How to achieve financial freedom here in the Philippines in 2024
The topic of financial freedom had been commonly discussed today in the internet than in the previous years. As it feels like many Filipinos today are prioritizing financial freedom than any other things in their respective life.
But what is financial freedom actually?
For me, financial freedom is living your life today without any concerns of money and other money related problems today and tomorrow. You’re already have sufficient money for your living expenses whether you will work or not.
Just imagine, you have enough money for the rest of your life, whether you will go on expensive vacation or on shopping spree, then when you’re done, you will eat on a fancy restaurant, what an experience that may be.
To achieve those financial freedom you are dreaming, there will be steps to do. These following steps will need your focus and frugality. Also, it will require you to change your habits when dealing with money.
Here are the steps on how you can achieve financial freedom here in the Philippines today…
Assess your current financial status first
By assessing your current financial status, you can have now an idea on how much money is going in and how much money is going out in a monthly basis. The numbers will never lie, it maybe positive or negative result.
This assessment also, can provide yourself a brief canvas on what your life will looking in the future on how much money is you need if you’re not working for the rest of your life.
List All your Debt
In order for you to achieve financial freedom beginning today, you should list ALL your debt. Everyone has debt, me, you, for whatever reason why we have debt after all.
You should list all your debt, so that you can make a plan on how you will pay it. These plans will an important part in paying your debt.
Also, with the list, you can prioritize your debt repayment, whether small to big, or relatives to a friend, that’s up on you on how you will do it.
Pay your debt from smallest to biggest
Paying your debt should be the first priority if you want to achieve financial freedom, because your debt will continuously to suck your money if not being attend.
Whether the debt is small or big, came from a relative or a friend, you should pay it. So that you will have a peaceful and stress-free mind in the long run.
For me, you should pay the smallest debt first because it will be easy to look and feel the accomplishment, while paying first the big debt, the progress will look slow.
You should set aside money from your salary for debt repayment, it will be very at first. From the time you receive your salary, you should immediately call the person that you have debt. So that you can pay him/her first before you can use the money on daily needs.
Save Money on Monthly Basis
Saving money is one of the best habit you can do If you want to achieve financial freedom in the future, because it will provide you and your family a buffer when time is difficult.
Also, it will provide you and your family the necessary cash for your daily needs when you decide not to work anymore. It is very important you must honestly assess your financial status today and your future so that can calculate the amount needed for the rest of your life.
I don recommend that you should save about 50% of your salary on monthly basis, you will have enough money as buffer, because prices on everything continues to rise up. If you earn 25,000Php per month, then 12,000 Php should be allocated to saving.
You should have a separate bank account for this, and you must keep it, where you cannot see it.
Start your own business
Starting your own business will provide you a continues flow of money, even if you are not working. I recommend that you should start it when you are still working, it is more like a side hustle. You can use a portion of savings as capital.
But before you start your business or side hustle, do first some researches whether that business of yours will be viable or just a complete waste of time and money.
Maybe you sell some products, both online and offline means, this will help you first establish your name as seller then will also provide a valuable knowledge about business.
Invest on Real Estate
Real Estate Is one of the asset today, that still appreciate or goes up in value in the future. So to achieve financial freedom in the future, is very wise that you begin accumulating some real estate products.
To invest in real estate assets, you will need some money. You can use a portion of your savings to buy some real estate asset.
You can invest on a rental property, which by the way is very lucrative both today and in the future. Or you buy a piece of somewhere in province, which by way is very cheap, you will just need to wait until that are will have a concrete road, and people begin to flock that area.
Invest on Stocks or Mutual Funds
Investing of stocks or mutual funds will be another way to achieve your dream of financial freedom. You will be putting a small of your money in stocks which in future will also appreciate in value as the company also increases its value. Well-known companies in the country are public traded, which means you can buy a portion (stock) in the Philippine Stock Exchange.
The notable companies in the Philippine Stock Exchange are the Jollibee Food Corporation, SM Prime Holdings, San Miguel Corporation and many more.
CHECKOUT THIS! How to invest in Mutual Funds Today in Philippines
On the other hand, mutual funds are group of stocks pooled together by one person, known as fund manager. Mutual Funds are great if you don’t want to monitor your position in the Philippine Stock Market or just being passive, because the monitoring will be done by the fund manager.
The Philippine Stock Market are averaging 8% – 10% yearly returns, which by the way is pretty good without monitoring those position of yours.
Investing on stock market and mutual funds do have risk, so in order for you to minimize or alleviate those risk, do first a research or gather information’s. By doing this, you will understand how stock market works and gives you an idea whether to pursue this or not.
CHECKOUT THIS! How to invest on the Philippine Stock Market Today.
Have an insurance policy
Insurance policy is another way to achieve your financial freedom, because you will not be the one to pay if something to yourself or family member, like hospitalization or some accidents. This means that your money will be kept instead of being used for this.
If you don’t have yet a insurance policy now, I can help you with this (email me at venericflores@gmail.com) to discuss the best policy for you and to your family at a very reasonable price.
Also, many of the insurance policy now are tied with investments. Which means that you’re paying an insurance policy that will cover you and also, increases the amount you will be receiving from time it will due.
My Final Thoughts
Those are some of the best steps you can do now or begin so that you will achieve your financial freedom. Some of those steps will require your patience and focus while others you may not see an immediate effect to your financial status.
Just begin those steps, so that you can achieve quicker and maybe retire on much earlier age, than others and enjoy life while you can.
