76 years of Indian Independence- A foray towards Freedom- Economic/Financial Freedom.

 

"Financial freedom is not limited to wealth accumulation it is much more than it. It means having the right amount of money when you need it and control over it".

As India celebrated 76 years of Independence, it is also a good time to reflect on our own financial freedom.

What does it really mean to be financially free? And how can you achieve it? Financial independence is the ability to live the life you want without worrying about money. It means having enough money to cover your essential expenses as well as your wants and desires.

Financial independence goes beyond wealth accumulation. It is having the right amount of money when you need it. If a lot of money is tied up in illiquid assets such as real estate or unsaleable stocks, you are not financially free.

Financial freedom is also about having control over your money. It means not having to worry about unexpected expenses or job loss. It means being able to make life choices without being constrained by financial limitations.

Map your financial independence: A ten-point note: -

Achieving financial freedom takes time, effort and planning, however it is possible for anyone willing to put in the work. Here are tips to help you get started:

Prepare for uncertainties( Foundation): Before anything else, prioritise life (Term Life insurance) and medical insurance and build an adequate emergency fund. Securing yourself against uncertainties the first step towards financial independence. This is the foundation towards financial independence.

Create a budget and align: This is the initial step to take control of your money. Track your income and expenses to see where your money is going. Once you know this, you can start to make changes to save more. Understanding your spending habits empowers you to save more effectively. Practice controlling your cash flow for your advantage. You will feel powerful.

Live below your means: This means spending less money than you earn. It is easier said than done, but it is critical and necessary if you want financial freedom.

Pay off debt : Debt is a larger hinderance to financial freedom. The sooner you pay off your debt, the more money you will have to save and invest. While a loan might be necessary for homeownership, other borrowings can burden your financial freedom. Clear them early to relieve unnecessary financial strain. Even borrowing for a home should be rational decision. 

Set financial goals: What do you want to achieve with your money? Do you want to retire? Buy a home? Send your kids to universities? Setting specific finanicial goals will help you stay motivated on achieving it. Set the basic financial goals with respect to how you would want to lead your life.

Invest at present for the future: Time is the most valuable asset when it comes to investing. Begin investing as early as possible. As the saying goes, "The best time to plant a tree was 20 years ago, the next best is now!" It includes saving for retirement, emergencies and other critical goals. Save a certain amount of money each month and gradually increase your savings as you get more comfortable. "Practice Delayed Gratification".

Invest prudently: This will help your money grow over time. There are many investment options, so it is important to do your research and choose the right ones. Align your investments with your risk tolerance ie willingness to take risk and capacity to take risk. Avoid irrational & impulsive decisions driven by market voltality. Note that , the markets are not wrong – it's our actions to them that matter.

Be patient: It takes time to achieve financial freedom and it does not occur overnight. Just keep working towards your goals and you will eventually reach them. Haste makes Waste.

Monitor, Adjust and Adapt: A well-thought-out plan is only as good as its execution. Monitor your progress regularly and make adjustments as needed and adapt. Stay disciplined and committed to your financial objectives without losing sight.

Take an expert/professional help if required: If navigating these financial steps seems daunting, hence seek guidance from an Financial advisor. Much like a doctor, a good financial planner can diagnose your financial health, prescribe solutions, and guide you towards financial independence. Seeking professional help not only streamlines your financial journey but also gives you peace of mind knowing that an expert is looking out for your best interests.

As we enter the 77th year of Independence and our tricolour flies high, let's raise our financial aspirations. Let us march towards a future where financial freedom reigns, empowering us to make choices that shape a life of independence and fulfilment. Just as our forefathers fought for the nation's freedom, let us fight for financial freedom and liberation from financial distress.  Thanks for reading .JAI HIND. 💪

Get Financially Empowered!

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This blog “Finmission’s Class" is an effort to educate and spread the word of financial knowledge and awareness whilst empowering the community with a touch of practicality on personal finance.
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