What is Financial Freedom? How to Achieve Financial Freedom in India?

Financial freedom is very subjective and depends on how you define it.

Before achieving the financial freedom you must define it. What does it mean to you? For some financial freedom is to have an early retirement, for some, it is to be able to choose the career path they love even if it pays less. Some even define it as the ability to meet emergency expenses.

Steps to Achieve Financial Freedom

Once you have defined it, put effort to achieve it. Here are steps to achieve financial freedom.

Figure out where you stand financially now

Before you move ahead to achieve your financial freedom, take a minute and step back to access your current situation. Have been losing out on your money? Where do you stand with the loans that you have? Will you be able to pay it in the form of EMI or instalments?

Track your spending

Calculate your monthly spending and savings. This might seem like a petty job but it’s a major step in your financial planning.

Adjust your expenses

Have you been living off limits? Have you been spending a lot more than what you earn? Adjust your expenses before you fall into a debt trap. Cut down on your expenses. Instead of eating out 5 times a week eat at home and save some money.

Set goals

Being financially independent requires a destination. That destination is the goal you set to achieve financial freedom. This step requires you to think about the future. Question yourself about where you want to be in 10 or 20 years. Having a house, a car or having enough to send your kids to reputed universities. Having goals is the first step to achieving financial freedom and it also helps instil financial discipline.

Develop a strategy

Device a game plan to achieve your goals. Know about the different investment options available for you to invest. Meet a financial adviser and seek his help. Time your goals and start investing in the investment products that suit your requirements.

Be active with the plan

Your job isn’t done once you start investing. Follow up on your investments on a regular basis. Re-balance your portfolio according to your needs and goals.

However, all these steps can only guide you, you have to work on these to achieve financial freedom. There is nothing like feeling stress-free to pay for those emergencies without looking for a helping hand.

Hope this helps. Stay motivated and become financially free.