A guide to gaining financial freedom
Financial freedom means being in control – of your time, your money, and your choices. It could be retiring early, working less, travelling more, or turning a side hustle into your main gig. Whatever it looks like to you, it starts with a plan.
Before you start saving or investing, take an honest look at your finances. A clear understanding of where you are now will allow you to make better decisions for your future. You'll also discover your net worth: the difference between what you own (assets) and what you owe (liabilities).
Take a look at all sources of income so you can understand what’s coming in and at what frequency.
Record all your expenses – regular or irregular – and look for patterns to see where you can make changes. Group them together by ‘needs’ (electricity, rent, food etc) versus ‘wants’ (nice holidays, concert tickets etc).
Make a list of what you own (cash, savings, property, valuable possessions) and what you owe (mortgages, loans, buy now/pay later debt, credit card debt).
Once you know your net worth, the next step is to have a clear vision of what financial freedom means to you. Knowing your end point will help you create a plan to get there. Ultimately, financial freedom means you’re in control of your money and your life choices.
Define your goal clearly. What does financial freedom mean for you? Is it working fewer hours, taking a sabbatical, retiring at 50, or having the freedom to leave a job you dislike?
Break your big goal into smaller, achievable milestones – such as clearing your debt, saving your first $5,000, $10,000, or $100,000 – and set realistic timelines for each one.
Try and stay focused on your long-term vision and not get sidetracked by short term temptations.
Now you know where you want to go, it’s time to create a plan to get there. This will help you stay on track and manage whatever challenges arise along the way.
Set a savings target. An easy starting point is to save a fixed percentage of your income – for example, 5% or 10% each month.
Establish an emergency fund. This acts as your financial safety net, ready to cover unexpected expenses like car repairs, medical bills, or a sudden job loss – so you won’t have to raid your savings.
Remember, it's okay to adjust or adapt your plan as your life changes.
The quest to reach financial freedom can require changes to your lifestyle. You don’t need to deprive yourself, but you might want to align your spending with your long-term goals.
Create a detailed budget that reflects your priorities. Revisit it regularly to make sure you’re on track and that it’s still relevant.
Live below your means, which doesn’t mean be cheap, but focus on what you need, not what you want.
Embrace delayed gratification, be comfortable with the idea of making sacrifices, and remember each dollar you save brings you closer to your goal.
Investing can be a powerful way to speed up your journey to financial freedom. Tempo allows you to invest in small amounts, which compound over time.
Start early – the longer you invest, the more time you’ll have to take advantage of the power of compound interest.
Diversify your investments by spreading your money across different types of assets (like stocks, bonds, and property). The main benefit of diversification is that it helps reduce risk, because you’re not putting all your eggs in one basket.
Make regular, consistent contributions – at whatever amount you can – to help build long-term wealth. A pro-tip would be to set an automated payment every payday.
The pathway to financial freedom is a journey towards more choice and alignment with what matters most to you. You might have a dollar amount in mind, but your real goal is more flexibility and freedom. Try not to sacrifice quality of life for future security.
Maintain balance by leaving space for what brings you joy, and be open to change.
Avoid burnout by regularly reviewing your goals to make sure they’re still relevant and achievable.
Celebrate your milestones to make sure progress isn’t just about hitting that magic, maybe far off, finish line.
Achieving financial freedom is about creating the life you want. Smart saving, regular investing, and some long-term thinking, can help you build a future with more choice.
With the power of investing, Tempo can make your money work a little harder and help you save towards your dream life.
External links on this page
We have provided a number of links to relevant external websites which we believe to be reliable. However, the information on these external websites (including information provided through the use of online tools) is prepared, managed, and provided by other organisations and businesses, not by us. To the maximum extent permitted by law, we accept no responsibility for the accuracy or availability of the information on those external websites. We also receive no payment for including these links.
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