Steps to Achieve Financial Freedom
Do you wish to get all or few of these:
- New Car
- Big House
- Early Retirement
- Quality life for your children
- Freedom from loan
Like we all love freedom we also need financial freedom for our better future. So how to become financially secured and achieve freedom? Does it require only investing money or even more? Let’s check out best ways to achieve financial freedom:
Avoid Changing Portfolio
To get freedom from changing portfolio frequently, you should select funds very carefully. Limit number of funds to 5 in your portfolio and never keep fund of only one category and always pay attention to correct asset allocation. For every financial goal, strategy should be different and always make an habit of periodically reviewing your portfolio.
For this it is important to prepare household budget and avoid unwanted expenses. These days you can get great discounts both online and in-store. So always take benefit from it. You can save money on medicines, healthcare costs etc.
For tax saving, you should never buy insurance and most importantly never wait for the financial year to end while planning for taxes instead you should plan it at the start of the financial year. Never fall prey to marketing gimmicks and invest in non-profitable tax saving instruments. Include tax planning in your investment plan and keep monitoring the same frequently.
To get freedom from loan, always keep aside emergency fund and plan your savings in such a way that you have sufficient funds that will last for 6 months. Give primary importance on paying for the car, home, personal & other loans. You can withdraw money from the low return investment products. And never take loan for small things.
If you are planning to retire before time then start saving from today itself. Start investments in equity mutual funds at an young age. With increased age and income, you can invest more money and at the same time make changes in your portfolio keeping inflation in mind.
Never worry for retirement
While in job, always keep fund for retirement separate and start investment from young age itself. Invest in equity mutual fund via SIP. Also purchase sufficient health and life insurance at an young age so that premium would be less. Your portfolio should include more of equity than debt.
Save money for children’s future
Re-plan your investments once child is born. Regularly keep some funds separate for your kids. While saving for their education, marriage etc. always keep inflation in mind. Make sure not to use money which you are keeping aside for your child.
Uncertainty looms over everyone be it salaried people, businessman or others. So keeping sufficient funds during contingencies has become utmost important. Emergency fund should be kept for small house repairs such as painting, medical expenses etc. Not considering for such unforeseen expenses can kill your monthly budget.