Ever looked at people who managed to retire early and wondered what they did differently, something you haven’t done yet?

For many of us, early retirement can feel out of reach, something reserved for the wealthy or the lucky few. But in reality, it isn’t about earning a huge pay cheque. It’s about making small, consistent choices that gradually build your retirement savings and pave the way towards financial freedom.

Here are five achievable financial habits commonly practised by those who’ve successfully achieved financial freedom, and how you can start building them today.

They pay themselves first

Most people save whatever’s left after spending, but financially savvy individuals do the opposite. They save first, spend later.

Imagine receiving a monthly salary of RM4,000. As soon as your salary comes in, transfer RM400 (that’s 10%) straight into your savings or investment account. The remaining RM3,600 can go towards your bills, food, and other necessities. The key is that the RM400 is already quietly working for your future.

Try this: Save a portion of your salary the moment you receive it. When your salary increases, raise your savings percentage too. For example, from 10% to 11%. This small step can make a big difference to your financial future.

Read also: Pay-Yourself-First Budgeting: What You Need To Know

They live below their means

Living below your means doesn’t mean being kedekut (stingy), it means being intentional with your money. Instead of upgrading your car or spending on things you don’t really need, focus on what truly matters, which is building financial freedom for your future.

Try this: Track your spending to see where your money really goes. You might find subscriptions still active without you realising it. With a few small cutbacks, you can free up extra funds to save or invest each month.

They manage debt strategically

Not all debt is bad. Financially savvy people know how to tell the difference between good debt and bad debt.

Good debt helps you build assets or generate income (like buying property or financing education). Bad debt can undermine your future financial stability. Examples include credit card debt, impulsive loans, or financial traps like “buy now, pay later” schemes.

Try this:

Remember, debt can be a useful tool or a costly trap, depending on how you manage it. So, if you’re currently in debt, find a way to pay it off. Think about how to avoid debt in the future and practise spending within your means.

Read also: How to Achieve Financial Independence in Malaysia

They keep learning about money

Financially successful people are always curious. They never stop learning and are constantly seeking ways to grow and protect their wealth. They read, ask questions, and learn from the experiences of others. They understand that financial literacy is a lifelong journey, not a one-time lesson.

Try this: Listen to podcasts, read personal finance blogs, or explore financial literacy resources from the EPF. Learning how Malaysians manage their finances can open your eyes to smarter strategies.

The more you learn, the more confident you’ll become in making decisions about your money.

They surround themselves with like-minded people

You’ve probably heard the saying, “The people around you shape who you become”. It’s true, your circle can influence your habits, attitude, and life goals, including how you manage your finances.

When you surround yourself with individuals who talk about ideas, opportunities, and growth, you’ll naturally feel motivated to improve yourself. And when you’re among those who value good habits like saving or investing, you’ll likely be inspired to do the same.

Try this: Connect with friends who are also working towards financial freedom. Share tips, discuss goals, and celebrate achievements together. The journey towards financial well-being becomes easier and far more enjoyable when you grow alongside others.

Conclusion

At the end of the day, being rich isn’t just about having a high income, it’s about having enough.

Enough savings to feel secure. Enough freedom to do the things you love. Enough peace of mind to live life on your own terms. By building smart financial habits today, you’re not just saving for early retirement, you’re creating freedom for yourself, little by little.

Disclaimer: The information in this article is provided for informational and educational purposes only. The content reflects the author’s opinions based on publicly available research and information.