5 main things to do now to achieve financial freedom

Financial freedom implies having enough residual income to live the life you desire without worrying about how you'll pay your bills or deal with an unexpected expense. But how do you get there? Let's find out

Deepika Chelani, MintGenie Team
First Published26 Jun 2022, 11:20 AM IST
Financial freedom implies having enough residual income to cover your expenses.
Financial freedom implies having enough residual income to cover your expenses.(Pixabay)

Some people believe that financial freedom is a far-off fantasy. Indeed, financial independence is a goal that many people strive for in their lives. Although financial freedom may seem impossible, it's actually quite achievable.

As long as you adhere to strict financial discipline and make investments that align with your long-term goals, you can attain your goals. How to obtain financial independence in India with the assistance of some easy tips before we get started, let's establish what we hope to accomplish.

What is financial freedom?

Affluence is the ability to enjoy life without having to worry about money. If you have enough savings, investments, and liquid cash to deal with practically any crisis that life throws at you, you can attain financial independence and become financially independent.

Additionally, it means that the borrower is free of debt, a part of financial education that is often disregarded. Let us now look at some ways to achieve financial freedom

READ MORE: Started investing in your 40? Be aware of these 5 points for your financial planning

Set goals in the present

There is a significant difference between the demands of each individual and their ambitions. Create 3 life goals and 3 general goals that you require money for, no matter where you are financially. You'll discover that saving and investing are connected with your own ambitions. In other words, don't stress if you've yet to start! Start investing for the future now, before it's too late.

Spend according to a budget and live better

Setting goals is the first step towards achieving financial freedom. You're more likely to succeed if you stick to a realistic budget. Since most people find it difficult to stay on a budget owing to exigencies, cravings, or lack of discipline, this is a worthy aim in itself.

Prepare a budget based on your monthly income. Three categories were created - necessities, savings and wants. Assign money from your salary in accordance with your preferences. The 50/30/20 rule is commonly used. It means to spend 50% of your income on necessities, 30% on desires and 20% on savings and investment.

Make investing a part of your life

In the end, saving from your salary only secures the preservation of your assets. A percentage of your savings must be invested in long-term investments, though, if you want a secure financial future in the long run.

For long-term wealth growth, investors favour equity-based securities. But apples and oranges cannot be compared. Investments should be made in accordance with the individual's goals and needs.

Automate your finances

The benefits of automating your investment are numerous. Transferring the money to your savings or investments isn't a problem. In addition, it keeps you on track and disciplined.

On the 1st of the month, many SIP investments are withdrawn from your salary. Consequently, you'll want to set aside a portion of the money from the previous month so that it can be deducted on the 1st automatically.

Take advantage of a wealth coach

Money matters can be complicated and time-consuming. But if you want to achieve financial independence, it's necessary to understand the nuances of investing.

In addition, there are financial advisors with years of experience who can offer investments based on your investment goals and risk tolerance as well as your age and timeline. In this way, you can save time and earn more money.

It takes time to achieve financial independence. Investing in long-term choices is the greatest approach to do it. It's not easy, but it's also not impossible to achieve financial freedom. Investing requires a high level of diligence and consistency.

 

Financial planning for geopolitical crisis. 
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:26 Jun 2022, 11:20 AM IST
HomeMoneyPersonal Finance5 main things to do now to achieve financial freedom

Most Active Stocks

Indian Oil Corporation

166.90
03:58 PM | 12 JUL 2024
-7.6 (-4.36%)

Tata Steel

168.70
03:58 PM | 12 JUL 2024
-0.3 (-0.18%)

Bharat Electronics

333.30
03:59 PM | 12 JUL 2024
-2.25 (-0.67%)

Wipro

560.05
03:56 PM | 12 JUL 2024
25.7 (4.81%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

KPIT Technologies

1,864.00
03:57 PM | 12 JUL 2024
154.25 (9.02%)

Inox Wind

171.90
03:59 PM | 12 JUL 2024
13.85 (8.76%)

Zensar Technologies

768.20
03:29 PM | 12 JUL 2024
50.45 (7.03%)

Coforge

5,950.05
03:29 PM | 12 JUL 2024
386.65 (6.95%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,263.00176.00
    Chennai
    74,699.00757.00
    Delhi
    74,989.00975.00
    Kolkata
    74,190.00-187.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.10
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts