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What is Financial Freedom?

What Does Financial Freedom Mean To You?

Introduction

India is celebrating its 72nd Independence Day tomorrow on 15th August 2019. So Lets discuss about what is financial freedom or financial independence from personal finance perspective. What Does Financial Freedom Mean To You?

What is Financial Freedom?

  • As we all know, India got the freedom on 15th August 1947. This freedom was an outcome of sacrifices made by great leaders.
  • In the same context, for investors, financial freedom will come at the cost of years of savings and tactical investments to create wealth.
  • Financial independence is about taking ownership of your finances. You have a dependable cash flow that allows you to live the life you want. You aren’t worrying about how you’ll pay your bills or sudden expenses. And you aren’t burdened with a pile of debt.
  • It’s about recognizing that you need more money to pay down debt and maybe increasing your income with a side hustle – we’ll get to that in just a minute. It’s also about planning your long-term financial situation by actively saving for a rainy day or retirement.

Key Features of Financial Freedom vs Debt

What is Financial Freedom?
What is Financial Freedom?

What Does Financial Freedom Mean To You?

  • How about you being able to celebrate your own Independence Day or your Financial Independence Day to be more precise.
  • What Does Financial Freedom Mean To You? Does earning a big salary mean financial Freedom? In spite of having a high salary, why people many a times feel cash strapped when some emergency strikes? 
  • The answer is simple for those who understand the difference between income and wealth, and how to create it manage to be financially independent.
  • Also we need to value money for what it is and look at the money positively as an investment or savings than as a expense.
  • Income is merely the flow of money that enables you to meet your day to day expenses, provide for your living, some leisure and wants to be able to survive.
  • Whereas wealth is an outcome of what you do with the income and how well you accumulate and improve your financial strength to be able to sustain for a long term.
Financial Planning
Financial Independence and Investing
  • According to financial goals or objectives, Investing is the right way to achieve financial independence.
  • Apart from the traditional investment options, experts are of the view that equities alone can get you the financial independence.
  • Investing is not a one-time activity but more of a continuous process. The investment methodology will be different when you start investing in your 20’s and will change when you turn 40 and later on towards your retirement age, above 60’s.

Conclusion

In short, financial freedom is when you don’t have any kind of financial stress or any worries. Your investments are in the right place and are in a position working hard for you.


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