Financial freedom is the state where an individual can easily pay off his/her living expenses since they have enough income sources that allows them not to be dependent on others. After getting this freedom, money is not the dominating force in their personal life. In other words, at this point, an individual is free from worrying about the source of their income. We are aware of the importance of financial independence for married or aged people. However, not many people are aware that it is also essential for college going students or youngsters. I believe that the following are six reasons why financial freedom is vital for students.
Enough opportunities to pursue hobbies
Students often think of following their hobbies along with their studies. However, they often don’t have enough resources and savings to afford their dream hobbies. Therefore, they have to depend on their parents to pursue their hobbies. On the other hand a financially independent student has ample opportunities to afford hobbies such as travelling, sporting events etc. A financially independent person can also involve in pursuing music, art or photography. Students can use these skills to earn money or help others. However, they should use their monetary resources efficiently, and shouldn’t just go around wasting their money on non-resourceful things or activities.
Financial freedom Makes easier to make investments
Financial freedom makes it easier for students to make long-term investments in stocks, real estate and bonds. They can also hire an experienced asset manager to handle their investments. This will save their time which can be utilized for pursuing their studies. However, young students must take professional help from experts before diving into the world of investment. Hence, it is beneficial to read books written by experts who have lived their lives while managing their savings and investments. Students can also get help from personal blogs, books and financial articles written by experts.
The list of some good books on financial freedom includes the following:
Wisdom From Rich Dad, Poor Dad by Robert Kiyosaki and Sharon Lechter.
Think and Grow Rich by Napoleon Hill.
The Millionaire Next Door by Thomas J Stanley.
Mr Money Mustache
The Mad Fientist
Financial freedom helps in living a confident life
Financial freedom provides an opportunity and confidence to young adults to take risks in their lives. They feel more confident to fulfil their financial obligations of their family. Also, it provides an opportunity to make their own choices.
Financial independence gives students the courage to take bold and risky decisions. Moreover, it helps them to adopt a clear and straightforward life path. This life path makes it easier for them to live a healthy and secure lifestyle.
Financial freedom improves the confidence level in youth. Financial freedom makes them realize their abilities to become financially independent. This is important as financial independence helps them to support their family and themselves.
Financial freedom helps in living a healthy life
Youngsters enjoy better health after becoming financially independent as they don’t have to stress out for their financial issues. They are fully equipped with monetary means to finance their studies and family expenses.
Health experts believe that there is a strong correlation between financial freedom and mental well-being. According to a survey carried out by large US-based banks, 81% of respondents revealed that it is easy to achieve life objectives when they are in good financial condition, and 70% of respondents revealed that financial freedom improves their physical and mental health.
Additionally, it has been observed that a sound financial position also affects the attitudes, behaviours and emotional stability of the young generation.
Focused life with financial freedom
Financial freedom provides students an opportunity to live a focussed life. Since, they don’t have to worry about their basic life necessities, education expenses and family expenses. They have enough income sources and savings to fund all their expenses. Then they can also plan easily for their married life or family life in the near future.
In other words, it can be said that financial freedom changes the mindset of an individual. Since, then he or she can easily use his/her time in some extra activities to help other people in businesses or charity.
Financial freedom Helps in making long term planning
Financial freedom provides an opportunity for youngsters to plan for their future life. A financially independent young student has enough money and savings to plan for their future. A financially secure mind can plan where it wants to be in the next 15 to 20 years.
Students can use budgeting plans to carry out long term planning. Yearly plans are the most popular way of doing long term planning for 5 to 20 years. Moreover, they can also use budgeting software to create long term budgets. In this regard, Microsoft Excel is the best affordable budgeting software.
Crux of the Matter
Financial freedom is a blessing for students. However, there are some red flags for getting financial freedom at a young age. Parents must keep an eye on their children while they are enjoying their financial independence. They should guide their youngsters about the correct utilization of this money as it has been observed that often young adults waste their extra money on friends or useless hobbies. Therefore, parents must discuss with their children about different financial options after they become financially independent.
Parents can also set an example by implementing financial freedom related strategies in front of their young children. They can also teach them a better usage of their funds through techniques such as budgeting and savings. Moreover, parents can also advise their kids about setting short-term financial goals, which could help them gain further confidence to achieve many larger life goals.