Financial freedom may be the ultimate goal for many South Africans in order for them to live a stress-free life.
However, this goal may seem to be out of reach, considering the rising costs in the country as well as increases in inflation and interest rates.
Three finance industry experts share what financial freedom means to them and how you can achieve it.
What does financial freedom mean to you?
Tlalane Ntuli, chief marketing officer at Metropolitan Life, said: “Financial freedom is a journey in which we have choices and the freedom to exercise those choices concerning our finances.”
According to Triya Govender head of Marketing at Floatpays, financial freedom means that people have enough financial resources to not only get by but also thrive and live a debt-free life.
John Manyike, head of Financial Education at Old Mutual, said: “Financial freedom means having enough financial capacity to cater to your monthly financial responsibilities and afford some of life’s luxuries without having to source other income streams for a boost.”
What are the benefits of financial freedom?
Govender
1. If you have lower levels of financial-related stress, your mind will be free to focus on other important parts of your life
2. Financial freedom will allow you to create generational wealth for your loved ones.
Manyike
1. You can make conscious decisions about your spending, which will allow you to have a healthier relationship with money
2. With financial freedom, you will be able to absorb economic shocks because you will be prepared for it.
Ntuli
1. Financial freedom will allow you to take control of your finances as well as allows you to plan for the future and long-term financial goals.
How can people achieve financial freedom?
Govender:
1. Reduce your debt
2. Create a plan on how to save money
3. Learn how to manage your personal finances.
Manyike:
1. Track your finances from something as big as a loan to as little as takeaways
2. If you are deep in debt, simplify your payments by consolidating your debt and cutting down on unnecessary expenses
3. Enlist the help of a financial adviser to develop strategies to help you meet your financial goals.
Ntuli:
1. Review your financial situation by taking a realistic look at where you are and what you need to do to get to where you need to be
2. Draw up a budget to know where your money is going each month.
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