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Journey to Financial Freedom: Best Practice for the Expats

What are the goals of your financial planning?

Discussing financial goals is crucial for everyone, including you, an expat residing in Indonesia.

How do you become financially independent, and more importantly, what exactly is the definition of financial freedom?

Let's find out!

Being Financially Independent

Expatriates often discover an opportunity to save more than their pre-abroad lifestyle, owing to increased income, lower living expenses, and potential tax advantages. Leveraging these advantages becomes imperative for wealth growth and accumulation.

However, in Indonesia's bustling and culturally rich landscape, expats can grapple with unfamiliar financial systems and dynamics.

Thus, it would help if you had strategic planning and a proactive mindset; achieving financial freedom as an expat is within reach.  

Save and Invest Your Asset 

As an expatriate managing finances, you've likely encountered the following advice:

  • Gain insight into the financial landscape of your host country, covering currency exchange rates, taxation regulations, and cost of living.

  • Create a budget tailored to your income, expenses, and financial objectives.

  • Build an emergency fund to cushion unexpected financial blows.

  • Consider consulting professional financial advisors to optimize your financial strategies.

Keep these pieces of advice in mind, for they can pave the way for financial stability.

The next step, if your goal is to attain financial freedom and build substantial wealth, incorporating saving and investing into your financial strategy is essential.

To ensure that your savings and investment endeavors effectively contribute to your journey toward financial freedom, you must wisely discern which funds are best for savings and suitable for investment assets.

The golden rule is to save for meeting your sudden or short-term needs and invest for your future. Therefore, it's essential to categorize your financial goals into short-term and long-term objectives.

Organize Assets According to Their Function and Purpose

Here are some advice to take note of:

  • Saving Funds

Savings can be allocated for various purposes, such as purchasing gadgets, vehicles, vacations, weddings, and other financial goals achievable within five years.

For emergency funds, it's crucial to keep them separate. Building an emergency fund is a fundamental step toward financial stability, aiming to cover at least six months' worth of living expenses for unforeseen circumstances.

Consider options like term savings, deposits, or mutual funds to grow your savings.

  • Investment Funds

As we anticipate rising costs for various needs over the next five to ten years, it's essential to start preparing funds for significant expenses such as children's education, property purchases, and retirement.

Consider leveraging investment assets that preserve currency value and hedge against inflation, such as gold, stocks, or crypto. By strategically allocating your resources to these assets, you can work towards achieving your long-term financial goals, whether they span five to ten years or extend even further into the future.

Let’s Talk About Crypto

Here are several reasons why crypto is well-suited for long-term investment:

  1. Despite occasional volatility, blockchain technology and crypto boast substantial long-term growth potential.

  1. With the increasing acceptance and adoption of blockchain technology, there's optimism that crypto will play a pivotal role in the global financial landscape down the line.

  1. Additionally, crypto offers accessibility and unrestricted transaction capabilities, providing potential inflation protection. For instance, Bitcoin, with its limited supply, can serve as a hedge against long-term inflation and fiat currency devaluation.

Exciting news! Today, you can kickstart your crypto investment journey with Luno, a UK-based crypto app registered and supervised by BAPPEBTI – Commodity Futures Trading Regulatory Agency. Available in over 40 countries, including Indonesia, Luno allows you to seamlessly buy, store, and access the world of crypto 24/7.

Need assistance? Our customer service team is here to help, offering support in both English and Indonesian.

If you want to start investing crypto in Luno, you can use LEB2024 promo code while registering on Luno to get free Bitcoin worth IDR 100,000.

Luno is registered and supervised by the Commodity Futures Trading Regulatory Agency (Bappebti). Trading and investing in crypto assets is a high-risk activity. Read more on our Terms of Use here:

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