5 Ways to Be Financially Independent Today

Indonesia has been independent for 77 years, but how about your financial independence? Have you achieved it today? Being financially independent means you can provide for any of your needs without feeling stressed out. The good news is that you don’t have to be a millionaire to be able to declare your financial independence. You can apply these five smart ways to manage your finances instead.

Set Your Budget and Finance Priority
We should have goals in everything we do so that we won’t deviate from the original plans. The same goes for your finances. Goals will help you to set the budget and the finance priority. Ask yourself, what do you aspire to be in the future? Could it be someone who already has a house and car, or someone who can travel around the world?
To start, let’s track your daily expenses as well as the unexpected expenses in a month. This way, you can see which expenses need to be reduced or removed. Create data consisting of all of your financial priorities to determine which ones are obligatory and urgent, and which ones can be postponed.

Always Have an Emergency Fund Ready
If you want to be financially independent today, then you also have to make sure that your future will be full of freedom as well. This means being able to provide all your needs, whether they are planned or not. This is why you should have an emergency fund. An emergency fund is a saving that is used for emergencies such as when someone’s sick, home renovation, vehicle service, broken gadgets, etc.

Even if you’re confident enough with your current income, no one can guarantee your future income. Think of your emergency fund as a lifeboat on a cruise ship. Make sure that your emergency fund is enough for six months of your expenses. So, start saving your income and put it into your emergency fund so that you will be at ease and can achieve financial independence soon.

Don’t Change Items Too Often
We are often tempted to buy new things because we see influencers or friends wearing them when in fact, we don't really need them. One of the financial tips that can help you to be financially independent is understanding your financial condition.

Don't be tempted to have a lifestyle that exceeds your financial capabilities. Expensive stuff is good, indeed, but other cheaper options can still provide your needs.

Especially when it comes to gadgets, it’s better not to get a new one if the older one is still functioning properly. Make the best use of what you have right now according to their values. If it is damaged, broken, or no longer helps you to be productive, then it is the right time to replace it with a new one.
Start Investing

These days, saving alone is not enough to protect our assets from inflation and guarantee our independent life. Luckily, now you can start investing using your mobile app. You don’t even need to go to the bank!
As a beginner, maybe you are still scared to choose an investment instrument. However, you need to remember that all investment products have a high risk-high return concept. So, if you are brave enough to take a high potential return investment, then you have to be brave for the potentially high risk too.
As a tip, it is better to diversify your investment portfolio to minimize losses. And don’t forget to buy investment products only from financial institutions supervised by OJK Indonesia.

Press Consumptive Money
It’s okay to have debts as long as they do not pile up and burden your finances. Consumptive debt is something you need to watch closely if you want to be financially independent. Consumptive debt is a debt that is used to buy stuff or services that can’t be reused or reinvested to make more money.

Again, having a consumptive debt isn’t wrong, it is actually recommended if you want to buy expensive items without making your cash flow stagnate. But make sure to always pay your debts so that your income will not only be used to pay your piled-up debts.

Those are several ways to control your finances wisely. They might look easy on the paper, but they can be complicated if you do them all at once. That is why you can rely on PermataMobile X as your finance assistant. This mobile banking app can be used to monitor your PermataBank saving account, buy and manage investment, take loans, top-up an e-Wallet, send money, and many more. No need to go to the bank, just download the app on the App Store or Google Play to achieve your financial independence soon.