Money is the basic necessity in life that sustains the whole world and billions of people in it. Money fulfils everyone’s needs and wants and who doesn’t want it? Being financially independent is a dream of almost everyone in this world. In this case, financial literacy plays a key role.
However, becoming independent is usually perceived as the goal of every person nowadays. Since time has changed job opportunities have also increased and so does the demand. Amongst all these, it is considered the most important thing for young adults to get independent as soon as they can in life.
What is Financial Independence?
Financial independence means being capable of sustaining ourselves without relying on anyone else. The ability to support oneself, and manage- expenses, bills, and investments are the core values of being financially stable.
For young adults achieving that independence is considered a huge milestone, especially in this fast-paced and modern world where aspirations are so necessary in cutthroat competition.
The Role of Financial Independence in Mental Health
1) Financial Security and Reduced Stress
One of the most obvious perks of being financially independent is the automatic removal of stress. It eliminates financial stress and people get economic stability in all aspects of life. The majority of the problems of grown-up adults revolve around money. Working to meet ends, paying bills, paying rent, groceries, etc. is an everyday life struggle for most people.
Acquiring a stable job eliminates this worry in a person, especially in young adults and they find solace in this newfound comfort and financial security in life. Reduced stress levels and happiness lead to improvement in overall well-being.
2) Increased Self-Esteem and Confidence:
Who doesn’t want to be confident in life? Getting financial independence in life provides empowerment to us. It boosts confidence in us and develops self-esteem as well. The taste of success in life is assured in the form of accomplishments. It gives a sense of settlement and contentment in life that contributes to overall mental well-being.
3) Greater Autonomy and Freedom:
Financial stability in life brings about feelings of freedom and abundance in a person. People who have scarcity due to limited resources can now have new opportunities. This newfound freedom of choice provided an abundance of mindset and an open view of previously unexplored things. It can help them pursue their passion for everything from traveling to indulging in hobbies without constraints.
4) Reduced Risk of Mental Health Disorders:
Life can seem meaningless without aim and goals to achieve. More than that, the instability and uncertainty in life can affect us more deeply. It has been shown in the research that being financially unstable in life is related to a higher risk of mental health disorders.
The instability in life can disrupt the overall mental well-being of a person, and prolonged stress can lead to depression and anxiety. Achieving financial stability in life can reduce the risks of stress-related problems in life hence improving mental health.
Tips for Achieving Financial Independence
1. Set Clear Financial Goals:
In life, planning is necessary at every step. One should have a clear-cut goal in mind and aim for that goal. Having a clear picture will allow us to save for future emergencies and needs.
2. Invest in Education and Skills:
Investing in different businesses and marketing strategies has become so common nowadays, and so has improving one’s skills, thanks to online mediums om can gain an infinite amount of knowledge to boost one’s skills in life.
3. Budget wisely
Maintaining our budget and expenses is a wise choice to plan as soon as we can be financially independent. Going with the flow as soon as we get money is obvious but careful planning ensures our expenses are covered.
4. Build an Emergency Fund:
Nowadays it has been a common practice to invest in emergency funds. For every aspect of life, there are lists of insurance plan that exists to assist us in need and case of emergency. Child policies, health insurance plans, etc. save us from preparing for uncertain future events.
5. Seek Professional Advice:
For people with newfound jobs or who have recently become financially independent, managing their income can be a bit of a challenging task. Since with newfound money, we are unsure how to save and invest. It is always better to opt to seek financial guidance from experts on how to manage our income.
In our whole life, starting from adulthood, we have come across various external factors that shape our life experiences. Factors such as upbringing, peers, friends, teachers, media, socioeconomic factors, and cultural values. All these factors impact our lives greatly, however out of all of them, family expectations can be the biggest influence and both challenges of your life.
It is quite obvious and natural to care about family and what they think of us, being financially stable is one aspect every family expects from their child. Promoting financial literacy among young adults in a healthy manner prepares them for challenges in life. By navigating through the phase of gaining financial stability a person can help them and their families to lead a better and happy life.