Most people may have different perspectives of financial freedom; however, the concept of being financially free is almost similar.


When one has a significant amount of savings or income, it means that this person does not need to struggle to meet month’s end. And when a person who can live comfortably with the ability to sustain or maintain his/her lifestyle without any financial worries and he/she does not need to work that much, this is what I called Financial Freedom!

This doesn’t mean that you must be of high net worth or have lots of money in the bank and investments to be financially free. To put it in simple terms if you are spending less than what you are earning, having a peace of mind, the satisfaction and freedom to do what you want to do without any financial stress or pressure, you are already financially free. One good way will be building up some residual incomes. Doing the job once and getting paid on a regular basis. Sounds too good to be true. It is not.

5 Steps To Financial Freedom

1.2 What do you gain from achieving financial freedom?

There are so much to gain upon attaining financial freedom.

1) You will be financially freed. You are NO longer bounded and trapped within the vicious cycle of financial stress and pressure.

2) You can spend more time with your family, your love ones.

3) Debts free – the way to financial independence.

4) Freedom to pursue other activities. E.g. Travelling, hobbies, or perhaps a chance to accomplish your childhood dream, etc…

5) Not having to work as much.

1.3 Misconceptions of financial freedom

People often thought that gaining financial freedom allows you to spend freely which is entirely wrong. As mentioned, you do not spend more than you earn. You do not want to trap yourself with debts or long term installments with interest accumulating over the months or years. The worst outcome of unplanned spending could lead you to bankruptcy.

Most importantly, learn to plan your spending. Not buying on impulse or shop for things you do not need. Differentiate between things that you want and the things you need. Focusing on the point again – you do not spend more than you earn.

1.4 Opportunities around us

Many times, we feel that having a fixed or little income is just not enough to sustain your daily needs. There are so much more things to pursue in life. Embrace changes around you and turn them into opportunities, read the Top 10 Habits of Highly Effective People from Runescape Money.

Get rids of the “wants.” Knowing what your “needs” are. With difficulty maintaining your “needs,” there is no way to sustain your “wants.”

Plan those “extras” you have saved for a good use by using it to generate more revenue. There are many ways to do it.

E.g. putting your money in a good savings, insurance or investment plan, investing in business opportunities, Google AdSense or AdWords if you have your business or contents online (e.g. blog), etc…

1.5 The road to achieving financial freedom

Never stop planning for your future. For your children and their education, your retirement, savings, and investments, etc…

Get rid of credit cards to avoid debt, unless you have calculated and planned for your expenses before using the card, making partial or minimum payment will incur finance charges levied by banks, hence putting you further in debt!

Control the spending. One tip is to set a lower credit limit for your credit card, allowing you to spend no more than the credit limit amount.

Try to be on the budget in every possible way and do it for the long term. You will be surprised with the “extras” you can save. Always spend less than you earn.

1.6 A personal opinion

Never give up. Persevere. Plan, Plan, and Plan! Look out for opportunities around you. I wish you all the best and may the road to obtaining your financial freedom be a success.