By Vishweshwar HS, www.showmytrade.com
Financial freedom means having enough cash, savings, and investments to afford the aspiring lifestyle for both ourselves and our families. Financial freedom is the ability to sustain the same lifestyle that you had before in the eventualities, like losing your job or before your business failed. Financial freedom would mean not having to sacrifice and lead a compromised life but being able to live in happiness and with peace of mind.
Not many of us will not reach the goal of financial freedom. Some of us are struggling with increasing debt, financial emergencies, unplanned expenditure. It happens to everyone, but can follow good financial habits can put you on the right path.
The statement “I want to be super-rich,” is not financial planning! It is only dreaming. Instead, I want to have two crores in the next 15 years, for which I save and invest particular money each month/year at a specific rate of interest. Write down your financial goals, how much you want bank balance, what the lifestyle entails, and at what age the goals need to achieve. There is a higher chance of achieving your goal if it is a more specific goal rather than a wish.
Always preparing a monthly budget is a way to all bills paid, and savings are on track. Stick to your budget. Following the monthly routine that reinforces your goals and bolsters resolve against the temptation to spendthrift!
Credit cards and high-interest consumer loans are toxic to wealth-creation. Pay off such high-interest cards' full balance each month. On the other hand, mortgages and related loans typically have much lower interest rates, making them less of an emergency to pay off.
The best way to save your earnings is to automate your savings. A portion of the money moves to one saving account or an emergency fund as you are left with less money to spend. Pay your share of matching funds with an employer’s retirement plan (as it acts as an emergency fund). No doubt, there is a challenge when income is low, high debt, and other commitments. But, it is possible with discipline and careful planning.
The best method to grow your money is through investing. The magic of compound interest will help your money grow exponentially over time. Still, it would be best if you had a lot of time to achieve meaningful growth. One of the easy ways to start investing is in a Systematic Investment Plan (SIP) as low as a minimum Rs 500/- per month.
Apart from saving, find another part-time job. Identify your hobby, which can create additional sources of income. There may include creative assignments; you can do it online to generate extra income. It could be writing, coding, teaching, artworks, design works, etc.
Invest yourself in learning the stock market from the Professional Stock Market Trainer. An understanding of the stock market instrument, risk, and reward associated with the products, different styles of trading based on trading aptitude, duration of trade, ability to take the risk, etc. It takes time to develop the trading skill. Learn and practice with small capital and gradually increase your trading size. It is also essential to know the tax implication, deduction, etc. for optimizing your returns. Over time, you will become a well-oiled trader or investor.
To acquire more wealth in the long-term, learning a frugal lifestyle (living life to the fullest with less) is very helpful in creating more savings. Undoubtedly it is a challenging one. Developing a mindset will go in a long way to building wealth.
After acquiring decent savings and other tangible assets, it is advisable to get a Financial Advisor. A financial advisor helps in educating various products and options to make the right decisions to fulfill your financial goals.
Health is a significant factor, as it helps to earn you a more extended period and can also enjoy retirement benefits. Healthy habits of eating, exercise, and relaxing the mind is the purpose of wealth creation in the first place!
Financial freedom means having enough cash, savings, and investments to afford the aspiring lifestyle. It is essential to write it down, budgeting, investing, earning extra income, investing in stock market education to achieve financial freedom.
It is challenging, but worth it, full fill all our dreams come to real!
Related Article: How to Invest or Trade in the Stock Market?
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