5 Habits To Help You Achieve Financial Freedom ASAP

Fatin Haris

Fatin Haris

Last updated 10 August, 2022

Imagine not worrying about how to make ends meet anymore. Yeah, that's the simplest way to explain what financial freedom is! The definition of financial freedom can be very subjective depending on your needs and goals. For some people, it could mean debt-free; for some, financial freedom means having enough to afford the lifestyle of your dreams. No matter how you perceive financial freedom, you can achieve it! Adopt these 5 habits to help you achieve financial freedom ASAP!

1. Track every cent

Do you know where your every cent goes? If you don't, start tracking now. Understanding your finances is crucial if you want to achieve financial freedom. You need to know how much debt you have, and your monthly expenses: money-in, and money-out, so you can plan your finances. Tracking your money can be a tedious job but it will pay off in the long run. You will be more cautious about what you spend your money on. 

Check out 10 Free Budgeting Apps That Can Help Track Your Expense

2. Ask yourself, “Do I need this?”

Make it a habit to question yourself before purchasing anything. Before you get the overpriced coffee, ask yourself questions like: “Do I need this?” and “Are there any cheaper options?”. Only proceed if you can justify your purchase. Most of the time, we purchase something because it's part of our routine: there’s an overpriced coffee shop near your office so it's already your routine to stop by before clocking in. 

We get it that most of us can’t operate without a cup of coffee in the morning, so try getting a cup of coffee that’s more affordable and within your budget, it doesn’t always have to be coffee in that white and green cup! If you find it hard to stop your overpriced coffee addiction routine, try to break the cycle by slowly getting the coffee every alternate day and start to reduce the frequency. Opt for cheaper alternatives or learn to make a cup of coffee yourself. 

3. Pay your debt on time

Another surefire way to achieve financial freedom ASAP is by paying off all your debts. Instead of paying the minimum amount, try to bump up your payments. You might have to sacrifice a lot of things to make this approach work but it will be worth it once you clear off your debt. If you don't think this work for you, check out 3 other ways you can settle your debts, here

No matter which approach you choose to pay off your debt, make sure to pay it on time!

4. Be consistent with your savings

You know the importance of setting aside a percentage of your income for future use. The only issue here is staying consistent. We get it! That’s the hardest part for most people. Try to automate your savings. Set an amount you want to save every month and arrange an auto-debit to a special account just for savings. Click here to learn more about savings account options.

Related: Avoid These 5 Bad Payday Habits If You’re Broke All The Time

Another way to be consistent with your savings is to challenge yourself. Have a goal and try to achieve it within a specific timeframe. You’ll be more committed! 

5. Live within your means

 We tend to follow trends, especially in this digital era: Everyone is using iWatch, so you feel the need to get one for yourself and “abuse” the BNPL feature to pay for it or perhaps book an impulsive vacation after viewing your friends’ posted vacation pictures…

If you continue to keep up with such trends, you’ll forever be in debt! Clear off your debt and avoid getting into a new one. Only spend what you earn! You can also make full use of your credit card if you own any to pay for your daily expenses. Try these simple tips to avoid overspending on your credit card.

Related: Should you pay for your daily expenses with Cash or Credit Card?

Achieving financial freedom requires a lot of effort and sacrifices, but it's doable if you discipline yourself and are committed to your goal. Try to incorporate some of these habits into your daily life to help you achieve financial freedom!