The path to financial freedom

As we start a new year, many of us set goals to improve our financial health and steer towards the end goal of financial freedom. But what does financial freedom really mean, and more importantly, how can it be achieved? Here, we talk to Apt Director Andrew Dunbar, who explains financial freedom is not just a dream but an attainable reality if approached with solid strategies and clear goals.

What is financial freedom?

“Financial freedom is about building up passive income streams that you can live off without relying on your work income,” Andrew says. “Essentially, financial freedom is about creating the choice to work because you want to, not because you have to, allowing you to pursue your passions over a pay cheque,” he adds.

So where should you focus in 2025?

“Achieving financial freedom is a structured journey, but everyone will come into it in a different position. Regardless, there are some key areas that you can focus on and below is an overview list to help you get started.” While Andrew says it might not be possible to achieve all of these in 2025, it’s essential to pick a few to focus on, set some clear goals and write them down.

“All the research shows that committing goals to paper is a step towards achieving them. Put your written goals somewhere you’ll see them regularly – the front door, the fridge, at your desk, and move them once you stop noticing them.”

Set your course

Begin by defining what financial freedom means to you. Is it retiring early? Having enough to fund your children’s education without stress? Being debt-free? “It starts with working out your values and your goals,” he explains. “This clarity will help you set achievable and meaningful targets.”

Create a budget

The critical first step to financial freedom is budgeting. Understanding where your money goes each month is essential. “A budget acts as a roadmap, guiding your spending in alignment with your long-term financial goals,” Andrew says. He adds that it should be a detailed list of your incomings and outgoings. “If you don’t know where your money is going at a granular level, any other step you take will not be entirely effective.”

Build a safety net

Pay down debt “Paying down debt should be a key focus,” emphasises Andrew. “High-interest debt, like credit card debt, can eat away at your ability to save and invest. Tackling this early in your financial journey is critical.”

Invest wisely

Passive income, a cornerstone of financial freedom, can often come from investments. “Invest, invest, invest,” Andrew advises. “Investing allows your money to grow over time, working for you even when you are not working, but it’s important to go into it with a well-defined, long-term strategy based on solid principles, like Apt’s Investment Philosophy,” he adds.

Planning for retirement

Including superannuation and other retirement plans in your financial strategy is crucial.

“The sooner you start, the better compounding works in your favour, allowing more growth over time,” Andrew says. “If you have young adult children and/or grandchildren, talking to them about the importance of managing superannuation from an early age can help to set them up for success.”

He adds that it is important to have a plan in place to weather financial storms. “If you haven’t structured your super to withstand downturns, talk to your adviser asap. Protecting your super is critical to achieving your retirement dreams.”

Work with an adviser

“Having a financial adviser helps you take advantage of all the best investment strategies, the tax rules, etc. while sticking to the plan to help you achieve your best life, today and tomorrow,” says Dunbar.

It’s about choice

Financial freedom ultimately offers the greatest luxury of all – choice. “Start today, because every step taken is one closer to a future where your financial choices are yours to command, not dictated by necessity,” Andrew says. Andrew sums it up with a quote from Warren Buffett: “If you don’t find a way to make money while you sleep, then you’ll work until you die.”

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.