Have you ever wished to be financially independent? Paying off all your bills on time and even after doing so, having enough money to spend on the things you like? Well, it’s my pleasure to tell you that 2020 is your year and that you’ve come to the right place. Of course, hard work and more than that, smart work is the fuel to sail this boat. Having a financial advisor makes the task a lot easier.
Being dependent on someone financially isn’t the best feeling and if you’ve got the opportunity to work towards the attainment of financial independence, then why not? So, let’s just dive into all the possible things that you can do for yourself:
Table of Contents
Preparation Of A Budget Of Existing Expenses:
Believe me or not, but this is where it starts. Start maintaining a diary in which you just pen down all of your expenses, as and when they happen. By the end of the month, you’d be surprised to see how much you spend. This is where self-assessment comes in that you need to do for yourself.
Evaluate your expenses carefully and if you think you spend a lot on something, try imagining your life without it. If you can do so, you don’t need it. For instance, if you think you spend a lot of your money on shopping, not buying your favorite pair of shoes which is probably not even required, won’t hurt a lot. Now, on that note, prepare a budget for the next month and see the difference.
Investment In The Various Available Securities/Bonds/Mutual Funds:
Investment is an unsung synonym for financial independence. The first rule of financial independence is starting to invest with anything you have. But but but, not before you get yourself off the liabilities. If you have any liabilities that take away the majority of your income, focus on getting rid of that first. Once you are free from any major liability, start figuring out your risk appetite. Your risk appetite is precisely your appetite to absorb losses if any.
If you do not know the stock market, you can start by investing in mutual funds. One of the best ways to start is by getting from wealth managers like Shree Balaji Investment Solution. SIP is a means to invest in mutual funds. As they’re based on the method of compounding, mutual funds promise a good return if you are planning on investing on a long-term basis. However, if you’re someone who has always been fascinated by the stock market, you can educate yourself.
You can also invest in bonds that have been giving out decent returns. However, Bonds have a lock-in period. If you are considering investing in bonds, take only the sum that you can keep aside for that period of time. Or if you are looking for something safer than the said, you can simply put your savings in an FD i.e a Fixed Deposit. Fixed Deposits can be withdrawn prematurely and have a higher interest rate than your savings account. Having an FD will not just help you save your easily accessible money but also give you decent interest compared to your savings account.
Get Yourself Insured:
Getting yourself insured today is of paramount importance. The given uncertainty of our lives today has made it more crucial than ever. Having insurance does not just get you mental peace but also a comforting financial cushion. Let us break the myth for you, insurance is an investment, not a liability! Investing in insurance is the wisest thing one can possibly do especially if you have a family that depends on you for their survival.
Generally elderly with chronic health conditions require more coverage than the elderly. Before opting for insurance, make sure you go for a copay and low deductible cover. This will help you reap better benefits of your insurance. Visit Shree Balaji Investment Solution to find a suitable plan for yourself.
Buying insurance well in time is extremely important. Moreover, being without life insurance makes you further predisposed to inevitable circumstances in life. Further, being a smoker can also reduce the maximum cover cap. Delay in buying insurance can cost you a fortune. The cover would even go down to peanuts and you surely won’t wish for that! So the sooner you buy it, the better you reap.
In the era of consumerism, being financially independent can be a tough job but investing is of primary importance when it comes to financial independence. With ever-increasing inflation, merely sustaining your single source income is not sufficient. Being financially sound and independent is the need of the moment. Having a surplus is of par importance and planning out your expenses beforehand can make you financially sound and stable.
