Seeking financial freedom? Do these 4 things

You are certainly not alone if you feel like financial freedom seems increasingly out of reach lately.
With the cost of living in Singapore steadily rising, many people are feeling the pinch more than ever. More than 40 per cent of Singaporeans now think that they would never achieve financial freedom, while some 25 per cent have not started planning for retirement. 
Waves of layoffs across several sectors, in multinational giants and homegrown firms alike, have also left people anxious about job security. In my own social circles, those with young children or elderly dependents have been among the hardest hit.
Although core inflation rates are starting to come down, ask any person on the street and they’ll likely tell you that everything has gotten more expensive — the Goods and Services Tax, the cost of dining out (whether it’s at a restaurant or a hawker stall), the utility bills, public transport fares and even basic grocery items such as eggs and rice.
Higher government payouts have helped, but the reality is that inflation is here to stay.
How do we cope with balancing our jobs against the growing demands of day-to-day expenses, while also trying to save for our future goals such as retirement or our children’s education? 
For many of us, it feels like the sense of control we once had over our finances is slowly slipping away. 
The good news is, it doesn’t have to be this way.
There has never been more education and resources available to help us learn how to manage our finances better these days. However, more information can also mean more confusion.   
In my 10 years as a personal finance educator, I’ve had so many people tell me that they tried to start getting their money matters in order, only to get overwhelmed or disillusioned by conflicting advice and opinions online. 
Should you focus on saving more or investing? Put your cash in stocks, or your Central Provident Fund and T-bills? Reduce debt or build your emergency fund first?
Others have followed trending or “hot stock tips” only to end up losing money.
It doesn’t help that the proliferation of social media and finance content online has also given rise to more scams. From phishing to cryptocurrencies, modern scams can appear so convincing that they fool even digital natives, with three in four scam victims under the age of 50. 
How do we know whether the advice we’re getting online is genuine or simply designed to sell us something — or worse, cheat us of our money? 
Despite these challenges, financial freedom is not just a pipe dream.
Growing up in a family where arguments over money often caused irreparable damage made me determined to not repeat the same mistake. I resolved to be intentional about my finances. 
We may not have any say over rising prices, but we can manage our money better to deal with it. 
There are many ways we can make our money work harder for us, from using credit cards wisely to get more rewards on your spending, to using budgeting tools and digital savings pots, or tapping brokerage applications that have gone a long way to democratise investing. 
However, new-age tools aside, what most of us need is a clearer road map to get us on the path to financial freedom. And the first step is to be deliberate about your money habits.
No matter how much you make, everyone needs to learn to budget with a purpose. 
Whether this means making smarter spending decisions or moving your money into a higher-interest bank savings account, you’ll soon be able to stop living pay cheque to pay cheque once you make sure to pay yourself first.
Your budgeting rules may look different from someone else’s, but what is important is to be informed and realistic about your own circumstances.
Beyond cutting back on expenses, increasing your income can be a game changer. Side hustles are becoming increasingly common, with more Singaporeans picking up freelance gigs, starting online businesses or even giving tuition. 
And if there’s one thing the Covid-19 pandemic has taught us, it is to set aside an emergency fund for unexpected financial shocks.
Whether you buffer for three months of your salary or six months of your living expenses, a rainy-day fund ensures that you won’t end up in debt instantly even if your plans are suddenly derailed.
To outpace inflation, learn to invest so that you make your existing funds work for you to build up your wealth for the future. 
For instance, if you’re able to invest S$300 each month at an 8 per cent annual return, you could accumulate S$100,000 in less than 20 years.
From index funds and unit trusts to a balanced portfolio consisting of bonds and stocks, there’s a wide range of investment options available today that you can choose from to help you get such returns on your capital.
Even after getting all this into place, you might still feel overwhelmed. That’s completely normal. Every journey begins with a single step. You don’t have to master everything overnight.
Start small, whether it’s committing to a spending budget, saving a little more each month or making your first investment. Consistency is key — over time, these will start to feel like second nature.
Financial freedom might feel far off, but with the right steps and guidance, it’s not out of reach. 
Dawn Cher, also known as SG Budget Babe, has been running one of Singapore’s most popular blogs on personal finance for the last 10 years.