HomeFinancialAchieving Financial Freedom in Productive Times, Is it Possible?

Achieving Financial Freedom in Productive Times, Is it Possible?

Financial freedom or often called financial freedom may be a wish list for the millennial generation who are currently in their productive age. In a sense, financial freedom is a situation where a person has full control over the money they have and does not let money get in the way of decisions in life. Often financial freedom is associated with early retirement or working only if you want because that person can live on passive income, without installments, and live no longer worrying about money.

Financial freedom is actually personal and in accordance with the personal goals of each person. For someone, financial freedom might mean being able to travel around the world, while for someone else, financial freedom might mean being able to send their children to the best colleges. So, everyone has their own version of financial freedom. How about your version of financial freedom?

Before reaching a state of financial freedom, generally people will go through several stages in their financial situation, namely:

  • Dependencies. This is the stage when you still have no income and are completely dependent on others.
  • Solvency. At this stage, you begin to be able to meet your own needs, but sometimes you still need help from people.
  • Stability. At this stage you can meet all your own needs, pay off some debts, reduce expenses, and start saving. But there is still the possibility that you still have productive and consumptive debt.
  • Debt freedom. At this point, you have been able to set aside money for an emergency fund because you have paid off most of the debt. You no longer only have enough money to survive, but also manage to improve your financial situation for the better.
  • Financial security. You have started investing in valuable investments that can generate short, medium and long term returns. You also begin to enjoy the benefits of the investment you make.
  • Financial independence. You continue to make solid long-term investments until a point of income from investment alone can even cover the needs of your current lifestyle.
  • Financial freedom. This is a condition where your financial condition can meet the lifestyle you want without working. Money can flow from passive income.
  • Abundance. If your income continues to flow and your financial condition can meet the lifestyle you want, it is possible that you can even reach the final financial stage. At this stage you have an income that even exceeds your own needs. So what needs to be done is to manage wealth or consider plans to reduce it.

If you plan to achieve personal goals and have financial freedom before entering retirement age, you can take these steps:

Understand your financial position and condition

Everyone has a financial profile along with their respective risks. Well, before making a plan to achieve financial freedom, you must first know where the starting point is. See in detail how much debt you have, how much savings you have, and how much money is needed to achieve personal goals.

Whatever your debt is now, commit to paying it off. Not having debt is one of the steps that must be taken to achieve financial freedom. Then, calculate the total assets owned, ranging from savings, investments, and others. Also take into account the monthly salary and additional income that can be received every month.

Track every expense

The next important step towards financial freedom is knowing where the money is going. You can use the FINOO application to make it easier to record daily finances. Keeping track of finances will make it easier for you to know how much money was spent, in what category it was over budget, how many assets, and how much debt you had. FINOO also has a Dream Saver feature that makes it easy for you to set financial goals, can track the progress of achieving them, and know when you will achieve these financial goals.

Is the current income sufficient?

Financial freedom is a state where you no longer think about money for the things you want to do. Meaning, you must have an income that can meet all your needs, pay off debt, and set it aside for saving and investing. If you currently work in an office, try to review whether your current career and income support you to achieve financial freedom? Another alternative is to look for additional income that can increase assets.


The value of the money you have can gradually decrease due to the influence of inflation. To avoid this, investment is the right choice as a way to achieve financial freedom. Investment selection must also be done properly by considering the period of time, risks, and returns provided.

Another thing that is also needed to achieve financial freedom is financial knowledge. The more financial knowledge you have, the more accurate financial decisions you can make. Continue to learn about finance, from the basic to the specific through news, books, podcasts, webinars, social media, and other sources of information.


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