It’s never too early to plan for a life of financial freedom in which you have enough money to live the way you want. You don’t have to be born into wealth or land a job that pays millions to do it, either. If you’re heading off to college and wondering if you must work for decades first to enjoy your life, the answer is not necessarily. You can start laying the foundation today for a life of financial freedom.
Paying for School
Going off to college can feel like the opposite of financial freedom because it costs plenty of money and often starts with taking out loans. Yet a bachelor’s degree is a minimum requirement for many jobs, and it may be necessary in many fields. You’ll likely make more money if you start your working life with a college degree. Grants and scholarships can help cover some of your costs, but you may also need to take out some student loans.
However, you might encounter the paradox of being unable to get a loan without a credit history and unable to build up a credit history if no one will loan you money. This is where a student loan cosigner comes in, someone who agrees to pay off your loans if an emergency leaves you unable to do so. This can mean both approval and a lower interest rate. However, asking someone to take on the risk on your behalf can be difficult. You can review a guide that explains more about what to consider before you ask someone to be your student loan cosigner.
Consider Your Options
You may change your goals and plans in the years ahead but go ahead and give yourself something to work toward now. At what age do you want to achieve financial freedom? What do you want to do with it? Your answer might be to run for political office, start a business, launch a foundation, travel the world, or live however you choose. How much money will be enough to cover the costs of that lifestyle? Now you have a number to aim for.
Cultivate Frugal Habits
People don’t find their way to financial freedom by throwing money around. You can start cultivating good habits with your money, including tracking your spending and following a budget. The idea isn’t to live miserably until you have enough money to do what you like but to be intentional in your spending and to know where your money is going. These are valuable skills. Once you’re earning a regular salary, you may want to put as much as half of it away toward your future.
Start to Learn About Investing
This is one way you’ll achieve financial independence, and you don’t have to wait until you have a lot of money to start. If you have $100 or even $50, you can open an online brokerage account. If you don’t have any spare cash, you can start reading about investing and use a stock market simulator to learn more without spending anything.
Mark is the founder of Financial Pilgrimage, a blog dedicated to helping young families pay down debt and live financially free. Mark has a Bachelor’s degree in financial management and a Master’s degree in economics and finance. He is a husband of one and father of two and calls St. Louis, MO, home. He also loves playing in old man baseball leagues, working out, and being anywhere near the water. Mark has been featured in Yahoo! Finance, NerdWallet, and the Plutus Awards Showcase.