We all have routine expenditures such as paying utility bills, groceries, paying rent, or paying children’s school fees. We also need money to buy things that we desire and dream of.
Or, there could be unseen medical emergencies in the family or financial crises in the family, help family and friends.
Then, we have beautiful dreams…such as owning a house owning bigger cars, educating children in premier institutions, traveling and staying in star hotels/resorts, visiting temples, celebrating festivals/marriages with grandeur, visiting family or friends in a faraway place, or outside the country. The list goes on and on
To meet our monetary needs, we might work as either blue-collar workers or white-collar workers, professionals, business owners, farmers, or traders. Some of us might get rental income, pension, and interest from Fixed Deposition returns, etc.
People in a job or profession will earn money in Equated Monthly Installment (EMI) or what is popularly known as salaries. For example, one person can earn Rs. 30,000/month for March, another Rs. 30,000/month for April, and on January two years after joining service, the same person might earn 35,000!!! So all salaried persons fulfill their dreams in EMIs, so to speak.
Business owners earn a lump sum profit in business. After investing in their business, finding a customer for their product or service, fulfilling the order, paying their employees, paying their bank and landlord, and paying the income tax.
Either way, I am sure most of us feel that we are underpaid.
Now let us for a minute, imagine that we are struck with some misfortune –unfortunate things do happen to good people. Let us say I had to quit my job because I could not take office politics anymore, no growth, paid peanuts, migrate to another city, or I was fired from my job.
If I was a Business Owner, I incurred a substantial loss, (cut-throat competition, price drops, increase in the price of raw materials, lack of sales and therefore lack of profit, etc.)
To counter such situations, wouldn’t it be wonderful if you had a Second Source of Income that you could rely on?
Financial freedom is the ability to sustain the same lifestyle that you had before 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.
In order to beat inflation, it is necessary to save and invest in the stock market.