Financial independence is something that each one of us deserves and must strive for it. To me, financial independence implies matching earnings and expenses with some committed savings on a regular basis, to achieve self-set goals. The process requires strategic planning and determination.
Why Financial Independence?
1. Brings self-confidence and self-respect: There is a popular saying that money makes the mare go. Money may not be the ultimate goal, but without adequate funds, life is not easy for anyone. If one is able to plan, save and invest for future needs, one will not need to depend on anyone else. You will be able to meet some self-set goals and dreams.
2. Social security: A definite financial resource in one’s kitty may prove helpful to tide over emergencies. Start with whatever little you may have; it will grow with time. Having required funds will help meet any unexpected expenses, or even help near and dear ones in need.
How To Go About It?
Saving as a matter of habit: It is imperative to save, however little it may be. The earlier you start, the better. Saving and investing appropriately helps meet regularly as well as sudden expenses. But it goes a step further; you can afford a reasonable post-retirement life.
No loan, no liability: The best thing under normal circumstances is to avoid any type of loan or a long-term liability, to the extent possible. However, in present times, because of the easy availability of loans aided by EMI, it is easy to get loans. Therefore, take a loan but in a disciplined manner. Taking a loan for things that are not essential, should be avoided. Similarly, with credit cards, balanced usage ensures that you enjoy the benefits without falling into debt. Used wisely, these products can accentuate one’s savings.
No idle money: Except an emergency fund, all available surplus money should be channelised into desired avenues, say, mutual funds, Public Provident Fund (PPF), equities, gold, fixed deposits, etc. Money should not remain idle.
Small can become big: Often, we discard or neglect saving, saying our saving is too small to plan with. But small amounts can become a big resource. So, don’t wait; just start. Channelise your savings on a regular basis with whatever little available amount.
Ensuring Financial Independence For Homemakers
Many people, including homemakers, will ask how this is possible for a person who does not have an assured earning. It is not only possible but is also one’s right.
Non-earning homemakers get funds for household expenses, some pocket money and gifts from family or friends. All surplus funds, without affecting …….