Join Courses
Attend Webinars
Get Free Counselling
  • Select Language
    • Hindi
    • Bengali
+91 9903 222 555
Elearnmarkets - Financial Market Learning
Join Courses Of Elearnmarkets
  • Basic Finance
  • Technical Analysis
  • Fundamental Analysis
  • Derivatives
  • Financial Planning
  • Miscellaneous
No Result
View All Result
  • Basic Finance
  • Technical Analysis
  • Fundamental Analysis
  • Derivatives
  • Financial Planning
  • Miscellaneous
No Result
View All Result
Elearnmarkets - Financial Market Learning
Home Financial Planning

5 Easy steps for achieving Financial Independence!

Elearnmarkets by Elearnmarkets
August 15, 2019 - Updated on November 18, 2020
Reading Time: 5min read
3
262
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

On this day, 15th of August we not only celebrate our Independence Day but we also celebrate living in an independent country which has given us so many opportunities to fulfill our dreams.

One of our dreams includes living a financially secured life and having the surplus corpus of funds when we retire.

As we celebrate our country’s Independence Day, we should also take out some time to think about our future and for achieving financial freedom too!

To achieve financial freedom, you can take assistance of Kredent Money App.

What is Financial Independence?

Financial Independence can be described as having enough resources for living without needing to work.

“To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence.”- Jim Rohn.

If you achieve financial freedom, then you can focus on “living life” rather than focusing on how to earn to retire financially secure.

We don’t have to retire at the socially accepted age of 60. If we achieve our financial independence at an early age, we can retire then also.

Here comes to concept of Financial Independence and Retirement Early (FIRE).

FIRE is a program which involves immense savings and investments which allows to retire earlier than the social acceptable retirement age of 60.

One of the most famous cricketer to follow this movement is Sachin Tendulkar.

He earned and saved enough to retire early at the age of 40 from his cricket career.

This method follows the principles of:

  • Cut your expenses
  • Save > 50% of your income
  • Invest efficiently

The basic approach to achieve FIRE is:

1. Keep track of your expenses:

This may sound simple but trust me we have got no idea where our money disappears.

We can keep a track of our expense by paying off it every month and then look at what we spend money on.

As simple as that!

Nowadays there are many applications available which help us to keep track of our expenses.

“You become financially free when your passive income exceeds your expenses.” ~ T. Harv Eker

2. Reduce your spending:

To achieve financial independence at an early age, start reducing unnecessary expenses.

For example: If you pay for your gym membership, then be sure that you use it. Many people pay at the end of every month intending to use it in the future, and they rarely do.

Even if you do use the gym then you may be able to cut this expense and simply exercise at home.

“If you want to be financially-free, you need to become a different person than you are today and let go of whatever has held you back in the past.” ~ Robert Kiyosaki

3. Calculate your Financial Independence number:

As the FIRE rule of thumb, if your net worth is more than 25 times your annual expense, then you can be financially free.

This implies how much net worth is needed when we attain financial independence.

However, many people choose a higher factor for unforeseen emergencies.

financial independence

4. Achieve tax efficiency:

One should try to invest in those financial instruments where we can avail tax deductions.

These days there are many tax saving instruments available in the market such as ULIPS, New Pension scheme, ELSS which help us to avail tax deductions.

5. Try to invest efficiently and aggressively:

As FIRE people are younger and they have more time for recovering from down markets if they need to; then the key is to invest and capture the market returns as efficiently as possible.

“If you are not financially independent by the time you are forty or fifty, it doesn’t mean that you are living in the wrong country or at the wrong time. It simply means that you have the wrong plan.” ~ Jim Rohn

Overall, to attain FIRE depends more on the willingness to develop a financial freedom road-map and sticking to it.

Moreover, it’s not much difficult if you are ready to make some small important optimizations in your life.

From starting today, you can consider the above recommendations, plan your future, redefine the idea of retirement and achieve financial independence!

So on this Independence Day let’s celebrate Financial Independence!

Happy 73rd Independence Day!!!

Tags: basicenglishfinancial independencefinancial planningFIREinvestment in financial marketsSaving
Share22TweetShare
Subscribe To Updates On Telegram Subscribe To Updates On Telegram Subscribe To Updates On Telegram
Previous Post

Significance of 3rd wave in Elliott Wave formation

Next Post

Difference between Volume Traded and Volume Delivery

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

Financial Planning

Fund Manager – Why & How to choose the right Fund Manager?

December 29, 2020
564
Financial Planning

Debt Mutual Funds – Meaning and Types of Debt Funds

October 24, 2020 - Updated on November 18, 2020
307
Financial Planning

5 Products to help us plan for Retirement

October 10, 2020 - Updated on December 2, 2020
754
Best Retirement Plans
Financial Planning

Best Ways to plan a Secured Retirement Planning

September 26, 2020 - Updated on November 18, 2020
271
Next Post

Difference between Volume Traded and Volume Delivery

Everything you should know about Personal Loan Balance Transfer

financial-statements

Major loops between Standalone vs Consolidated Financial Statements

Comments 3

  1. Bullion Capital says:
    1 year ago

    Wonderful article on capital and savings. Thanks.

    Reply
    • Sakshi Agarwal says:
      1 year ago

      Hi,

      Thank you for reading!

      Reply
  2. b school delhi says:
    11 months ago

    Only wanna say that this is very beneficial, Thanks for taking your time
    to write this.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Download App

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

GET ARTICLES ON EMAIL

Enter your email address:

Categories

  • Banking
  • Basic Finance
  • Bonds & Fixed Income
  • Budgeting & Savings
  • Capital Markets
  • Charts
  • Charts, Patterns & Indicators
  • Commodity, Currency & FOREX Market
  • Derivatives
  • ETFs & Mutual Funds
  • Financial Planning
  • Financial Statement Analysis
  • Fundamental Analysis
  • Macroeconomics
  • Market Analysis
  • Market Updates
  • Market Wrap
  • Marketshala
  • Miscellaneous
  • Open Interest
  • Personal Wealth
  • Retirement Planning
  • Sector Analysis
  • Tax Planning
  • Technical Analysis
  • Trading Terms, Rules & Strategies
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

© 2020 Elearnmarkets All Rights Reserved

No Result
View All Result
  • Article Categories
  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Market Analysis
  • Miscellaneous
  • Technical Analysis
  • Select Language
    • Hindi
    • Bengali
  • Learn finance
  • Browse Courses
  • Webinars
  • Free Guides
  • Get Free Counselling

© 2020 Elearnmarkets All Rights Reserved