Five tips to be financially independent

Financial independence. It's one of the freedoms we all want. It doesn't matter where we are in our lives. There's just this nagging feeling inside us that tells us to work toward living worry-free.

But how does one do it? How can we not be concerned about bills while still enjoying life?

We can. You certainly can. And with proper planning and lifestyle changes, it's attainable.

Want to know how? Read on and find out how you can kickstart your journey to financial freedom this Independence Day.

Make a list of your daily expenses. Is it hard to imagine how you can save with the income that you have now? Have you ever tried keeping track of your daily expenses? Seems like a lot of work, doesn't it? But if you take a step back, you can get a clear picture of where your money goes and where you can probably lessen your spending.

How about limiting your daily pick-me-ups and online orders from five to three times per week? Maybe this can get you to save up to P500 per week. Make this a habit and you will be surprised that you already have savings.

Build your emergency fund. Financial advisors say that an emergency fund should cover your expenses for three to six months. But don’t be intimidated by this! An emergency fund can be built over time by starting with small and sustainable allocations every month. Start with the money you can manage to put away and build the habit. The key here is not to spend this fund at all, so we recommend that you put this in a passbook account. It’s better to manage and track this, too.

Add to your income. A famous pop star sums up the best way to get what you want in life, “You better work.” Look for ways to add to your income source. There are multiple options you can try out. You can upskill to help you get promoted and have your salary increased. You can also do side hustle like online selling or having items for rent. A little hustle can go a long way in taking you to your best life.

Manage your credit card wisely. We all know credit cards make it simple for anyone to buy anything. And when used properly, it's a great asset. But what about those things you buy with your credit card? They accumulate and by the time you know it, you're drowning in credit card debt. Here's a tip: before you buy that high-ticket item, pay off your last big purchase. And try not to "swipe to card" your meals or drinks. Pay with cash and save your credit card for the big stuff.

Start investing. To most, it can seem daunting. But it isn't, really. Just start with small and manageable amounts you can live with. Try putting in P1,000 every month in an investment fund. Go for investment-linked insurance policies so you won't have to worry much about the investment part. Get life coverage on top of that, too. Remember the adage "a little goes a long way”? It's true.

Starting your journey to financial freedom does not have to be stressful. You can start with small and sustainable changes in your lifestyle. Ultimately, you have the power to make a positive change in your life. And all you need is a partner to that freedom!

EastWest Ageas Insurance offers a variety of insurance solutions to match your financial needs. It offers both traditional and investment-linked plans to assist you on your path to financial freedom.

Begin with little steps. Make one right now. Make it with EastWest Ageas.

EastWest Ageas Insurance is the insurance provider of choice for your needs. It combines the financial strength of EastWest, which has nearly 30 years of local banking experience, and Ageas, a global insurer with a nearly 200-year history.

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For inquiries, call 893-93924, email [email protected] or visit ewageas.com.ph. Follow EastWest Ageas on Facebook and LinkedIn.

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Editor’s Note: This article was provided by EastWest Ageas Insurance.