How Financial Freedom Can Be Achieved ?

Financial Freedom

Most of the people in this world wants to achieve financial freedom or we may call financial independence, but first it’s important to know what does this Financial Freedom means.

According to me

"Having enough Savings, Investments or Assets to live and provide desired life style for self and for family and that to without being employed is a financial freedom".

To achieve financial freedom financial planning is the basic entity that one should follow
Financial planning itself is a big topic though i will explain you some important key factors in this article

First Factor is AGE

Age is very important factor during financial planning because this is the key that will allow you to achieve and enjoy the life with full prosperity.
One would ask AGE? How does it affect financial planning? Ok let me explain with an example

Consider two persons Ram (Age -25) and Shyam (Age – 50). 
Ram is young guy (unmarried) completed his graduation from reputed university and got a good job in private sector at 25 years of age. Now, as he is aware of his financial goals that needs to be achieved till the age of 60 years (till retirement), he has plenty of time and at present his liabilities towards his family are zero, he can opt good long term investment plans like Mutual funds(ELSS, SIP, Balanced fund SIP etc..), PPF, PF, Post office deposits, LIC etc. And achieve his needs comfortably.

Shyam was well educated guy of course married plus two childern and who is handling good position in private sector. He was living his live with full of joy but one day at the age of 50 he thought, what after my retirement? Till now I didn’t do any retirement planning and I didn’t save enough to live desired life style after my retirement. At this age he thought of saving and investing but with few years left for his retirement many of the investment plans doesn’t suit his requirement (although there are options of investing in this age also but will not provide returns as required). At this time he is helpless with lots of liabilities like children education, home loans, medical expenses etc.
Hence start saving/investing at the early age to full fill your dreams with comfort

Second Factor is Where to Invest? 

There are plenty of options in India where we can invest and see our money grow. But again deciding investment portfolio wisely is a difficult process.
First plan how much you want to save and till what time your savings should grow and give you a desired amount to reach your goal.

According to me for a middle and upper middle class family who do not want to take much risk during investing must have following portfolio in India.
  1. PF (As provided by the company and for state govt. employees its NPS and if you want you can increase your contribution in it and it is backed by Govt of India 100% safe)
  2. PPF (One can invest 1.5 lac/year till 15 years and can be extended it is backed by Govt of India 100% safe)
  3. Mutual Fund SIP’s (Have to consult a financial planner before investing because it is associated with market risk and suits for long term investors who are ready to take moderate risk)
  4. Post office Recurring deposits (For short term goal)
  5. Sukanya samriddhi yojana offered by post office for girl child
  6. Post office FD/ SBI Fixed deposit

Beginner in investing can begin his investment in above mentioned portfolio    

So, Start investing today and be rich to attain Financial Freedom

Comments

  1. Nice article for the one's who are new to the investments and want to understand in simplified manner. Good article Ashish, keep it up.

    ReplyDelete
  2. Good one👍 very simple to understand

    ReplyDelete
  3. Nicely explained ,would like to see an article on how to manage the percentage investment in these different tools.

    ReplyDelete
  4. This comment has been removed by the author.

    ReplyDelete
  5. The way of explaining everything in simple language is positive point in your articles... waiting for next one😊

    ReplyDelete
  6. This most important financial calculated risk taking abilities,
    Very useful & beautiful Article.

    ReplyDelete

Post a Comment

Popular posts from this blog

Post Office Investments for Small and Safe Investors In India

What is Investment ?

Which is better Investment plan PPF or VPF?

Best Ways To Save Money

Pradhan Mantri Vaya Vandana Yojana

Public Provident Fund

LIC Jeevan Shanti - Shanti For Life Time