BRITS have revealed what financial freedom is to them, including shopping at a high-end supermarkets and having the mortgage paid off.
A study of 2,000 adults found owning a car outright with no finance is also an indicator you have no worries when it comes to money.
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Not being afraid to check your bank balance is another, as is flying first class as a matter of routine – and being in a position to buy branded products rather own-brand items.
But more than half of adults (53%) don’t think they will ever be financially free.
A spokesman for Barclays, which commissioned the research, said: “Reaching a point where you no longer need to worry about money may seem like nothing but a pipedream but there are steps you can take to help get there.
“Obviously, the earlier in life you can begin saving money, the sooner you’ll reach financial freedom.
“But even for those who realised a bit later in life that they were going to have to take control of their finances, reaching that balance is possible.”
The study also found the average adult who does think they might get to financial freedom at some point, reckons they are still nearly 12 years away from doing so.
Other key signs of financial freedom include being able to treat themselves without worry, not needing to work full-time, and having the cash to make home improvements without needing to save up.
For just under one in 10, however, they’d like nothing more than being able to buy their team’s new football shirt as soon as it comes out.
One in four adults worry they aren’t saving enough every month to reach their financial targets, while 12% don’t know how to manage their cash most effectively.
And on average, Brits reckon they’d need to earn just under £60,000 a year to avoid worrying about money.
Two thirds also feel that for them, financial freedom isn’t about reaching all their financial targets – they can still feel that way by simply feeling in control of their cash day-to-day.
To do this, 21% have made a conscious effort to understand where their money goes each month, according to the study carried out via OnePoll.
The same amount try not to compare their financial situation to anyone else’s, and 19% find having clear financial goals to aim for is helpful.
Barclays’ spokesperson added: “Financial freedom doesn’t have to mean having enough money in the bank to buy whatever you want.
“You can feel financially free and still have certain goals to achieve, such as paying off your mortgage, or even things like car payments.”
“Really, what we found in this survey is that financial freedom is very much a state of mind – something tangible for one person may not work for another.”
How to build your savings
However, there are ways to help build up your savings and be more financially secure.
Before you start paying off your debt, take a step back and figure out how much you owe overall, when you would ideally like to have this paid off by, and how much you can afford to pay back each month.
Setting aside small amounts now and slowly increasing the amount will help kick-start your journey.
Savings challenge like the 52 week one can help build your fund.
With this challenge you can simply put £1 in on week one then increase it by £1 each week, by the final week you’ll be saving £52 which will leave you with an impressive £1,378 by the end of the year.
Tools such as the Barclays Savings Goal tool can help you keep track of your progress.
If you’re saving for any longer term goals – retirement, children’s education or future financial freedom – then it’s worth considering investing.
If you’re unsure where to start, many banks or and investment platforms offer “ready-made funds” that are based on the level of risk you are comfortable with and which they’ll manage on your behalf.
By using monthly disposable income, or extra cash from a pay rise or a bonus, you could reduce your mortgage balance faster, enabling you to make some significant savings in the amount of interest you pay over the long-term.
Write down all things you think you really want to spend money on, then review this against what you currently ‘do’ spend money on over the month.
This should give you some idea of areas where perhaps you can reduce spending as you wouldn’t pay for it today.
Here’s 20 easy money saving tips to make you richer, including no spend months and saving challenges.
And we explain how saving £100 a month in your 20s will give you a pensions pot worth £321,800 to retire on.
We tried 6 savings challenges that saved us hundreds of pounds – here’s how you could too.
One in three say their finances are the LEAST organized part of their life
