Want financial freedom? MFs, income tax to insurance, here is how you can get it

Financial freedom is not something that will happen overnight, but it is very much possible for everyone. Even if you currently think it won’t happen, it definitely can - all it takes is a bit of discipline and a lot of patience.

Financial freedom, from the technical perspective, is a level when you have enough money to do whatever you want, within reasonable limits, for yourself and your family. Photo: Pixabay

Financial freedom is something that everyone wants but very few manage to get. When it comes to the Indian context, the ratio goes down further. Here, in India, a majority people have experienced or have to face an unexpected financial emergency that can be due to hospitalization of a family member, house repair, or some other emergency. This happens due to the bad financial planning or lack of financial freedom. What makes it worse is that this comes at a time when the common man is already facing the heat of having to make regular bill payments namely insurance premium, credit card, etc. If we had ensured financial freedom for ourselves, then that bill could have been less worrisome and we could have easily moved on from such financial emergencies.

But, here one must know what financial freedom actually means? Expert opinion suggests smart investments like insurance, mutual funds, SIP, equity, bonds to saving the income tax when your income increases are all important factors that a person must keep in mind while making his or her financial freedom plan.

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Speaking on the various ways that can help a person attain financial freedom, Rahul Jain – Head of Personal Wealth Advisory, Edelweiss Wealth Management told Zee Business online, "Depending on your wants this is easily possible. Several people do appear to dream of the day when they can retire from work and start doing anything they desire. They imagine about a period when they don’t have any bills to pay for, a tremendous amount of profit in the bank, and manage to travel the entire world, eating in the very best places, residing in the fanciest resorts, in addition to seeing the world’s incredibly stunning sites. Who wouldn’t wish to be free of money worries? There’s an old saying that money can’t buy happiness. Possibly so, but irrespective of how true that is, it’s equally evident that having money can get rid of lots of problems as well as make life a whole lot easier."

Jain of Edelweiss further added, "I believe that the secret to getting financially ahead in life is to plan for all your major expenditure. It might sound a little-to-much-planning-to-do on your end, but trust me it will get you well ahead in life. Therefore, I will list out some of the major areas where proper planning will help you move towards financial freedom."

Financial Emergency

The very first major in any of the smart financial planning is to anticipate for a worst financial emergency and structure a plan keeping that in mind. Here one can count for any kind of major or minor financial emergency - from the car or house repair to a medical expense or a surprise bill. Do so will always make more sense, than taking a last-minute loan or putting it on a credit card where you end up paying a lot more interest on it.

Vacations/Special Occasions

Festivities and occasions such as birthdays and anniversaries sneak up every year. Also, you might want to take a trip to your favorite/dream destination to break the monotony of your daily life. Hence, by saving up you can plan out your holidays as you want and purchase the gifts you want for those special moments, without being tied down by your monetary constraints.

Health Requirements

People tend to forget or underestimate how much it costs to stay healthy. The cost of health insurance is rising, and unfortunately, there isn’t much you can do. Make sure your budget annually and expect increased costs. Again, investing in your health and saving today means you will save yourself from having to spend extra money when a health issue arises.

"I am certain if you take care of these aspects you will move towards a more fulfilling life. Hence choose smartly," concluded Rahul Jain of Edelweiss Wealth Management.

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