3 STEPS to attain Financial Freedom
- Chun Haw Tan
- Apr 11, 2020
- 2 min read
“Do not save what is left after spending; instead spend what is left after saving.”
― Warren Buffett
Most people’s common error in their spending habit is to save after spend. Therefore most people had became cash poor and worst of all unable to achieve Financial Freedom in life. This article is sharing the three (3) crucial steps in attaining Financial Freedom in life.
Clear Financial Goal Make a checklist or dream board to list down all the targets (i.e. dream car or home etc.) and achievements (i.e. lifestyle and education etc.)that you desired to achieve in life. Next, calculate the estimated figures required to achieve or complete the goal. Then, make sure your financial goal(s) consist of SMART criteria which are: Specific, Measurable, Achievable, Relevant & Timely. Alternatively, you may get advise from a professional financial planner to set your financial goal(s).
Force-save Consistently Our recommendation for you to force-save your hard earned money via following income distribution structure: 20% - Wealth Accumulation (Investment/ Savings to attain Financial Freedom) 10% - Wealth Protection (Insurance to secure your wealth against risk) 10% - Family Obligations (Allowance for your old aged parent / savings for children) 60% - Spending (All other spending)
Check your Financial Goals Periodically Gauge your financial performances on half-yearly basis to ensure that you are moving towards your financial goal(s). Solution(s) must be sought immediately if the sail is out of course and you might need a professional advice from a experienced financial planner.
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