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Tuesday, 5 March 2013

Being Financially Free

By Anne English


Money lets us survive an economically-driven society. We all need it not only to acquire the basics, like food, shelter, medicine, and clothing, but also to allow us enjoy the comforts in life, such as living in a large residence, going on a grand vacation, and riding a cool car. And to earn money, we work for other people or manage our own business. We all want to be financially free someday. Whether we hope for a better lifestyle or are happy to live a simple life, we all like to enjoy life to the fullest without stressing where to get the money to put food on the table tomorrow or pay the bills.

If you are financially free, you have more options in life. You get to do plenty of things without worries if you have the funds to do them. You can quit your job even before getting to the retirement age, give your child quality education, and purchase comfort. Financial independence is not about how much or how little you make. Even if you are generating six figures, you are not financially independent if you're also spending that much or you need to give up a lot to keep your lifestyle.

Real financial freedom is not about enhancing your wealth but rather decreasing your expenditures. It's being free from financial obligations. There are people who work harder than usual, forbidding them from enjoying life, to maintain their extravagant lifestyle. They increase their wealth to acquire various stuff, but in the end, they just acquire more bills to pay. These acts negate the essence of being financially free.

Wealth management is one way to achieve financial independence. You can boost your income or decrease your spending to widen their difference. Practicing discipline in spending, saving up, and investing on assets that will ultimately generate revenue on their own to cover future expenditures can help you prepare for the future.

But before investing in anything, know the risks first. Ask an expert and study your available options. Not all investment schemes are right for everybody. If you're in Singapore, you can consider CPF investment or other investment schemes. And if you want to know more about insurance options, an insurance planning Singapore firm can help you address your concerns.




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