Financial freedom is the thing which everyone wants in their life because nobody wants to work in their whole life for money but in actual not everyone gets successful in achieving financial independence because some people misunderstood the meaning of becoming financially free.
First of all let me explain What is financial freedom ?
In simple words, Achieving financial freedom means earning so much of money in a fixed span of time so that you don’t have to work for money for the rest of your life.
You can buy whatever you like, travel wherever you want and when you go to a restaurant with your family or friends, you don’t have to look in the price list to decide what you want to eat.
But some people misunderstood this term and they started trying to earn quick money by shortcuts like they will play lotteries, start betting and get in false promises of 21 days money double guarantee schemes due to which they even lose whatever they have saved in their life.
If you also have the myth of getting financially free by these methods then you should come out of this as early as possible.
Earning so much money in a fixed span of time means working so hard initially to grow a tree which will give you fruits for the rest of life.
I am going to list some methods below which will help you to grow this tree in the next 10 years.
- Start investment
- Health insurance
- Learn daily
- Read books
- Save more than you spend
- Self Control
- Get out of myth of business
- Negotiation skill
- Take care of your health first
Investment is the first step to reach financial independence. You should invest at least 30% of your monthly income.
Hire a financial advisor or do yourself own if you have good knowledge of investment. You have to diversify your investment in mutual funds, Stock market, Fixed deposits, Bonds and real estate to get at least 15% returns per year.
Don’t think 15% is not a small amount because it can give you multibagger returns if you are not liquidating your investments. You will get the eighth wonder of the work i.e. compounding interest which will multiply your returns at maturity and make you financially free at a young age.
For example, If you are 25 years of old and your monthly income is Rs 75k per month. You are investing Rs 20k per month in mutual funds with an expected returns of 15% per annum for 25 years.
You have invested 20*12*25 = 60 lakhs. If you withdraw your returns every year then you will get 2.25 crores at maturity but If you don’t withdraw then with compounding, you will get 6.4 crores after 25 years. Your money multiplies more than 10 times. This is the power of compounding.
Majority of the people don’t take health insurance because they don’t understand that they are digging their own grave of savings. Medical inflation is increasing at the rate of 12 percent per year which led to increase in medical costs.
Imagine you do not have health insurance and you have a savings of 10 lakhs.
You met an accident which led you to serious injuries and your all savings vanished in the treatment but you know If you had a health insurance of 10 lakh health insurance, it would cost only 10k per year which could save your 99% of savings.
This is why health insurance is a must nowadays as it preserves your savings. Always remember prevention is better than cure.
If you want to reach financial independence, you have to continuously upgrade your skills to earn more.
You have 24 hours daily. Spend at least one hour of time daily to learn something new. You can do some courses to acquire new skills. Nowadays, You do not need to join any coaching centre offline to acquire new skills.
You can do online courses for free at youtube or paid courses from udemy or coursera and many other online platforms.
Book reading is the most common habit of successful people in life. The knowledge which you can get from books are the most precious for life. It gave you a different perspective of life. It increases your creativity and makes you smarter than before.
Reading books also improves your concentration and focus. The authors describe much better about topics in a book than you will find in videos.
By reading financial and money making books, you will learn different ideas to multiply your money in a short span of time. Search for the book “Rich dad poor dad”. This is one of the best books on money making.
Save more than you spend
If you successfully develop the habit of saving more than spending then nobody can stop you from making a millionaire in a few years. Very few people are able to develop this habit in them because greed is the weakest emotion of a human being which stops a person from saving more money than targeted.
If you want to become financially free in the next 10 years than then you should only buy what you need because there is a very famous quote saying
“ If you buy something which you don’t need then in the future you will have to sell what you need”.
More you save will result in more investing which will give more returns in a short span of time.
Nowadays, credit cards have become a part of our daily life. Credit cards give you a repayment schedule of 45 to 50 days. It is an asset for you or a liability for you will only depend on how you are going to use it.
Credit card companies give multiple times the spending limit of a card as compared to a person’s salary due to some people starting overusing their cards and then they come under credit card debt for a long time. This bad habit shaves their savings account.
If you are also in the habit of overusing your credit card then keep in mind that you cannot become financially independent in your whole life. Even If you are getting 15% per annum from mutual funds and you are also in a credit card debt then you are getting negative returns because Credit Card companies charge huge interest which varies from 22% to 45%.
If you cannot have self control in your spending habit then you should avoid credit cards but if you learn to use this thing smartly then nothing is better than a credit card.
Get out of myth of business
Many people are in the myth that only businessmen can become financially independent because they can expand their business in various ways.
They can sit in one place and do business in the entire world. They can autopilot their business but the reality is that not every businessman becomes financially free in his life. Only skillful men whether he is doing business or job become financially free in this world.
Have you heard the name of Sundar Pichai ?
He is not a businessman but he is taking a salary of 1721 crores per year. So If you are doing a job, start working on your skills to get higher packages to get financially independent.
There is a famous quote “One rupee saved is one rupee earned”. This is where your negotiation skills come in. You can save lakhs of rupees in your life by using this skill.
Whether it’s paying your household bills or making investments, this skill comes into use in every moment of your life so it is very important to master this skill. Keep in mind always that everything you buy in this world is negotiable so make sure to get the offer price when you go to buy anything.
Take care of your health first
It doesn’t matter how much money you have if you are not healthy. You can buy everything with money but cannot buy your health back. So taking care of your health is a must to lead a good life.
Do daily exercise and meditation. It will make your body strong and cool. You have to take care of nutrition in your diet also because it directly affects your mental growth which will influence your financial growth. After eating some fatty kinds of foods, you can feel lazy which can result in underperforming your abilities so you should avoid that kind of food.
If you are doing a job, then there is a limit of sick leaves also. So a health issue will also result in a salary cut.
Learn yourself or hire a nutritionist to lead a healthy lifestyle.
Learn in depth – How to stay fit and active always ?
I Hope you have understood all the points above and will apply them all in your lifestyle. Best wishes from me for your success on the road of financial independence.
If you have any questions, feel free to ask in the comment section below.
Imagine When you are for outing and you don’t have to plan your trip according to your budget. The feel which are getting now is the same.
It totally depends on your wishes and greed. Some people are even not satisfied after earning crores and some are satisfied after earning lakhs only.
There is no formula to get rich quick. You have to work hard and consistently to get rich.
It happens only because they are never able to change their mindset.
You can earn billions in any kind of niche if you work smartly.
Blogger | Domain Hunter | You tuber
I hope you like my work. Have a good day!