Achieving financial freedom before you turn 30 may feel like a distant dream in your 20s, but it can be within reach. There is always time to begin preparing for it.
Your journey towards your financial goal doesn't have to be about sacrificing everything you enjoy. Working towards your financial security can provide immediate relief from financial uncertainty.
At Buffett Online School, we also believe in investing in great companies you understand and utilizing Free Investing Resources to help you start your financial freedom and investment journey is one of the best ways to learn.
What is Financial Freedom?
Financial freedom means having enough money to do what you want without worrying about running out. It's like taking care of your financial worries, so you can make choices based on what makes you happy, not just what pays the bills. It's about feeling secure and having the chance to live the life you've always dreamed of without being held back by money problems.
Tips to Achieve Financial Freedom
We’ll share five valuable tips shared by Sean Seah for you to consider before turning 30.
1. Don’t Increase Your Standards of Living
"Live within your means."
Buying new things to look better and impress others is tempting as your income increases. There is no need to impress anyone because everyone only focuses on themselves.
One of the most critical aspects of achieving financial freedom is resisting the temptation of constantly increasing your living standards as your income grows. It's easy to fall into the trap of upgrading your lifestyle with each raise or promotion and salary increase, but this can hinder your progress toward your financial freedom goals.
Instead, focus on living below your means and maintaining a modest lifestyle. By keeping your expenses in check and prioritizing savings and investments, you can build a solid financial foundation for the future.
2. Test Various Ways to Build Wealth
"Don't put all your eggs in one basket."
Instead of increasing your standard of living, try to use your pay increase to look for ways to build wealth.
Test many ways of making money until you find one or two that work for you. There are multiple ways to create wealth; you must keep exploring until you find a suitable way.
It's essential to diversify your sources of income to achieve financial freedom. Relying solely on a traditional 9-to-5 job may limit your potential for wealth accumulation. Explore alternative avenues to supplement your income, such as starting a side business, investing in real estate, or pursuing passive income streams like dividend stocks or peer-to-peer lending.
Testing and experimenting with various wealth-building strategies allow you to identify what works best for you and maximize your earning potential.
3. Don’t Put Money in the Bank
"Diversify your investment."
When you are in your 20's, it's not the time to play safe. Ensure you have cash equivalent to three months of expenses, invest the rest, and start businesses.
While it may seem counterintuitive, simply stashing your money in a bank account won't help you achieve financial freedom. With low-interest rates and inflation eating away at the value of your savings, there are more effective wealth-building strategies than relying on traditional savings accounts.
Instead, educate yourself about investment options that align with your risk tolerance and financial goals. Consider investing in stocks, bonds, mutual funds, or ETFs to grow wealth. Conducting thorough research and seeking professional advice to make informed investment decisions is essential.
4. Hang Out with Wealthy People
"You are the average of the five people you spend the most time with."
This saying holds true when it comes to financial success. Surrounding yourself with financially responsible and successful individuals can inspire and motivate you to improve your financial situation.
Try to seek out mentors or join networking groups to interact with like-minded individuals who have achieved financial independence. By observing their habits and learning from their experiences, you can gain valuable insights and adopt similar approaches to money management and wealth-building.
For Buffett Online School, we have an exclusive community where like-minded investors gather to learn and discuss different stocks every month, so we can constantly improve to become better investors over time.
5. Be Patient and Realistic
"Rome wasn't built in a day."
Building financial freedom takes time, patience, and perseverance. Setting realistic expectations and understanding that wealth accumulation is a gradual process is essential.
Avoid get-rich-quick schemes or risky investments promising overnight success.
Instead, focus on developing your long-term financial plan, setting achievable goals, and sticking to a disciplined saving and investment routine.
Find your way in the group of people who are creating wealth. Too many people give up on this journey because of unrealistic expectations. They think they will become financially free in a few weeks or months. You must set aside 3, 5, or even 10 years to build wealth.
Remember that your financial freedom is a journey; small, consistent steps taken over time can yield significant results.
Sean also shares a quick summary of his Tik Tok video on how you can achieve financial freedom before you turn 30.
Achieving financial freedom in your 30s requires a combination of innovative financial habits, disciplined saving and investing, and a willingness to explore diverse wealth-building opportunities.
By avoiding lifestyle inflation, testing various income streams, seeking investment alternatives beyond traditional savings accounts, surrounding yourself with financially successful individuals, and maintaining patience and realism, you can pave the way to a financially independent future. Start implementing these tips today, and empower yourself to take control of your finances and work towards a life of financial freedom.
Join Our Free 2-Day BOS Value Investing MBA
At the Buffett Online School, we believe in learning the right investing mindset and system, so we can start cultivating emotional detachment and grow our wealth safely and substantially in the long run.
Our next 2-day BOS MBA Value Investing Online Bootcamp is happening soon! We will teach you how to use Warren Buffett's proven investing method to maximize your portfolio.
Remember, you have the choice to cultivate the right investing mindset and unlock your potential to build wealth through intelligent investing. Together, we can create a network of educated investors who make informed decisions and contribute to their financial well-being!