We all know that we need money to fulfil our needs and enjoy life too. To get this we are working very hard and trying to earn as much money as we can. This we are going to do lifelong till we complete all our liabilities and even in older age to run daily expenses we will work to earn money.
Most of us are following this living pattern whole life. This all happening as we are not much thinking to build big corpus for us which can help us to live life peacefully and by it’s return income we can enjoy time & money both.
Any time is the right time to decide what we should do further for financial freedom as long as we are earning. Those has planned to achieve the goal of financial freedom at early age they can do it most comfortably. If we are late too then our target to earn money should be on top and we have to work hard to achieve the goal. Without earning we cannot able to achieve freedom. Also saving money from your earning is equally important.
Have we started ?
At any point of time in life if you decide to create corpus for financial freedom……start immediately as nothing is impossible if someone to achieve. Probably it will take little time but once you decide, new ways will open to help you to achieve.
1. Self-motivation is key of success
We have to motivate our self to keep focus to create corpus. This corpus can only achievable if we earn more and as much we can save. This will help us to collect required corpus at early age. Earning & saving can only help us to achieve it. Many of us are afraid to start to save amount for corpus and they are randomly saving money here n there without any planning. These savings are not getting desired returns and leads to depreciation of your money value.
Few things are very often shelling out our pocket and sometime we are feeling whether we are doing right expenditure or not. Due to these unforeseen expenditure, we are losing heart and becoming slow towards goal of financial freedom. At this point of time we should keep our moral up and motivate our self to cover up any deficit in planed savings. Since period is long and possibility of keeping you slow due to various unexpected expenses will be more but you should be focused towards your goals.
2. Set target for minimum saving
Decide how much we can save per month comfortably and how much with little pain. Try to achieve what maximum we can save. Remember saving of Rs 25k per month ( 3 lakhs in year ) till 25 years can give to 2.3Cr after 25 years which will generate interest income of Rs 1.8 Lakhs per month.
3. Focus on Earnings
This is the only way to get financial freedom at right age or early too. If we target corpus amount and focus on earning so maximum corpus contribution can be achieved. Sometime one source of income is not sufficient to create corpus than alternate sources of income to be explored so contribution amount at corpus can be increased.
We need to work on the ideas which can increase earnings significantly. Brainstorming for ideas has not costing anything. Sometime our ideas for making money can changes the way of life and even at early age we can create sufficient corpus for financial freedom.
4. When to buy what ?
We need to find out the major expenditures those are shelling out pocket but whether we should go for it if yes then when. We need money every month for corpus contribution and this only happen when we keep our expense low according to earnings.
House is one of the major expenditure which we do in our whole life. We all wanted to have own house so we can live life peacefully. Many of us are lucky to have parental house or the house gifted by parents. Those are not having, has to struggle to get own house and for that home loan EMIs will take major chunk of income every month till 15-20 years.
5. Whether house is required?
Yes we need at least one house of own so in case in any bad circumstances it will give shelter to us which actually comes under social security. At very initial stage of our carrier it will be difficult to buy house but after getting substantial income it is always good to have one house and also loan liability has to be close by at age 45-50 max, if it is extending then the interest on corpus will take care of EMIs during financial freedom.
While choosing house we should see that house should within the budget. To buy dream house we required good amount of money. It is always advisable to invest in suitable house which is comfortably to our pocket even if it’s not much of our dream house. Because at later years we can sell this house at good rates and can add more amount to take our dream house. In later age our income will be more, so taking dream house may be much convenient. But if we take such property of higher budget, our major money will go in this and then saving money for financial freedom corpus will be very difficult. Better to take property at location where in later date development will happen and property and rental value will increase. This property should be within our budget so before age 45-50 we can able to repay the loan burden. If it’s our second house then it should generate substantial income in future and by this earning we can enjoy life.
6. Asset / Savings should generate cash
The assets/ investment tools in which we are investing money should able to generate income in future in form of cash so it will take care of our needs during financial freedom time. Sometime our asset value is more but they are not able to generate sufficient cash income at our later age. While investing we should keep in mind that our most of the assets should able to generate cash income.
7. Use your talent to create extra income
After working for 5-10 years of our professional carrier we generally learnt many skill through our professional carrier. Sometime we have inbuilt talent in self like, making painting & artefacts, consultation, designing etc. Try to find you tenant/ experience which can able to use for generating substantial side income so this income can be directly saved for corpus. This also further enhance your skill/ knowledge which will help you to create more resources in future.
8. Keep your mind cool
Doing all this it is very important that your health should not get effected. Over work & stress may lead to health problem which will not allow you to enjoy your life comfortably. Making financial plan, chasing target to achieve should not impact your mind. Keep your mind cool if you are fail to achieve monthly contribution for corpus too.
Working more hours will also make adverse effect on your health. Choose such side possession which can give you smart income where returns are more with less efforts. If it is of our interest then we will have less strain and can able to work peacefully in extended hours.
These are few of the things which will help us to gear-up for savings and paved way to achieve goal or financial freedom comfortably. So keep our moral up and set the target of minimum saving per month.
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