It has been a while since I wrote. The year is coming to an end and we are anxiously waiting for the start of a New Year.
It is time to reflect on our financial freedom journey.
What are we trying to achieve?
The concept of financial freedom holds different meanings for different individuals:
- Some want to wake up at a time of their choosing
- Others yearn for leisurely moments
- Some do not want to report to a boss or they want to become the boss of their own
- Some want to slow the hectic pace of life and want to savour the moment
- Some believe that they have not been able to spend quality time with their family and would like to do so given a chance
- Others would like to pursue their passion
The bottom line is that everybody wants to get to a stage where they can enjoy their life without any constraints.
Purpose of Journey
People use varying approaches to navigate through the journey:
- Some prefer to go with the flow hoping that everything will fall into place on its own
- Others are unaware of the existence of a structured approach to financial planning and freedom
- Some, although aware, implement financial planning only on an ad hoc basis
- The last group of people are passionate about financial planning and they may go overboard to secure financial freedom
Challenges in the Journey
The journey is fraught with multiple challenges and risks which can make financial planning difficult. Some of the basic concerns during the journey are:
- Are we saving enough?
- Is our investment deployed optimally?
- Are we overspending?
- Would our money last our lifetime?
- My health is taking a toll because of high work pressure and family financial commitments. Should I go slow?
- We are living a thrifty lifestyle. Would our Life experience post financial freedom compensate for today’s sacrifices?
- Would our financial freedom get delayed?
- Would we ever be able to achieve financial freedom?
Key to Success
Looking at the challenges, it may appear that getting financial Freedom is difficult and you have to be lucky to get it right. But that is not true. A reasonable informed approach and follow through is all you need to get closer to financial freedom.
The following activities can aid in securing financial freedom early:
- Start Early
- Be hungry to gain Financial Knowledge
- Create Goal based Financing Plan
- Save money
- Take moderate risk
- Invest as per the plan
- Be vigilant and monitor your investments
- Balance between Savings and Life Experiences
The journey to Financial Freedom may look difficult but with proper planning and focus one can achieve financial freedom in a timely fashion.
Wishing you all a very happy New Year 2024!
Disclaimer
The writer is a SEBI Registered Adviser and Founder of FinMyn (https://finmyn.com). He provides Fee-Only Financial Planning and Investment Advisory services.
He has advised many clients in India, the US, the Middle East, Southeast Asia, Europe, and Australia.
To know more about him, click on https://finmyn.com/about/.