Skip to content

Financial Independence Can Be Achieved By Following Good Financial Habits

  • by

Jay was an 18-year old guy, who had just opened his very first Cafe.His partner had stopped working following the birth of their first child.Just when everything seemed to be perfect to him, a deadly disease called COVID hit and caused chaos in his blissful land.Suddenly business fell to a new low. There were no 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 did not. He was still required the cost of paying rent and EMI of the loans taken to start the café, etc.Having none of his savings and no another source of income aggravated the situation, however his father came to help him and helped Jay to pay his debts and to get through the challenging year. In the last year, numerous people were in the position of Jay but were not so fortunate to have someone to help them.The outbreak has really made it necessary to be financially self-sufficient.

View this FIRE blog for more stories like this.

Financial independence is defined as being able to earn enough money to cover your living expenses for the remainder of the time without being employed and dependent upon others.But in actuality, it may refer to various things for different people but it has the same basic idea 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 age that the money you’ve put into it, is used to create an annuity every month.”But what is the significance of this?” many may ask.The possibilities are endless, among them:

The previous generation was a part of the village system, which provided the feeling of security in the financial and emotional aspects and everyone would assist each other in times of need. However, this system fell apart and the system of joint families crumbled.Now with single families becoming the norm, everyone has to take care of himself, and this creates imbalances in the financial and the social and emotional Systems.Stability that was once the foundation has gone away, which is why the requirement for early financial planning to meet the fundamental as well as aspirational demands of everyone should be considered early and based on goal setting.

Today’s loan is readily available for anything – personal, vehicleand travel loans, etc. However, there’s no loan for the duration of retirement.Life expectancy is growing, while the time to earn a decent income over the life of a person has diminished considerably.The new standard is to retirement at the age of 50 and remain in at least 90.Also,unlike the past, life begins at 50 , costs have increased through vacations or hobbies, fulfilling one’s dreams 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 performs better, grows faster and is more successful in their career. They also live a life that is more relaxed and free of stress because their motivation to work comes not from necessity , but rather from a desire to do so.

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 offer 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 more rewards as they wait and work for it. This helps in establishing self-control, dedication and self discipline earlier and makes them better people 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. value of money grows over time. With a modest amount of money, you could make a large corpus.Patience and discipline, as well as a determination to achieve your goals are the qualities that you must have in addition to a quicker start to accumulate wealth and attain true happiness and secure freedom that doesn’t lose its value due to an extraordinary event, like an epidemic.

You’ve celebrated your country’s independence many times but when are going to mark the day to mark the start of your financial independence?