FINANCIAL INDEPENDENCE

Finominal Education

FINANCIAL
INDEPENDENCE

FINANCIAL The 15th of august reminds us, that
INDEPENDENCE 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.

Financial Independence
Strategic Plan

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

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.

Assets

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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