Financial Education Achieving financial freedom, where do I start?

Achieving financial freedom means having enough savings, investments and money control to have a peaceful life; that is, where there is the possibility of covering the necessary expenses to live and those that are not essential but that provide satisfaction and recreation such as traveling, learning something new or buying new things.

Congratulations, if you are reading this it is because you recognize the value of financial freedom, the first step to achieve it is already done. The next step is to identify all those elements that prevent reaching it in order to eliminate or reduce it.

3 habits that prevent financial freedom

Many people think that achieving financial freedom is only possible if a person earns a lot of money, the reality is totally different, anyone is capable of achieving financial freedom to have a carefree life.

These are the most common mistakes that are preventing you from having financial freedom.

Spend more than you earn.

According to the Federal Consumer Protection Agency (Profeco), young people between the ages of 15 and 29 make expenses that exceed their budget (54%). The National Survey of Household Income and Expenses 2018 (ENIGH) reveals that despite the reduction in income, Mexicans had more expenses. Spending more than you earn is the number one inhibitor to financial freedom.

Delay retirement.

If during your working life there is no savings plan to cover expenses during retirement, when the time comes to retire, you may have financial problems. According to data from PENSIONISSSTE, only 1 in 10 Mexicans voluntarily saves in their Afore.

Having debts.

According to reports from the University of the Valley of Mexico (UVM), 79% of Mexicans acknowledge having a debt. Debts are obstacles that prevent financial freedom, because it is money little used.

4 habits that help achieve financial freedom

It is easy to achieve financial freedom if there is a real commitment to the intelligent use of money, for this there are habits that facilitate this task.

Make a budget.

A budget helps to have better control of income administration, in this way expenses are not exceeded, it is easy to distribute finances intelligently and there is savings for emergencies.

Set goals.

Goals are really important because they keep you motivated and focused. Achieving financial freedom takes time, the results are always immediate, but when you keep your goals in mind, daily effort produces a great reward.

Implement automatic saving.

Automatic saving is an easy strategy to save without realizing it. You just have to select an amount to save and a period of time, a month, a fortnight or every week. The system automatically takes that money from the bank account to allocate it to savings.

Increase financial culture.

When people have a good financial culture, they make better decisions regarding the use of their money, they avoid debts, they intelligently use the financial products offered by institutions.

Remember, financial freedom helps to have a better quality of life. It is an achievable goal with the necessary knowledge and habits.