iSAVvy: Financial Independence — The Lows

Low on cash? What have you been spending on? Image from: Photo by cottonbro from Pexels

Financial independence is essentially able to sustain your lifestyle with the amount of money you have without working. This is one of life’s most difficult problems everyone has and many are unable to overcome it.

—— Dickson Idlier

I am not a financial consultant. What I wrote here is purely my opinion.

The road to my financial independence is essentially be low on debts and expenses and high in investments and assets. How to control your expenses and debts depends on what is essential to you. I prefer rejecting any instalments (debts) whenever possible and have a simple lifestyle. After these, then build up your savings, investments and assets. This is how I did without many details but I think it is the easiest to get started.

Ways to keep a low debt and expenses:

• Food is essential but not all kinds of food. Try keeping food expenses low but not compromising on quality. Reduce eating too expensive or junk food. A plant-based diet or more plant-based food is more desirable.
• No paid sex, smoking, gambling, and excessive eating. Only harms your health but only a moment of satisfaction. Not worth it.
• Pay credit card bills in full. Ask for a waiver for card fees and late charges.
• Limit instalment (Debts) whenever possible. It “bleeds” monthly and accumulates as you get more. Pay full in cash or shorten debt period whenever possible.
• Refrain from having upgrading mindset to get the latest or the best item available. Makes you pay more for the similar items you already have. Unless the current item doesn’t meet your needs, stick with it.
• Expenses cannot be avoided, like transport and utility bills, try your best to keep as low as possible. Walk for short distances (within 15 min or so) and gain extra exercise instead.
• Avoid over-consumerism. It is getting people to blindly work for money for materialistic stuff but unable to satisfy themselves for a long period.
• Have a minimalist mindset. Only buy and keep essentials stuff and non-essentials stuff can be sold, give away or throw. An occasional indulgence is fine. Be surprised how much space gained and how much money saved with a simple change of mindset. 

The only way to get out of debt and lower expenses is to control spending. Simple solution but difficult to implement. I suggest stop thinking and start acting on it.