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6 Habits To Reach Financial Freedom

IndianMoney.com Research Team | Posted On Saturday, December 07,2019, 03:14 PM

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6 Habits To Reach Financial Freedom

 

 

Financial Freedom means having enough savings, investments and cash to enjoy the good things in life. You have enough income to pay for living expenses for the rest of your life, even if you are not employed, without being dependent on others. You get to retire when you want and follow your passion and dreams.

Financial Freedom must be attained and with the right habits, you can easily get there. Let’s take a look at some of the habits which help you attain financial freedom. Managing money is an art, learnt at an early age. This is why you must attend interactive sessions on wealth generation. Enroll and participate in the Financial Freedom Workshop by C S Sudheer just by leaving a missed call on +91-8655097256. You will also be eligible for one year membership to the Millionaire’s Club of IndianMoney.com.

Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

See Also: 9 Golden Rules For Wealth Management To Generate Best Returns

6 Habits To Reach Financial Freedom

Set clear financial goals

You must set clear financial goals to attain financial freedom. This could be retirement at 45 years. You will have to save and invest to attain financial goals. Assign a time-frame to achieve financial goals. If a financial freedom goal is to buy a house or go on a World tour, set a timeline within which you want to achieve the goal.

Keep an eye on expenses

You can never achieve financial freedom without being disciplined with spending habits. You get an idea on overspending only when you track expenses. This is an under rated exercise, but extremely useful. Always know where your money goes, and never spend on wants over needs. A budget helps attain financial freedom.

Invest Now

Start investing right from the first salary of the first job. This is a great way to retire rich and enjoy financial freedom. Save at least 20% of monthly income and invest based on risk profile. Invest in equity like equity mutual funds or shares if you want higher returns. You must be willing to bear risk in investment. Follow the 100 - age rule, where if you are 30 years, you invest 100-30 = 70% in equities.

Invest in equity mutual funds through systematic investment plans or SIPs. SIP is a way of investing in mutual funds. You invest small amounts regularly say once each day, week or month in a mutual fund scheme of your choice.

If you are a conservative investor, invest in PPF, Fixed Deposits, NSC or Post Office Schemes. You get returns in the range of 7-8% a year. Take a look at tenure before investing. PPF has a lock-in of 15 years and NSC a lock-in of 5 years. So, invest now to attain financial freedom.      

Keep Learning

Well, this is a given to achieve financial freedom. You must keep learning and upgrade yourself to reach financial goals. Make learning a daily goal. If you are in the engineering field, strive to make it to the top of your field. Learning is really easy today with the wide spread use of the internet. You can learn from tutorial videos on YouTube and there are plenty of articles which update you on the latest topics on personal finance. Learning teaches you that wealth is not the result of an act, but the result of habits.

Get rid of credit card dues

Pay your credit card dues in full each month. Don’t fall for the minimum amount due trick where you must pay a certain minimum amount to keep the account regular and avoid late payment fees. Paying minimum amount due means you get away by paying only a portion of the outstanding balance on credit card.

So why is this a bad idea? If you pay only a part of the dues, well they accumulate. You land in the loan trap. So, never pay minimum due on credit card. Pay off debts in time and stay far from the loan trap. For some people financial freedom is not having any debts.

Take care of your health

Well, this is a great habit to achieve financial freedom. If you don’t take care of health, disease will be a constant compassion. You will never be rich if all your money goes to the doctors. Most Indians spend on health out of pocket. Take a health insurance plan to protect you from heavy hospitalization expenses, if you suddenly land in hospital. This could be a path to financial freedom.

See Also: 6 Reasons Why People Fail in Financial Planning! How to Overcome?

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