Why do people work? To fulfill their basic needs such as food, shelter, clothing, medicine, and water (don’t we pay for bottled water?). Apart from that, we also earn financial independence.
People live from paycheque to paycheque. They work five or even six days a week but end up spending whatever little they have earned. In such a scenario, how can one become financially independent? Is there a way? Yes! There is! Moneymindz, India’s First Free Online Financial Advisory
If we want sufficient resources not only for our present but also for our future, we can’t rely on a single source of income. We aren’t talking about getting a second (or third) job here. We are talking about careful planning and execution.
1. Begin now
Stop procrastinating. You will never reach your desired goal if you don’t stop procrastinating. No matter how much ever you want, if you put it away for later, it will never come. Like people say “Tomorrow never comes”. If you’re early, you are at an advantage as you have time at your side. The power of compounding works better for you as you give it more time to increase. If you are late, then remember the adage “Better late than never”.
2. Save and invest
Save a part of your salary each month, and use the rest for basic needs and daily expenses. That way, you would have ensured money for your savings before spending the rest of it. Once you are done with your budget (your income, expenditure, savings, investments, insurance, financial goals and time frame) you are ready to invest. Decide your risk appetite and invest according to your financial goals and time frame. Moneymindz, India’s First Free On call Financial Advisory
3. Prioritize your goals
Your short-term goals are goals that can be achieved before 3 years, midterm goals take 3 to 5 years to achieve while long-term goals are goals that you will take more than 5 years to achieve. Make informed decisions and STOP following the herd.
4. Contingency Fund and Retirement
Apart from all other investments, an Emergency Fund and a Retirement Fund hold the most important for you. You should always have a Rainy Day Fund so that in times of emergency your savings don’t get depleted or force you to take loans. An emergency could be anything, hospitalization, loss of active employment, etc. It has to contain 6 to 12 months of your monthly income. Saving for your retirement is important as you have to take care of yourself during retirement. You can’t expect social; security or your children to take care of you.
For more information visit www.moneymindz.com and interact with Smart Financial Advisor Kuber Mindz or give a missed call to 022-62116588.