Jay was just a small guy, who was just about to open the first Cafe.His spouse had just stopped working following the birth of their first child.Just after everything looked perfect to him, a deadly disease called COVID was averted and created havoc in his blissful land.Suddenly the business sank to a new low. There were barely any customers or orders, but it was an otherwise, it was a bustling area, something that was not thought of off.The revenue dropped to almost nothing however the obligations did not. There was still the need to cover rent as well as EMI for the credit taken to start the café, etc.Having little savings, or no another source of income aggravated the situation, however his father came to help him and helped Jay to pay his debts and make it through the difficult year. Over the past year, numerous people were in the same position as Jay however they weren’t as fortunate to have someone helping them.The epidemic has caused the need to be financially self-sufficient.
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Financial independence can be described as being able to earn enough money to cover expenses of living throughout your life, without being employed and dependent upon others.But it could be different to different people , but with the same basic idea that it’s a condition in which one can pay for at most basic necessities without having to depend on anyone at all times of life.It’s an age in which the money that you’ve put into it, is used to create an annuity every month.”But why is this important?” many may ask.The motives are numerous, but one of them being:
The older generation was a part of the village system, which provided the feeling of security in the financial and emotional aspects and everyone would assist one another in the need, but this system was destroyed and the system of joint families crumbled.Now with single families becoming the norm, everyone has to take care of himself, and this creates imbalances in the financial and the social and emotional Systems.Stability which was the basis has gone away, which is why the requirement for early financial planning to satisfy the essential as well as aspirational demands of everyone must be planned in advance by setting goals.
Today , loans are available for anything – personal, vehicleor travel loans, but there’s no loan available to people who are living beyond retirement.Life expectancy is rising, and the time to earn a decent income over an individual’s lifespan has decreased considerably.The current norm is to retiring at 50 and continue to live until 90. 90.Also,unlike the past, life begins at 50 , costs have increased as a result of travel in pursuit of one’s goals/interests, or medical bills follow.You require enough savings to ensure an enjoyable post-retirement phase.
It is generally believed that someone with a good financial position performs better, grows faster and is more successful in their career. They also live a life that is at peace and without stress since their motivation to work is not derived out of necessity , but rather from a desire to do so.
Financial independence can be attained through a good financial habit and effectively planning and investing.The appropriate time to begin financial planning is the time you provide the money in your pocket to your child. When the world of today is all about instant gratification, we must show them that delaying pleasure allows them to appreciate the anticipation of more rewards when they work and wait for it. This helps in establishing determination, self control and self discipline earlier in life which makes them better people and responsible financially Investors.As it is said: It is best to start early and invest to reap.
Beginning early lets investors reap the benefits of compounding returns. value of money is increased over time, and with just a tiny amount of money, you could build a huge corpus.Patience and discipline, as well as a determination to achieve your goals are the traits that are required in addition to a quicker start to accumulate wealth and attain true happiness and secure independence that won’t be shattered by an extraordinary event, like an epidemic.
You’ve celebrated the nation’s independence many times But when are you going to mark the day that marks the beginning of your financial independence?