April 12, 2019
Whether you have a huge student loan, a home loan or a business setback, it’s still possible to embrace financial freedom in the future. Celebrating financial freedom is the ultimate dream for most of us. For some, it may include a hefty retirement fund, while for others, it may be a house with no debts. For many, it includes having an emergency fund for those rainy days. No matter what’s your goal, following some crucial financial tips and habits can get you there.
Celebrating financial freedom involves taking complete ownership of your finances. This means, you have a steady cash flow to manage your expenses and live the lifestyle you desire. Plus, you don’t have to worry about paying the bills or any sudden expenses that may arise. Lastly, you don’t have a big burden of loans and EMIs. It’s all about planning for your financial security for the long-term. This can include buying the right insurance policies, opting for health insurance, investing in mutual funds, and much more.
Rather than saying “I’ll reduce my spending” or “I want to change”, think about setting realistic goals. For instance, cutting your spending by 10 or 20% in 2019, paying off your credit card debts in the next six months, etc. By setting achievable goals, you can stay on the right track with your future plans.
Unfortunately, an emergency can strike anytime. You might lose your job, someone in the family may get sick, there might be a natural disaster, and so on. In such cases, having a reserve is important. Start with a goal of saving Rs. 5000 or 10,000 every month, depending on your earning. If not, at least start with saving for an extra electricity bill. Something is better than nothing when it comes to savings!
Don’t ignore your financial education. Today, there are so many schemes, insurance policies and options to save and invest for your financial freedom. Review your finances regularly, speak to some experts and learn how to save money and improve your personal finances.
It’s best to start saving for your retirement from the day you start earning. Sure, you want to enjoy your 20s and live life to the maximum. However, it is the best time to start investing in the right financial products as your risk-taking ability is considerably higher. Plus, you get a lot of tax benefits and can get maximum gains on compound interest too.