Creating financial mileposts at regular intervals will help keep one alert and focused
Wouldn't it be nice to have a life without money worries - a life, where the money is aplenty and even major money hurdles don't disrupt our lives? This is what financial freedom is all about. Money may not buy happiness, but it can surely buy one freedom. Well, to achieve this utopian financial independence, one needs careful planning. Financial freedom in general means having adequate savings, investments, and cash on hand to pay for the lifestyle we want for ourselves and our families without being obsessed by bringing in a certain amount each year.
Today, attaining financial freedom is an aspiration for many people. When one is financially independent, one has options. But, too many of us fall short of reaching that goal. We are laden with ever-increasing debt, financial emergencies, reckless spending, and other issues that foil us from reaching our goals. However, this Independence Day, one can surely start working their way towards financial freedom with these handy tips:
First, set life goals. Lack of a goal makes the desire for financial freedom too vague. The more specific one's goals are, the higher is the probability of realising them. Creating financial mileposts at regular intervals will help keep one alert and focused.
Second, make a budget. Making a monthly budget and sticking to it is the best way to guarantee all bills are paid and savings are on track. It is also a monthly routine that reinforces your goals and boosts resolve against the enticement to overindulge.
Third, start investing immediately. Investing is the best way that one's money can grow exponentially over time. But, time is a major factor to achieve meaningful growth. An online investment account makes it effortless for one to study how to invest, create a neat portfolio, and make weekly or monthly contributions to it automatically.
The next step would be to watch one's credit. One's credit score decides the entire financial history of a person. People with reckless financial habits end up paying more interest creating a long-term impact on their financial well-being. This makes it important to get a credit report at regular interval to make sure there is no incorrect information sullying one's good name.
Another good thing would be to keep learning. One should review all valid changes in the tax laws each year to make sure all alterations and deductions are made the most of. One should try and adjust their investment portfolio in sync with the latest development in the finance sector.
In addition to all above, getting a financial advisor - could be a friend, family, or a professional expert - is highly recommended. A financial advisor can educate, guide and help a person to amass a decent amount of wealth which will get one a step closer to financial freedom.
And last but not least, it is vital to take care of one's health. Ill-health often makes insurance premiums soar. It may also lead to early retirement. This may hamper the saving and investment pool obstructing the road to financial freedom.
Not only are financial freedom and building extraordinary wealth commendable goals, but they are also attainable. However, working one's way towards financial freedom will not happen in a jiffy. But, with each step, one can reduce financial stress and improve the quality of life.
The writer is MD & CEO, Axis
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