Financial freedom means you don’t have to worry if your financial capacity would meet your needs. The most common interpretation of this is to earn more to cover all your expenses. But in truth, it doesn’t have to be that way.
You may like to think of life as a struggle, and that it is necessary to prove your worth by earning more. But haven’t you thought that there are hundreds or even thousands of people who are making do with an income that’s probably just half of what you make? The simple reason behind it is because their lifestyle is cheaper than yours.
So what if you also start thinking of financial freedom as matching your income with the appropriate lifestyle? People are so pressured to keep up with the latest models of cars, gadgets, and whatever trends the market comes up with. But don’t base your wants on these. If you start earning more, then, by all means, you could spend more. Here are a few things you could cut costs on.
Keep your rent expenses low
Having a home is a basic need. You can’t do without it. However, as many financial advisers say, paying rent is a dead investment. So however you are tempted to rent a beautiful apartment, think rationally. You can opt to temporarily rent a simpler one and save up the rest of your money so you could make a down on an apartment you will own. Find a mortgage company that offers good terms and start working on the requirements. As soon as possible, live in a place that you own.
Be practical when you design your home. Think of what you need and base your design on it. If you like entertaining guests then it’s logical for you to have spacious living spaces. But if you mostly keep to yourself, design a space that is enough for you. Maximize architectural designs that allow you to save on energy in the future. For example, high ceilings and wide windows would make your home naturally cooler.
Save on your food
Food is another need that you could never do without. But this expense could also be cut. Produce your own food. If you get the chance to invest, prioritize food security. You could already have a sustainable farm for one acre of land. If you don’t have this capacity yet, do some backyard vegetable gardening. This could take care of some of your grocery needs.
Cut down your expenses by refraining from eating regularly in fancy restaurants. You could occasionally indulge in a craving, but make it at the most once a week. Or maybe make it a treat to yourself when you accomplish something important.
If you also keep to a nutritious diet, you wouldn’t have to stock on unnecessary goods like chips and sweets.
Cut down on electricity expenses
Electricity has become one of the basic commodities we couldn’t live without in this modern world. Cut your expenses in the long run by generating your own electricity. Solar panels are already becoming popular. If you couldn’t make your entire home off-grid yet, you can have enough panels installed to use for your simple lighting needs.
Think of your routine daily and what you could cut down. Do you use your dishwasher right after a meal? How about using it only on occasions when there are too many dishes to wash? Do it manually for the rest of the time. If the women in your home blow-dry their hair every day, encourage them to just air-dry instead. There are several little things that could be changed.
Sometimes the choice is between saving time or saving money. When you make your decision, consider this. If you were not doing that manual task right now, what would you be doing? Will you earn more than what you would’ve been saving? Your decision doesn’t have to be monetary either. The important thing is that you should be doing whatever has more value to you.
Move to a different country
This is a bit on the extreme. But many countries have lower costs of living. If you could have a job in your home country that allows you to do remote work or could assign you to a different country, consider this option. However, if you still have to look for a job in that country, see if an ex-pat position is available. If you apply for a position that is intended for a local, you will be receiving a salary that is based on their cost of living.
There are other aspects of your life where you could cut your expenses. Review all the things you do and see if they are necessary. In the end, everything is to your discretion because the way you live is up to you. Just don’t live beyond your means so you don’t live a life of pretense.