saving money is possible with healthy financial habits.
One of the primary reasons people don’t save money is because they feel they don’t have enough. However, saving even a couple of dollars will eventually add up. Instead of shrugging off the idea of saving, consider side hustles and methods of reducing your monthly expenses. This is a significant step towards financial freedom.
#4: Revisit Your Budget Monthly
For peace of mind with regard to your finances, it’s key to have clarity. Instead of not really knowing and doing mental guesswork to determine your monthly expenses and make financial decisions, it’s critical to create a budget and revisit it monthly.
Because our expenses can change from one month to the next, it’s essential to revisit your budget monthly and continuously monitor your spending habits.
#5: Minimalism and Sustainable Living
Minimalism and sustainable lifestyles are trending for really good reasons. These ways of living protect the environment, and they maximize savings by reducing materialistic needs enormously.
While the idea of downgrading is hardly appealing to anyone, switching to a minimalist lifestyle or choosing sustainable living are both excellent steps toward financial freedom.
Financial freedom might mean something different for everyone. But even so, the only way to achieve financial goals is to plan your steps forward. For this reason, personal financial planning is the key to long-term financial success.
