We all are struggling daily to earn money either by job or business. This all we are doing to fulfil obligations for daily needs, something to buy, paying EMIs, Kid’s school fee, little entertainment and for other liabilities. These liabilities are always keeping us engaged and not even allowing us to take a break in life for a while.
How is our present life pattern ?
People in India start working from age 22 and continuously working till age 65 around 40+ years without break. The life struggle for money is keep us engaged and not allowing to think other than to fulfil liabilities.
We are just getting up in morning and always in hurry to go to office or work place. Whole day working hard so job can be sustained or money can be earned. At Night coming late completely exhausted. This is happening on almost daily basis and till whole life we are flowing the same pattern of life. Just to satisfy our self we are going on vacation for a week in one or twice in a year. This very little break in life is just like one drop of water for completely thirsty person.
This present pattern is leading our life where ?
If you really see there is no fun & adventure in our life and we are not even thinking that what should be the vision of our life. This continuous life struggle is actually making our live more monotonous. Other than liabilities we are not able to think and the main reason is that we have not enough earning even to match all our liabilities.
What is stopping us ?
Many things are stopping us even to think to be free. If we think also many factors are stopping to go forwards to do something out of the box. The major reason is our social infrastructure where dependents are more than the earners. This the main reason where earning members are fulfilling liabilities of their dependents especially of kids till age 22-25 till they get the job. In present time the cost of education is hitting our savings so badly. Let’s see what are the major liabilities are hitting us more.
Major Monthly liabilities
- Need money for daily needs
- Need money to pay home loan EMI.
- Need money to pay other loans EMIs.
- Need money to take care of clothing.
- Need money for kid’s school fee.
- Need money to maintain lifestyle.
Major Long term liabilities
- Need money to pay down payment for home.
- Need money to buy vehicle.
- Need money to buy stuffs for home
- Kid’s higher education.
- Kids marriage
- Parent liability ( If your parents are dependent on you )
If we think about all these liabilities and calculate the required money then you will be surprised that even these all liabilities we will not able to meet if we work till your age 80 also. But we are owning these liabilities and any how manage to fulfil also with available earnings.
What we want ?
We want to live stress free life with all comforts. We need peaceful relaxed life with quality lifestyle. We do not want to sit idle, we want some good work where we can enjoy every moment of life and do the work with passion. This all will make life cool and give way for beautiful life.
But suddenly we realise that this all thing are not achievable in this realistic world especially in India and we are just living the way life is stretching us and struggling every day every moment of life.
What is the way out ?
At some point of time in life it should be stopped and we should get break in life so we will enjoy our time with money without working for money. To come out from this all is not so easy & quick but yes it is possible to achieve if we think out of box and find the solution to achieve. We are keen to do but we are not able to find the way so we can able to fulfil all the obligations and live life freely.
If we search on internet we found the phrase “Financial Freedom” is the only solution which will help us to get good stress free life where we can enjoy our time and money both. After reading about required money which is in crore to be financially free and after knowing this generally we are closing the window of our computer and mind too. This is the main road block to achieve this. That is why In India financial freedom is not so popular. Many reasons are influencing our thought.
- Earning opportunities are not stable.
- Earning is low to achieve financial freedom.
- Expense are more than the earning.
- Earning is not able to meet requirements of even needs.
- Housing & durable loan burden are enough not allowing to think of financial freedom.
- Kid’s liability of education & marriage is not allowing.
- Responsibility of parent & family is not allowing
And many more such reasons are actually not allowing us to think forward on this subject. Most of us are in impression that it is not possible to achieve and better to live the life as the way it comes.
Our thinking about financial Freedom
Our general impression about financial freedom is that we should have this much money in our bank which take cares of all the needs, liabilities and sufficient to lead our life till age 80-85 and if we calculate the money required we found that even our earing and regular savings are not enough to take cares of our basic need & liability, having good free life is only dream.
In India how financial freedom works
To know more deeply if we get into the depth of financial freedom then it important to know how it will work in our country or precisely at place where we are living in. Few important factor to be looked in.
Income per month :
First we should understand that effort required to achieve financial freedom are different in different brackets of income.
If your earning bracket is higher earning bracket like net income 2L+ per month then financial freedom is easy to achieve.
If your earning bracket is of net income 1L+ rupee then also it is achievable in little long run.
If your earning bracket is of net income 50-70k per month then it is also achievable but in longer run.
If your earning bracket is of net income less than 50k per month then also it is achievable but it will takes time and need extra effort to achieve.
Spending per month
If you see the spending pattern of all four cases you find vast difference in their habits and head of expenses. Those are earning more are spending more. Those earning less are spending less. So it’s depend upon the spending habits and difference in liability expenditure.
Saving per month
Saving of the month is completely depending on earning per month and spending per month. If your earnings are more and expenses are less than you can able to save good amount of money per month.
Let’s take case of the person who want to earn 1 lakh rupee per month to enjoy the life.
In this case there are few option can be explored to achieve financial freedom.
Option – I : Ideally to get Rs 1 Lakh per month regular income you should have enough money in your kitty which can take care of inflation + Rs 1Lakh income per month. If we are planning to become financial free at age 45 and are considering our age 80 so we require money for 35 years is
35 Years X 12 Months X Rs 1,00,000 = Rs 4,20,00,000/- i.e Rs 4.2 Cr.
To achieve such higher corpus goal we should be in higher earning bracket or explore the idea to get 4Cr+.
Option – II : If we are not in higher earning bracket but getting per month net income Rs 1 lakhs+ per month then we can achieve financial freedom in long duration by compounding on saved money. By this regular monthly earning we can make investment portfolio and achieve required corpus of Rs 4.20 in 25 years as per table.
Option – III: If we are in lower income bracket getting around net income Rs 50k+ per month then also we can achieve financial freedom with saved money and extra efforts.
Let’s consider that the required earing per month is Rs 1 lakh per month. You need to see that you can generate at least 50k from interest and rest Rs 50k can be from other sources.
To better understand we can see the example of Mr X who has collected corpus of around Rs 96 lakhs which is giving interest income per month Rs 50k per month. How he has collected 96 Lakhs.
So this way he has collected Rs 96 Lakhs. Now with this money he will get Rs 50k interest income per month.
Now another Rs 50k he has to earn from other sources and he has chosen freelancer works from which he will generate Rs 50k per month. His source of income from other sources are
Mr X is earning Rs 1 lakhs per month so he is financially free now
- He has no 9-6 job
- He can do the work in his own time.
- He can enjoy time with family.
- He can do the work of his passion.
- He can travel the places frequently.
If we are not into higher income brackets even then we can explore the ways to be financially free. We need to think much before becoming financial fee and need to look for the earning sources which is of our liking and same time can able to give reasonable income.
We need to keep few thing in mind which will help us to achieve financial freedom goal.
- Collect the corpus which can take care of monthly needs.
- Keep our expenses low.
- Earning should be very regular
- No unnecessary expenses to be made
- They need to strengthen their dependent so we should have less liabilities
We should also understand that god has given this life to us and only we can decide our destiny with positive thinking. We can explore our mind, do hard work and create sources of income which can help us to reduce the duration to get financial freedom.
So financial freedom in India can be very much achievable as there is good freelancing earning opportunities over 130 crore population. Someone to explore the ways of these opportunities well before target date of financial freedom. This way we can take break of our regular work and same time enjoy the rest of the life stress free.