Financially freedom doesn't mean having a lot of money, it means more than just a lot of money. Financial freedom is achieved when you can live decently, in moderation, and debt-free. In this month of independence, it's appropriate to ask have we become financially freedom? Here are the signs that you are financially freedom.
1. Health and Life Covered by Insurance
The main thing that a financially freedom person must have is self-protection. Insurance is important because insurance protection helps to minimize risks that may occur in the future. Without insurance protection, these risks can have a big impact on your financial stability.
2. No worries about the future because of investment
Investment is one way to achieve financial freedom. Investments can be made in any form, the most important thing is that the investment must provide a return above inflation. It is from this investment management that you will achieve financial freedom. Investment is also closely related to protection, these two things are a sign that you are financially freedom or not.
3. Secured Retirement with Pension Fund
Preparing for retirement funds should be done early when you are still in your productive years. Apart from saving in the Financial Institution Pension Fund (DPLK), retirement can also be prepared with investment. There are several investment products that you can choose from, such as deposits, mutual funds, bonds, gold, and stocks.
4. Education Fund guarantees Children's Education
All parents would agree that education is important for a child. With a good education, a child is expected to live a more prosperous and successful life than their parents. You need to plan your child's education fund from an early age, because the cost of education in Indonesia continues to increase every year. Education insurance will help children's education in the future. Securing your child's future is one of the requirements for financial freedom.
5. Debt for Productive Activities
Debt can be a dangerous thing if it is used for consumptive purposes. One of the requirements for financial freedom is to free your life from debt. However, if your debt is converted into productive assets that can provide income, then you are already on your way to financial freedom. It's wiser to get into debt for business capital, because behind productive debt there are results that you can enjoy.
6. Preparing an Emergency Fund
Emergency fund is a very important investment activity for your life. You can do this by saving half of your basic salary every month. With this savings, you no longer need to worry if you suddenly need large funds. On the other hand, if there is no sudden need in your life, the emergency fund savings can be used as future savings.
Measuring the level of financial independence is not only by the amount of assets, savings, investments and treasures, but it can also be measured by your level of happiness and how you are grateful for what you have today and the valuable experiences you have gained so far.
Source: ojk.go.id
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