One of everyone’s dreams is to have independent financial conditions. Even here, you certainly also have that dream because when you are in a state of financial independence, it feels like you no longer need to worry about other things, especially in terms of finances.

Everyone can reach a state where they are financially independent, regardless of the profession they are in. It’s just that here everyone has a different journey between each other to be able to achieve financial independence.

To be able to determine whether you are a financially independent person or not, then you must have a financial checklist to be achieved. When you have achieved the financial targets that have been set, then later you can do a check list until finally all of your financial targets are met.

But actually there are signs that can be used as a reference whether here you are one of the financially independent people or not. The following are some signs when you are financially independent that you need to know.

What are the Signs of Someone Financially Independent?

Have No Monthly Cash Flow Problem

The first characteristic of someone who has experienced financial independence is that they do not have monthly cash flow problems. Those who are financially independent certainly have no problem with the flow of money each month. Here as long as the person has a job and regular income, they should have no problem with monthly cash flow.

Free from Consumptive Debt

Those who have consumption debt automatically do not have a good enough turnover of money each month. That’s because when you have consumer debt, it means that here you have not been able to manage expenses and income in a balanced way. You can be said to have been free or financially independent if you do not have consumption debt.

Have an Emergency Fund

The next feature is that you have prepared and have an emergency fund. Not many people are well aware that an emergency fund is really important. Especially during a pandemic like now where emergency funds are a lifesaver.

Collecting emergency funds is indeed quite annoying, because it keeps your money stuck and has no interest. However, an emergency fund is a lifesaver for your family’s finances, especially in critical times.

Owning Your Own Home

Studies from Harvard show that one of the characteristics that a person is stable is that they have their own home. People who already have a house will certainly feel more stable. Psychologically the house is a basic need for humans. Where it finally makes a person more stable is the house is their own.

Have Savings and Investments

If you have good financial planning here, of course, the financial checklist will be fulfilled later. Investment and savings are one of the instruments used to support financial planning so that later it can be realized. You just need to find one of the investment instruments that really fits your risk profile and needs. That was a complete review of what are the signs that someone is financially free. If you are reading this review and see these signs in you, then congratulations, here you are one of the financially free people.

arti

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