The 15th of august reminds us that independence is worth fighting for. On 15TH of august, we celebrate our nation’s declaration of freedom from control and influence. Financial independence means freedom. the political independence we celebrate every 15th of august; it starts with a declaration. Here's how to fight for, win and declare your own financial Independence day.
What Does Financial Independence Mean?
The definition of financial independence is having enough wealth to live a life of comfort without the need to work. In reality, financial independence can mean different things to different people. Some people do not have any desire to ever quit working. They want money to be comfortable and the ability to cover an emergency situation without going into debt. For other people, it means freedom from worry when they retire, including the freedom to travel; relax, and enjoy the “fruits of their labor; spend time with family members. Others can see it as being able to support themselves and be there for those who need them without worrying about being able to afford to help or having enough to support. Your definition could differentiate many of these goals.
Whatever it means to you, if you win the lottery or buy a house, it will only happen if you are willing to go after it. The Aryabhata knew India's independence would not be achieved without a fight. And they knew that the fight would not be successful without a strategic plan. So for him, it is also financial independence. The topic we're discussing will help you build your own way to financial independence. But it's important to understand that strategy and prudence can only go so far. Health, personal circumstances, family responsibilities, and social privilege—or the lack of it—play a large role in how free an individual is to build wealth and achieve financial independence. This plan is given in that spirit. The independence and freedom declared on 15th august and won in the Revolutionary War are important to celebrate. But Indians must also recognize that it left out the majority of the new nation's inhabitants; our nation is still fighting to feel and be fully free and equal.
there is no definition of financial independence, there is also no one strategy that will help you to gain it. They say, all strategic plans have some common features. You will need to set financial objectives, choose the assets and financial and otherwise—you need to achieve your goals, decide upon the investment strategies and other tactics you will employ to persevere to keep fighting for financial independence until it is in hand.
Financial objectives are unique to all of us. Thinking about our long-term goals. Do you want total financial independence, freedom from working for a living, and the ability to do as you want? Or are your objectives more modern? Are you OK with an independent lifestyle with some need to supplement your passive income?
Everyone's age and financial situation will influence our choice of objectives. If we are in our 20s or 30s, we have decades to achieve our goals along with the ability to take more risks. At that age, we may even want to pursue what’s known as the FIRE (Financial Independence, Retire Early) strategy, which involves an extra savings and investment strategy designed to allow us to retire far earlier than normal. Or, as the TD Ameritrade survey indicated, our goal may be to be able to pay your bills and avoid debt.
Older than, between 50 and 65, we likely already have retirement savings objectives but even if not, there is time to plan for financial independence. Depending on our goals and accumulated assets, this may involve a riskier investment strategy to compensate for lost time. Or we may need to reset what defines retirement comfort.
Whatever our objectives, write them down. Keep them in front of you as constant reminders of where you want to end it—living a luxurious life, as you want it, of financial independence.
Which of some tools (weapons) will you need to achieve your objectives? These can generate income-producing assets of many kinds ranging from CDs to a portfolio of dividend-paying stocks or a savings account, bonds (or bond funds), and real estate.
Buying a house is many people's largest asset—and may turn into a source of equity or be used in a reverse to help fund retirement. And that is not the only correct way to invest in real estate. Rental properties can also generate significant amounts of cash flow but also require substantial investment and risk. REITs are another way to invest. The COVID-19 pandemic showed us how real estate can drop and grow in value over a short period of time. Over a long time, however, real estate has shown itself to be a consistent wealth.
Other wealth-building assets would be to start and run a good business with the ultimate goal of either not being directly involved in day-to-day management or selling the business for a substantial profit.
Assets also include knowledge and skill. You were not born knowing about rental properties, the stock market, or how to run a small business. You were born with the ability to read, experiment, learn, research, and with different strategies to see what works.
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