The verb procrastinate, which means 'to defer or postpone', has gained strength in the midst of the contingency produced by COVID-19 and more so in relation to the topic that brings us together in this article. Achieving economic independence, whether as an individual or entrepreneur, is so necessary that before you know it, it is almost an obligation. Therefore, We must decide quickly or at least have a plan designed that will serve as a guide beyond the duration of this crisis.
Financial freedom is a term that encompasses the possibility of having time and money, since having one without the other could leave our plan unsupported or limping.
Achieving financial freedom should not be a leap into the void, but rather a conviction backed by training and advice. For example, if we have a job, it is not enough to just save, we must dedicate time every day (maybe an hour) to learning about the subject in question. We should even plan to become independent from work: how can I take the step without my personal finances suffering or collapsing?
In a nutshell, If you want to achieve financial independence, you have to prepare and work hard for that goal, as this will reduce improvisation. However, the need for greater financial education in the region is clear: according to Diana Mejía, senior specialist in Productive Development and Competitiveness at CAF-Development Bank of Latin America, in an interview with the economic newspaper Portafolio (July 2019), in Latin America, only five countries have ENEF (National Strategy for Financial Education) per se: Brazil, Chile, Colombia, Mexico and Peru.
Despite the above, There are many options to train and advise us on the topic of financial freedom, For example, in terms of budgeting, which is basically a financial tool for calculating and negotiating in advance the income and expenses of an economic activity.
After creating a budget that helps us understand the viability of financial freedom, comes a key issue: saving. It is advisable to save at least 10% of your income for emergencies or to invest in new projects. This means that, to achieve this dream, organization and austerity are key.
You have to know how to surround yourself well
Financial freedom is a dream for many, but it is not achievable for everyone. Let's say that it is a goal that we can reach through a path that is not without complications and a demanding journey that requires, for example, being an entrepreneur and an innovator. These two strengths go beyond the creation of a company, being vital when facing those work challenges that could bring us closer to economic emancipation.
All of the above brings us to a crucial point that is curious: To achieve economic independence, we need others, so having a good personality when it comes to relationships is important. As the old saying goes, “It is better to have friends than lords”, which is the same as “It is better to have friends than money”. An adequate network of contacts can be beneficial and essential, for example, if you are looking to promote and stabilize a business idea or venture.
Financial freedom does not mean that we can do whatever we want, on the contrary, it is telling the world that our commitment is to work and dedication, It may not be something that will make us rich, but it can give us the option to do activities that allow us to enjoy life more, as well as put us on the path to achieving our financial goals.
In conclusion, the dream of economic independence is a constant invitation to work to achieve it, most likely leaving aside great financial solvency, but coming hand in hand with issues such as being able to have your own things and loving what you do. However, not everyone is willing to go all in on this idea, as was made clear by a study carried out a few years ago by the Centre for Sociological Research in Spain, which found that 65% of people between 18 and 34 years of age prefer to flee from independence.
Remember that, If you are on the path to financial independence supported by your own business, at Empresas SURA we can advise you.