Jay was an 18-year old guy, who had just opened the first Cafe.His spouse had just stopped working due to the fact that they had conceived their first child.Just after everything looked perfect to him, a deadly disease called COVID was averted and created havoc in his blissful land.Suddenly business fell to a new low. There were barely any customers or orders, but it was an otherwise a thriving area, something that was not thought of off.The revenue dropped to almost nothing but the debts weren’t. There was still the need the cost of paying rent and EMI for the credit that he used to establish his cafe etc.Having none of his savings and no an additional source of income, it aggravated the situation, however his father came to save him and assisted Jay pay off the debt and make it through the difficult year. In the last year, many were in the position of Jay however they weren’t so fortunate to have someone to help them.The outbreak has really caused the need to be financially secure.
Financial independence can be described as being able to earn enough money to cover expenses of living throughout your life, without being employed and dependent upon others.But in actuality, it may refer to various things to different people , but with the basic concept that it’s a condition that allows one to afford the most basic necessities without being dependent on others at all times of life.It’s an era in which the money that you’ve earned, works for you to pay an annual annuity each month.”But why is this important?” many may ask.The motives are numerous, but among them:
The older generation had the village system, which provided an illusion of emotional and financial security and every member would be there to help one another in the need, but this system was destroyed and the family unit system crumbled.Now with single family units being the norm, each family member is to take care of himself, and this creates imbalances in the financial system as well as the emotional and social Systems.Stability that was once the foundation of the system is no longer there, and the demand for early financial planning to satisfy the essential as well as aspirational demands of every person should be considered early by setting goals.
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Today’s loan is readily available for everything from personal / vehicleand travel loans, etc. However, there’s no loan for the duration of retirement.Life expectancy is rising, and the time to earn a decent income over the life of a person has decreased considerably.The new standard is to retirement at the age of 50 and continue to live until at least 90.Also,unlike the past, life begins at 50 , costs have increased as a result of travel in pursuit of one’s goals/interests, or medical bills follow.You have to save enough money for an enjoyable post-retirement phase.
It is commonly believed that someone that is secure financially work better, grows faster and is more successful in his or her career. He is also more relaxed and free of stress because the drive to work is not derived from need but from the choice of.
Financial independence can be attained by implementing good financial habits and effectively planning and investing.The best time to begin financial planning is the time you provide the money in your pocket to your child. When our society is geared towards instant gratification. We must teach our children that delaying the gratification will allow them to relish the anticipation of a bigger reward as they wait and work for it. This will help to instill self-control, dedication and self discipline earlier which makes the children better individuals and responsible financially Investors.As they say, It is best to start early and invest to reap.
Beginning early lets investors reap the benefits of compounding returns. The value of money is increased over time, and with just a tiny amount of money, you could build a huge corpus.Patience discipline, discipline, and a willingness to stick to your objectives are the traits that are required together with a earlier beginning to build wealth, and to achieve true happiness and secure freedom that doesn’t be shattered by an unusual event such as the spread of a pandemic.
You’ve celebrated the nation’s independence many times before but when are going to commemorate the day that marks the beginning of your financially secure future?