Financial Freedom – Is It Important?

Hi Moduers,


Jangan sampai besar pasak daripada tiang” – I believe Moduers definitely ever heard about this proverb or even perhaps during your Primary School in your Indonesian language course and your exam was about the meaning of proverbs (sounds familiar? ). Yes, I have been taught to be able to manage my spending: spending should not be bigger than your income (in this case pocket money of course).


If it is that simple during Primary School, as you grow older things get more complicated, right? In University, I was told about this term called financial freedom and that it is important to reach financial freedom in life. But before we discuss further about this, do you know what financial freedom means?


Quoting from one of the articles from Kontan, the term financial freedom is interpreted as “the condition where an individual could fulfil all the needs and live the lifestyle without having to work. The individual obtains money from productive assets that could give regular income.” So from there, I thought of HOW to be able to reach this financial freedom stage especially I am fully aware and realized that cost of living keeps on increasing every year.


So how do you reach financial freedom, Moduers?

Savings? If it’s just for the sake of fulfilling daily expenses, I believe savings only will be enough. However, if only by savings, you will still need to work. If we recall the definition of the term financial freedom, will savings only be enough? Personally, I don’t think it’s enough.


Quoting from Robert Kiyosaki, an investor, businessman, writer and motivator, “The key to financial freedom and great wealth is a person’s ability or skill to convert earned income into passive income and/ or portfolio income”. This means we need to be abe to have passive income/ portfolio income. Now the question is: How? The answer is simple: Start Investing!


You might think “My income is still so low and barely enough for my daily expenses, how can I invest?” Who says! Do you know that investing in mutual funds starts from only Rp 10.000,-. This means Moduers only need to spare Rp 10.000,- to start investing. Yes! Don’t be shocked, investing in mutual fund can start from as low as this amount. So, after receiving your income, it will be better if you start sparing Rp 10.000,- to be invested. Sounds very possible, right?


Now, you might think “Ah, but if investing only Rp 10.000,- what does it mean for a living or even future? How much can I get by saving up only Rp 10.000,-“. Hmm, do you know if for example you start investing Rp 10.000,- daily for 30 years down the road with return assumption of 10% per annum, your total investment return can be equivalent to Rp 690-ish million! Isn’t it awesome!


Perhaps, now another question pops up “But how to buy mutual funds? I don’t have the time”. Solution is easy, Moduers! You can use Moduit application. Through this application, you could easily invest in Mutual Funds using your smartphone anywhere. Your investing journey could be comfortable and of course hassle-free!


So, for Moduers who never invest yet, now is your time to start 😊 For you who have started investing, yeay congrats! You’re on the right path to prepare for financial freedom! Keep it up yaa 😊