How To Achieve Financial Freedom

Let’s talk about money!

Before we begin, I would like to clarify that this article is not about quick steps to money-making but to guide you on spending, savings, and improve your financial decisions.

 Whether you're in your first or final year, you need to be financially literate. We all spend money and one of the reasons for going to University in the first place is to become financially independent. Don't you think it's necessary to see and know how it all works? 

 Finances refer to the money available to you and the way this money is managed. The money available to you depends on the category you fall into. Let’s take a look;

•        Self-funded: You receive little or no support from your family. Little would imply that money comes in irregularly (if it ever comes at all).
•       Supported: You receive financial support from family or friends. You can pick up your phone to call these people for financial assistance.
•      Scholarship student: You are funded by a religious organization, corporate body, or philanthropist. A self-funded and supported student can fall into this category.

Why financial literacy?

You can’t run away from it. It's that simple! Whether you like it or not, you want to make money. You desire to improve your living conditions and opportunities but then, you need money to do these. If you don't plan your finances early, you'll eventually have to even when older! It's an advantage to get things right and start your journey to financial freedom early.

How to be financially free

Live within your means

Are you self funded? Or supported from home? How much do you receive in a week or maybe a month? Do you only have money at the inception of a semester? Know where the money comes from, and how often it comes.

Now that you identified where the money comes from, ensure you don't spend more than you earn. Live within it. Don't borrow money that you can't return.

Budget

A budget is an estimation of your income and expenses. Your income comes in and your expenses go out. Ideally, income should be more than expenses if you want to be financially free.

Your budget will estimate your expenditure for a week or a month. It should contain categories for basic expenses, lifestyle expenses, religious commitments (if you have any), and savings.

Why budget?

You can monitor your expenses: You're able to control where your money goes and be a master of your money.

It helps you cut out unnecessary spending: You’ll have to eliminate what you don't need and stick to what you need. 

 Stick to your budget

It's a pointless affair if you never stick to your budget. It's okay to not get everything right at the initial stage. Constant practice and discipline will make progress.

Save

Determine to save a percentage of the money you receive. While you may save to meet up with target needs, don't save to spend alone. FinTech apps now help people cultivate this culture. You can sign up on any of these platforms.

How to increase your income

 Apply for scholarships

Some people think that scholarships don't exist, or that fairness is impossible. This is not true! First and second-year students have a better advantage. The requirements are not usually burdensome. Don’t disqualify yourself for scholarships by refusing to apply.

Even if you aren't selected, you tried at the least.

Take up part-time jobs

The university community usually consists of businesses that might need your services. There are tutorial centers, restaurants, and maybe a sales attendant that can give you some extra change. Read notice boards to stay informed.

 Start a business

Here, you gain diverse skills like negotiating skills, communication, and innovative skills. This will be more necessary if you're a self-funded student that needs to make money to survive. Identify the basic needs of people around you and find a way to meet those needs. Even if you’re a supported student, starting a business is also a great step towards financial freedom.

 Bear in mind that business is not for the faint-hearted. You need to be ready to put in the work before you can truly succeed. Isn't that true for any human endeavor?

Spend your break wisely.

Seriously, if you can consider having a job so you can save up, please do so! If taking up a job isn't that necessary for you, you can choose to learn a skill or improve your academic capacity by taking internships.

 Invest

It's always good to invest your money if you have discretionary income (money you don't need). Fintech apps already offer platforms for investment. However, do your due diligence before putting your money down.

You also need to be committed toward financial literacy. There are online platforms where you can learn for free like MoneyAfrica and ThriveInvest. Read up about them. There are books you can also read to stay financially-informed. This won’t cost you anything but only your time, and don’t you think it’s a good bargain?

My top recommends will be Rich Dad Poor Dad, Smart Money Woman (even if you're male), and The Richest Man in Babylon.

I’ll be leaving you with three key questions you should ask when you’re about to spend

•        Do I need it?
•        Is it necessary?
•        Can I do without it?

These questions will help you control your spendings if only you give sincere answers.

To conclude, being an undergraduate does not prevent you from learning about money management.

Action Point

•         Commit to your financial literacy today!

The final part of this series comes up next week! I'm thankful for as many as have been on this journey with me. Please get your friends and coursemates here to learn too.

Thank you very much for your time, I’ll see you next week!