Financial
Assessment
You can determine whether your current spending is in accordance with your retirement corpus requirement with the aid of our Financial Freedom Calculator.
What Is Financial Freedom?
Even in retirement, everyone aspires to have sufficient funds to meet their daily needs. While some may choose to retire early to follow their passion, others may just want a steady source of income to cover their living needs as they age. Living a luxury lifestyle may be a financial goal for some, but for others, paying off debt and being self-sufficient is sufficient.
To put it simply, financial freedom is the ability to maintain a reasonable standard of living even after your regular source of income ceases to exist. It implies that when your paycheck ceases, you won’t have to worry about how you’re going to pay for bills, electricity, groceries, etc. Careful financial planning is essential for achieving actual financial freedom.
How Can You Become Financially Free?
- Diversify Your Portfolio: Spread your investments across different asset classes such as real estate, stocks, mutual funds, and fixed deposits. This diversification helps mitigate risks and maximizes returns over the long term.
- You might encounter unanticipated events in life, such medical crises, job loss, etc. It is recommended to have a solid insurance policy as a fallback in case something goes wrong, as well as an emergency fund that is at least six months' worth of living expenses.
- Your money may not yield respectable returns if you keep it inactive in a bank savings account, and inflation may reduce its purchase power. In order to ensure that your wealth increases over time, it is crucial that you invest in the mutual fund plan that best fits your goals, duration, and risk tolerance.
