9 Tips to Achieve Financial Freedom This Republic Day

Achieving financial freedom signifies accumulating significant funds to afford a lifestyle of your choice and securing a future for your family post-retirement. This 75th Republic Day, take a pledge to attain financial independence and work towards living a financially secure life. Here are the 9 tips you must know. Read on!

9 Tips to Achieve Financial Freedom

1. Save and Invest

Before making any payments such as utility bills, rent, or any other miscellaneous costs, it is important to set aside money for your investments and savings. This will bring you one step closer to achieving financial freedom. 

If you start making some minor lifestyle changes, you will be able to set aside adequate money that will help you in case of any emergencies. Sacrificing something small now can help you build something for the future. 

2. Recognize Your Current Financial Standing

Assessing your current financial position is very important before you start on your investment journey. Having a comprehensive idea about your income, outstanding debt, savings account balance, and monthly costs, will allow you to create a strategic investment plan. It will help you maintain a certain lifestyle and save money to fulfil your goals.

3. Aggressively Save

Investing and saving from an early stage will help you build a significant corpus that will assist you in attaining financial freedom. If you concentrate more on fund selection, asset allocation, and portfolio rebalancing than saving a significant amount from an early stage, it can help you fulfil your desired financial goal on time.

4. Manage Your Expenses

Before saving, it is more important to manage expenses. If you are unable to keep your expenses proportionate to your income, your investment and savings journey will come to a halt. Make purchases based on your ‘need’ more than those you ‘want’. There are various applications and software that help to track expenses such as travel, shopping, eating out, etc.

5. Asset Diversification

Before you start investing, you must have a comprehensive idea about how each asset class performs. Different assets perform differently in different circumstances and market conditions. Investing in different asset classes and having a diverse portfolio will allow you to have a balanced investment journey and your returns will not be affected much by market conditions changes.

6. Regularly Review Your Investment Plans

Sticking to a single investment plan from the start can adversely affect your portfolio. Assess your portfolio regularly and review the market situation to create a new and updated investment plan that will keep you ahead of the market curve.

7. Never Ignore Inflation

Ignoring and underestimating inflation can significantly impact your portfolio over time. If the inflation rate is even between 6 to 8%, it can significantly affect your monthly and annual expenses. Also, remember, medical or health care costs as well as lifestyle expenses can rise due to inflation.

8. Retirement Plans

Planning for retirement is one of the most important things in an individual's life. If you do not save for the future, your life post-retirement era can become very financially challenging. Investing in a retirement plan can be very helpful in staying financially independent, even when the regular source of income vanishes.

9. Using Loans Smartly

Choosing appropriate loans can be very impactful in your financial planning. Taking education loans and automobile loans, for their appropriate purposes can help you keep your savings untouched. When looking for loans choose Poonawalla Fincorp to get the best deals in terms of interest rates and repayment tenure.   

Also Read - What is Personal Loan? Things You Should Know

To Conclude

Create an investment plan to attain financial freedom and start your savings and investment journey as early as possible. Follow a strategic plan according to your risk appetite and income to reach your financial goals on time. Follow the tips mentioned and inch towards your financial success one step at a time!  

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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