Mistakes That Can Hinder Your Path to Financial Freedom

Starting early will give you the advantage of time when it comes to financial freedom.

Image by the author via Canva

One of my regrets is that I didn’t start saving for my retirement earlier in life. I kept putting it aside because there were other expenses, and savings weren’t a priority.

Over the years, I’ve learned that you first save and then pay the bills. I’ve gotten better at saving, but I know it was a mistake I can’t undo.

The achievement of financial independence is rare. It’s unfortunate because, if you start early in life, it’s not that difficult. Likely, you don’t want to be among those who have worked for more than 40 years but can still not retire due to a lack of savings.

No one wants to work when they are older. You would prefer to do other things. You can live any way you want when you are financially independent.

Steer clear of these roadblocks to financial independence:

1. Delaying Savings and Investing for Too Long. When it comes to investing, time can be your ally or enemy. It’s remarkable how little money you must save monthly to reach retirement age when you start early.

But if you wait too long, you’ll be surprised at how much you must save monthly to maintain the same savings.

You can try it out by using one of the savings calculators available online. Experiment with the number of years and the contribution amounts.

2. No Clear Financial Objectives. Without financial objectives, you’re just aimlessly floating. Setting goals gives you a framework for selecting your actions and making other crucial choices.

Now is the perfect moment to set financial goals if you don’t already have some.

3. Not Having a Contingency Fund. Although not glamorous, an emergency fund can significantly impact your financial freedom. Having at least three to six months' worth of expenses saved is a good idea.