Little drops of water make the mighty ocean.
This adage holds quite; especially when it comes to financial planning. Small and mindful savings lead to huge income in the future. Although you may be unaware, small savings like Fixed Deposits (FD) can give you total freedom – freedom from the rat race, professional targets and looming deadlines. It will give you financial independence, and liberty to live it up, without having to worry about your future!
What is Financial Independence?
Financial Independence is the ability to meet all your expenses and achieve your desired standard of living without having to depend upon a regular income through employment. The best part of achieving complete financial independence is that you can enjoy the kind of lifestyle you wish for despite quitting your job. Gaining financial independence means generating income using assets and investments that you have accumulated over a period.
You do not need a specific age or amount in your coffers to be financially independent. If you generate enough money to meet yours and your family’s needs from sources other than the primary occupation, you are financially independent.
This Independence Day, promise to gift yourself complete financial independence. Here’s why.
How to Become Financially Independent?
- Plan your Finances
- Save Regularly
- Invest Smartly
Why is Financial Independence Necessary?
You work to earn money that can help you meet your daily financial expenses. However, if you plan and save regularly, eventually invest the funds smartly, you may be able to earn much more than you do through your job. Your investment returns can outgrow your monthly income, making you financially independent – even when you do not have regular income to look forward to.
For instance, Bajaj Finance offers high FD interest rates. Hence, while investing a huge amount in a fixed deposit, you can calculate monthly interest with the help of FD calculator. This will give you an idea about the monthly interest you will be earning and the total amount that you will receive at the end of tenor.
To Retire Early
The earlier you start thinking about being financially independent, the better it is for you. As mentioned earlier, there is no particular age bar to enjoy financial freedom. At 25, if you are happy and satisfied with your income, you are on the right path. Probably, at 30, you may have to earn much more than your peers.
If your income helps you enjoy a good lifestyle and to manage family expenses without any financial crunch, then you are spot on! You may have attained financial independence much earlier than you may have planned. If your source of income, other than your salary, takes care of all your expenses, you can quit your job and plan an early retirement to enjoy life with your family and travel the world!
For a Secured Future
Life is unpredictable; what and whom you have today may be gone tomorrow. Technology is continually replacing humans; you may lose your job due to layoffs or inflation; you may have to spend a fortune treating your family member due to ill health, or you may lose a special someone unexpectedly. There is no certainty in life. Hence, you need to ensure that nothing’s or nobody’s absence affect your financial status. A fixed source of income may only leave you with a hand-to-mouth situation. However, additional income in the form of property rent and interest on fixed deposits or recurring deposits, etc. can help you manage your expenses efficiently.
To Enjoy Personal, Professional and Financial Freedom
Everybody likes personal, professional and financial freedom. However, very few, who plan, save and invest smartly can enjoy their benefits. So, if you start aiming for financial independence at a young age, you shall be able to achieve it during your middle age. You can enjoy personal freedom to pursue a hobby; professional freedom from stressful workplaces, and financial freedom to lead a quality life of your choice.
Small steps today can yield significant results tomorrow; so, invest wisely and become financially independent!