This blog is intended to make people aware of financial knowledge, We don't use complex terminology from accounting terms, Our goal is even common person without any financial background should know how to make his money work for him.
Let's start with the basic question What is Financial Independence?
To answer it in simple words let's assume that you stopped working today, and you are in a position to pay all of your bills and expenses, then you are in a state called financial independent state.
To live better life we all should be become financial independent at some point in our life. Some become at 40, some become at 60 and some not at all. Its all depends on our financial habits.
In this post, we are illustrating the ways to achieve financial freedom at earliest
The famous author Stephen Covey quoted in his bestselling book "The Seven Habits of highly effective people" that "Begin with the end in Mind".
If you fix your goals, The chances to achieve are higher.
The common myth is that we can plan for our retirement later, But no, you have to plan for your retirement today, right now.
Why we need to get financial independence (can i call retirement?) at earlier?
It varies from person to person
Some people want to travel the globe
Some want to start their dream startup
Some want to work with NGO's
Some want to pursue their dream career which has not constant earnings like writer,blogger,artist,musician etc..
Others just want to enjoy stress less life with family members.
So, What's your goal? no goals, then think about it. You should always have one.
Let's start with the basic question What is Financial Independence?
To answer it in simple words let's assume that you stopped working today, and you are in a position to pay all of your bills and expenses, then you are in a state called financial independent state.
To live better life we all should be become financial independent at some point in our life. Some become at 40, some become at 60 and some not at all. Its all depends on our financial habits.
In this post, we are illustrating the ways to achieve financial freedom at earliest
Step 1: First and foremost, you need a Motivation
The famous author Stephen Covey quoted in his bestselling book "The Seven Habits of highly effective people" that "Begin with the end in Mind".
If you fix your goals, The chances to achieve are higher.
The common myth is that we can plan for our retirement later, But no, you have to plan for your retirement today, right now.
Why we need to get financial independence (can i call retirement?) at earlier?
It varies from person to person
Some people want to travel the globe
Some want to start their dream startup
Some want to work with NGO's
Some want to pursue their dream career which has not constant earnings like writer,blogger,artist,musician etc..
Others just want to enjoy stress less life with family members.
So, What's your goal? no goals, then think about it. You should always have one.
Step 2: Plan your Budget
If you want to become rich, you don't need to be a financial analyst or trading expert, you just follow below 2 steps.
1. Once you receive your salary/Income, Transfer the amount to your savings/investment accounts (It shouldn't be your primary bank account).
2. Maintain the balance in your primary bank account which is sufficient for your monthly needs.
3. Stop using credit cards.
Credit cards makes us tempt to do unnecessary shopping most of the times.
Some people will argue that, we use credit cards only at emergencies. Then, why you are not maintaining your emergency fund at first place?
If you are using credit cards then you will end up with improper planning.
Once wall street reporter asked warren buffet "What's the advise you want to give to youngsters?"
Buffet Replied that "I urge the youngsters to Stay away from Credit Cards"
Credit cards makes us tempt to do unnecessary shopping most of the times.
Some people will argue that, we use credit cards only at emergencies. Then, why you are not maintaining your emergency fund at first place?
If you are using credit cards then you will end up with improper planning.
Once wall street reporter asked warren buffet "What's the advise you want to give to youngsters?"
Buffet Replied that "I urge the youngsters to Stay away from Credit Cards"
It looks simple right? but, you know simple things are hard to follow, I believe the same steps you might heard from many people on many times. Are you following it?
If i ask you, Whats your average expenses per month, Do you have an exact answer?
If Yes, Thats Great.
If no, Start noting down your expenses from today on wards for the next 1 or 2 months.
If you pledge yourself to follow the above steps, Then nothing will stop you from achieving your financial heights.
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