The Road To Financial Freedom

If you do not want to live a life where you work till you die, you need to earn financial freedom for yourself (yes, you can earn it)!

A lot of people spend their entire lives working for money, not knowing that they can make their money worth them in return too.

The first step to financial freedom is financial literacy, which is the combination of financial skills and concepts that allows one to make informed financial decisions and never let money (or its lack thereof) get in the way of their dreams.

The best way to get to financial freedom is to use your money wisely and invest it on a long-term basis in places that give you high returns.

Here are some ways that you can start off:

1. 50/30/20 Rule: Instead of spending all your earnings, try to limit your over-expenditure by following the 50/30/20 rule, which states that you should use 50% of your monthly after-tax income for needs, 30% for wants, and the remaining 20% for savings, investments, or paying off debts.

2. Public Provident Fund (PPF): This is a popular saving scheme that offers a combination of safety, returns, and tax savings. It’s open to all citizens of India and you can invest a minimum of ?500 and a maximum of ?1,50,000 in a financial year. It has a minimum tenure of 15 years, and the interest received on this scheme is NOT TAXABLE.

3. Fixed Deposit (FD): It is a risk-free investment tool that allows you to grow a lump sum at a fixed rate, and the best part is that its interest remains unaffected by market fluctuations. It works through a lock-in method, which means money cannot be withdrawn before maturity (you may withdraw it after paying a penalty).

4. Stock Market: It is an option that provides a reasonable rate of return, but it is also a little risky for those who aren’t well-versed in the field. It’s usually better to hold your stocks for a longer duration if you want a higher rate of return (subject to market risks).

5. Mutual Funds: If you do not have enough knowledge of stock markets, mutual funds is the way for you. In this, a number of investors pool their money together and the gains are generated are then divided proportionately among the investors.

6. Gold: If you want to protect yourself from inflation uncertainties, invest in gold. You can purchase it in physical forms, although it’s better to use Gold ETFs because no wealth tax, no security transaction tax, no sales tax, and no VAT is levied on it.

Remember, at the end of the day, it’s not about how much money you make, but how successfully you manage it that determines your financial freedom.

Did I miss out on anything? Let me know in the comments section. ??