Finding answers, a few weeks ago we asked this question on our Instagram page and within the Paga team and we got some interesting answers — Responses included; The ability to buy whatever one desires without financial implications, grocery shopping without any worry, becoming a resource and not a burden to family and friends, eating whatever without overthinking it, attaining full philanthropist status in the society, becoming an angel investor etc.
Evidently, financial freedom means different things to different people. While there is no hard and fast rule to the definition, one thing to note is that personal finance is always in the conversation.
Depending on how you have defined financial freedom, there are some key factors you can hang on to as building blocks to reach your financial goals and here are 3 pointers we are recommending:
Build a strong foundation — As a general life principle, it is pertinent to start whatever you find yourself doing very well. Plan, be passionate, have a vision and work smartly towards your goal. Typically with your finances, you need to make smart early decisions that will pay off in the long run. Sacrificing your limited resources today with the mindset to yield long-term benefits is definitely a step in the right direction towards gaining your financial freedom.
Manage money effectively — No matter how high earning you can be or how well you have built your foundation unless you live on less than what you make, you will not get any closer to financial freedom. If you are seeking to always look the part, growing your liabilities with the most exotic things, you could even end up worse financially regardless of how much you make. As you earn money it is important for you to routing track your expenses, learn to save and budget, outline your scale of preference and identify your opportunity cost. This will keep you in charge and not the other way around.
Enjoy what you do — One of the most important life decisions you’ll ever make is choosing the ideal career path. Wake up daily doing what you are enthusiastic about is an almost certain way to be great and prosper from it. You should also seek mentorship in your field of discipline by gaining knowledge from experienced individuals; while you take some and run with it, you should take some with a pinch salt.
Overall, start working early towards your goals, start small and carefully, but do start.
Learn and stick to core investing principles: diversification, patience, simplicity, low expenses.
Track your net worth and your overall portfolio return each year, so you know what direction you’re going, and why.
Good luck as you define and pursue your financial freedom!
Making Life Possible is our ethos at Paga, and it is what keeps us committed to our mission of providing inclusive financial services for all Nigerians. With over 15,000 agent outlets and 8 million+ customers, we are inspired by the stories of the community we are building and the people we are empowering by making life possible every single day.