It’s an interesting word in today’s life as people are now want to be financial free but fails quiet often as we are not disciplined in our life in terms of savings and investments. Financially free means that we are getting more than our expenses and loan payment and even save 10-20% after all expenses from our savings and investments. It sounds to be very good but very hard to achieve as people keep on looking for more and more and even on increasing expenses day and day and improving life style.
There are some tips for getting you to be financial free while reaching in 40-45 years of age:-
(i) Savings and Investing:-Always make a habit of savings, while you are young you will join any company after graduation or higher education between 24-26 years of age so upto 28- 30 years of age you are not going to get married so you have 4 years for saving more than 50% considering very lower expanses while you are bachelor. Now make a habit for investing all that amount in Mutual funds using SIP as Mutual funds will give you return which no other instrument such as Fixed deposit, ULIP plan et. will give, Since you are unmarried you will take more risk so go for mutual funds until you reach 35 years of age.
(ii) Don’t over spend:-
Always spend within your limits never follow others which spend more. Don’t take any personal loan or any debt for spending. Whenever you borrow money for any unfruitful work that will only add to your financial burden infact this will complicate your life and goal of life. Usually people at young age has tendency to buy high end bikes and cars by taking huge loans which over the period of time eat out your all the earned money leaving no room for investments.
(iii) Try to invest in property:-
Best investment will be of your life will be property buy some good property at some good price at good location with the help of elders or good property dealers. Property apart from appreciation will save your rent and even give you rent when you are living with parents this will leads to addition to your monthly investments.
(iv) Never ever expect higher returns on your investments:-
Never expect the unexpected returns from your investments good investments will give you 12-18% annual returns. If any investment tool offers you higher return never ever invest such returns it will be trap.
(v) Don’t invest higher amount on non-returnable assets:-
Don’t invest higher amounts on those items which over the period get depreciated such as Cars, bikes, High end LEDs etc. Buy them for as per your needs. This will you will realize over the period of time.
When you become financially free than buy items which you required to fulfill your dreams from additional money you get after all expenses. You will enjoy your life for rest part of life.