Achieving Financial Freedom: A Teen's Journey to Independence
Written on
Chapter 1: Understanding Financial Control
Gaining mastery over your finances translates to gaining mastery over your life. Practicing mindful spending is a powerful skill in a society dominated by consumerism and material desires. The ability to take a break from work for six months is a privilege not everyone can enjoy, but achieving this doesn’t require a seven-figure income.
I achieved financial independence as a teen, and you can too.
When I first hit the "buy" button on a stock, a surge of excitement coursed through me. It felt like the first step toward claiming my financial future. At just 18, I adopted a mindset akin to that of a seasoned adult: avoiding debt, minimizing living costs, boosting income, and investing the surplus while planning for retirement.
There are two fundamental skills in the realm of finance:
- Earning money
- Preserving and growing that wealth
Interestingly, I began my journey by focusing on the latter—maintaining wealth—rather than initially concentrating on earning it. Nonetheless, cultivating good habits before generating income is a wise approach. It wasn't until recently, when I launched my Medium blog and committed to regular writing, that I seriously began the process of earning money.
For me, it has never merely been about accumulating wealth; it has always centered on achieving financial independence.
How to Preserve and Grow Your Wealth
Maintaining wealth is straightforward once you develop the right habits:
- Avoid debt
- Build an emergency fund
- Cut down on living expenses and invest the surplus (consider the 20/30/50 rule)
If you can master these three principles—regardless of your income level—you qualify as "financially independent." While you may not have the capacity to buy everything you desire just yet, you will enjoy the freedom to resign from your job, travel, and spend your money wisely.
How to Generate Income
Generating income is significantly more complex and nuanced than simply preserving wealth. To earn money, you must offer value, whether to an employer or customers. If your primary aim in life is to accumulate wealth, traditional college education may not be the best route anymore. Today, the most effective ways to earn money are online.
This includes avenues such as writing on Medium, creating courses, producing YouTube videos, or freelancing. Making money online is often more advantageous than incurring debt for a degree. That said, I still plan to attend university to study pharmaceutical science, as it genuinely fascinates me.
The journey will require time, effort, and resilience, but with enough discipline and motivation, anyone can find success online.
To support my journey, here are three ways you can help:
- Comment and share this story with anyone who might benefit.
- Follow me and subscribe for more insights.
- Check out my Substack for additional content.
More on Personal Finance:
Chapter 2: Valuable Insights from YouTube
To further explore financial independence, check out these insightful videos:
The first video, "12 Steps To Financial Independence," offers a comprehensive guide on achieving financial freedom through actionable steps.
The second video, "Step-by-Step Guide to Achieve $2.5M Financial Independence," provides a detailed breakdown of strategies to reach significant financial goals.