Happy Independence Day! Let’s Invest to Attain Financial Freedom
Independence is the complete freedom of control from other people or a group of people. Our country, i.e., India achieved its independence 71 years ago on 15th August 1947; but are you independent completely! The literal meaning of independence is to be free from all the forces and live life effortlessly without depending on others.
Not everyone is independent because if we see India from financial context, not everyone is financially independent. In India, still, a major portion of the population is dependent on the guardians or other family members to fulfil their financial needs. Let’s attain financial freedom this independence day to set ourselves free from all dependency and live the life to the fullest. Here are the best ways to achieve financial freedom.
1. For Retired Individuals :
Generally, the retired individuals are dependent either on their pension (if they are getting any) or on their children. But, why to depend on others if one can be financially strong enough to meet various expenses even post retirement. Here are the best tips to attain this objective:
- Keep Cash for Instant Requirements : Try to keep cash or a cash equivalent which could meet your expenses for at least six months. For this purpose, we have Smart Savings Account which allows instant redemption facility to the investor. Furthermore, maintain a balance between your income and expenditures; if you spend Rs. 50,000 monthly on all the expenses then you must make sure that you have the regular income source of the equivalent amount. It can be achieved well with the help of an SWP plan, which also allows tax benefits.
- Ensure Growth : There are no doubts that your regular income will take care of your general expenses, but you need to be ready to cope up with future inflation. Therefore, it becomes significant to ensure the growth of your money to beat the increasing rate of goods and services. The unbeatable option for this concern is Systematic Investment Plan (SIP), which helps in building a large corpus by investing a small amount regularly.
2. For Goal Planners :
People who fall in the age bracket of 25 to 35 years have different dreams to be achieved. They always run to chase big targets to make their future prosperous and secure. But, in most of the cases, many of them fail to achieve their objective due to the daily life expenses which they have to meet regularly, and their income falls short to chase those big dreams. If you fall under this category and facing same difficulties in managing your finances, here are the ways which will help you become rich:
- Start Investing : There is a famous saying which goes like “small attempts can chase the big dreams, and the objectives thus achieved are unbreakable.” It is quite similar to the concept of SIP which gives you the way to unlock the prosperity. Start investing a small amount of money through SIP in the best-suited mutual fund schemes matching your investment profile. The equity fund is preferable for attaining long-term financial goals.
- Stick to Your Investment : It has been rightly said that, “When you start walking on the way to success, never turn back as it will cost you double.” It means that once you are determined to achieve a target, don’t get demotivated by falls because it may cost you time and money both. So, try to stick on your SIP investment for the long term because withdrawal may cost you the power of compounding which you would earn by that time.
3. For Young and First-Time Savers :
For the young people and the first-time investors, we would like to convey a message - “It's how you deal with failure that determines how you achieve success.” The young investors have more potential to gain excellent returns from the investments. They are energetic and have more goals to achieve in their life which can be possible only through adequate finances. But most of them are dependent on their parents, and some just have started earning their bread. So they need to be more cautious about planning their entire future. If you are a new investor or a young individual, here are some of the options which can help you make your future financially wealthy and independent:
- Set Clear Financial Goals : You must spend some time to gain knowledge of the best mutual fund investment process, i.e., SIP. You will be excited knowing that you can have the most excellent benefit of investing which other categories of investors don’t get. As you are young, you have a long time to achieve all your future goals. You can avail the best advantage of the power of compounding by getting started in equity fund investments at the earliest.
- Get Risk Cover : You must also get prepared for all kinds of risks that can approach in life. So, invest a portion of your capital in the debt and liquid funds which assure regular earnings and liquidity.
Celebrate this ‘Independence Day’ by getting yourself completely independent. Enjoy the financial freedom rather being dependent on others for one or the other financial need.
We, the entire team of MySIPonline wish you a happy and prosperous
71st Independence Day of our country, Jai Hind!!!
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