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How to Set Financial Freedom Goals?

IndianMoney.com Research Team | Updated On Wednesday, December 04,2019, 05:38 PM

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How to Set Financial Freedom Goals?

 

 

Financial freedom means having savings, investments and even cash on hand to enjoy a great lifestyle. You have the power to give your family what they desire and simultaneously enjoy the freedom to chase your dreams. Now, financial freedom doesn’t come easy. You must control debt, have breathing space for financial emergencies, cut down on spending and look at issues that hinder financial goals.

You develop a skill set and find employment. The next step is trading time for money. Will you blow up all the hard-earned money? No, you must minimize expenses and spend less than you earn. You soon create a pool of savings. Invest these savings responsibly and enjoy a high return on investment. Compounding Returns or return on return is the way to financial freedom.

Managing money is an art, learned 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 a one-year membership to the Millionaire’s Club of IndianMoney.com.

How to Set Financial Freedom Goals?

Get Out of Debt

You can never enjoy financial freedom unless you get out of debt. Many people believe not having loans is financial freedom. Getting out of debt should be a financial freedom goal.

Take a look at reasons to get out of debt. Well, it wastes time, pays others first and debt is used for spending. You will blame others for your problems, focus attention on the past and think in terms of problems.

So how to get out of debt? Spend less than you earn, buy experiences and not things, focus on repaying loans and credit cards and create additional sources of income. Building passive income is an excellent way of getting out of debt. You must first repay any credit card dues or personal loans which have high-interest rates. This is the fastest way of getting out of debt.

Financial Freedom for Happy Retirement

You need a lot of money for a happy retirement. Why not set this as a financial freedom goal? You must invest based on the risk profile. You can choose investments like PPF, FD, NSC or Post Office Saving Schemes if you are a conservative investor. An aggressive investor can invest in stocks or equity mutual funds. Let's understand how investing brings financial freedom. An aggressive investor can invest in mutual funds through SIPs. If you invest just Rs 8,000 for 25 years at an expected return of 12%, you get a corpus of Rs 1.5 Crores. A conservative investor can invest the same amount with an expected return of 8% and get a corpus of Rs 77 Lakhs. Fix investments in SIPs based on when you plan to retire.

Create Multiple Income Streams

The fastest way to enjoy financial freedom is to create multiple sources of income. You can look at rental income as an alternate source of income. If you have a second house or a holiday home, give it on rent and earn additional income. Earn income through blogging, royalty, affiliate marketing, buy high dividend stocks or even sell your own products on the internet.

If you are a college teacher, consider giving tuitions and earning money on the sides. You could also consider writing articles freelance or making chocolates and so on.

Make an Emergency Fund

Well, this is a great way to protect financial freedom goals. Make an emergency fund with at least 3 months of living expenses. Its 6 months of living expenses if you are married. Make sure emergency fund is liquid and this means investing in liquid funds. Avail life and health insurance to protect your savings. Take term life plans which protect your family at low premiums. This is the maximum cover at minimum premiums. If the policyholder dies within the term of the plan, the insurer pays the sum assured also called death benefit. This plan has no survival benefits. Health Insurance is crucial to protect you from emergency hospitalization. Avail health insurance to protect savings and achieve financial freedom goals.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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