How to be Financially Independent
Feel very proud & blessed as we all are soon going to celebrate our 70th Independence Day of our beloved country, similarly How can we all be financially free & independent?
Satish & Swati again visited our office…This time they had an interesting question, we have protected ourselves with life Insurance, what if we live long?
Yes, in today’s times, the risk of survival is equally bigger… If we sum up the ever increasing lifestyle expenses and add inflation, we all will be spending 5 times of our current household expenses 25 years later…and we must be retired by then… Our generation is lucky that we all are able to take care of our parents, but in the current competitive world, if we expect our children will do so, it will be our mistake…So, if we want to really live the second innings, independently, then we should start building our retirement fund, today.
As per the current expenses, we derived that they would need 5 crores corpus to live independently 25 years later. thus they needed to save only Rs. 16,000 in Equity mutual fund SIP’s to create an Independence Corpus… Satish exclaimed WoW, let’s start it today; I really feel as if I am already independent now.
This week’s Fisdom:
Just like our beloved country is free and independent, we too should be independent. Independence means dignity, independence means security; why expect anyone to look after you when you can look after yourself with a little planning. Plan it out!
This is a small effort from Team Arthashastra for investor education and we strongly believe, Together We Can, & We Will make a Difference.
Wishing you all a Happy Independence Day.