6 Steps to Achieve Financial Independence

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India is gearing up to celebrate its 72nd Independence day with great aplomb. And why not? In all these years we have come a long way from being called a 3rd world country to now standing among the fastest developing nations of the world. Today, the cry for becoming independent has transcended into becoming more of self-dependent in recent times. How are we going to be self dependent? This is a million dollar question!
Well, in order to achieve the aforesaid status, the onus lies on we the people. It’s only when the people are self sufficient and self dependent, the country can rise to new soaring heights.

On this note, we have curated six pointers which when practiced by an individual, yields the warmth of becoming financially independent.

Inculcate the Saving Habit Now

Since childhood, we have seen elders stressing upon the importance of “saving”. We often fail to realise it’s gravity until we find ourselves cornered in a monetary fix. Adhering to savings, irrespective of the situations, is arguably the first pillar to remain financially relevant even in the times of inflation.

Define Your Financial Goals

It all begins with setting a target, and for that it is important to define your goals in the beginning itself. If you do not define your goals then you cannot actually start working towards achieving them. Goals can be anything, from buying your dream home, to funding your child’s education to taking your parents for a much celebrated world tour that you have always thought about. Check whether your savings are apt enough to fulfill these. If not, it means you need the power of loan to make these dreams a reality for you.

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Make a Cohesive Plan to Achieve Goals

Planning is the first step towards execution. If the goal is to buy a home, you must look to create a corpus to pay off the 10%-25% of the property value as home loan is financed to the extent of 75%-90%. Initiate the process by comparing the estimated returns on investments with the calculator online and see how much they are yielding you for a chosen period. You could find one or two or a combination of multiple investments helping you attain the coveted figure.

On the other hand, marriage brings a whole lot of emotions and one wants to ensure it’s a top-notch affair. But, in a bid to achieve so, the financial viability may go for a toss when not planned properly. The key is to ensure the D-Day remains the one to remember yet not becoming a burden to your finance. So, save by saying ‘No’ to unnecessary spends to save for the day.

Invest Now to Achieve Rewards Later

Investment can make your journey really smooth and you will slowly find yourself inching towards achieving your goal. Its always better to invest your money in places like FDs, PPFs, Mutual Funds etc rather than keeping it idle in your bank account. Remember that small investments made today can make your tomorrow hassle free to a great extent.

Choose The Right Investment

Choosing the right mode of investment is as important as investing your hard earned money. So, choose an investment nest that can weather the storm, heat and cold of market to help it grow in size and get it shielded at the same time. How can you do so?

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It requires a clear idea of the investment goals you are likely to achieve and the risks you can afford. Financial goals such as overseas study, marriage, home purchase would require investing in the power of equity to accumulate what’s required to make these a reality.

Get Free from Debt ASAP

Nobody likes to be under the debt for long. And so, the strategy to get relieved from the debt must begin now. As part of the strategy, keeping the money in a myriad of financial instruments such as mutual funds and fixed deposits would help prepay the usual long home loan much before it expires, yielding you tons of savings.

A credit card debt, on the other hand, must not blow out of proportion to give you sleepless nights with 30%-40% annual interest. So, pay on time and in full to negate the possibility of such tall interest taking out the chunk.

Personal Loan Interest Rates November 2018
Bajaj Finserv10.99% - 16.00%
Fullerton India14.00% - 33.00%
HDFC Bank11.25% - 21.50%
ICICI Bank10.99% - 18.40%
IndusInd Bank10.99% - 16.00%
Kotak Bank10.99% - 20.99%
RBL13.00% - 18.00%
Standard Chartered Bank12.00% - 17.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates November 2018
State Bank of India/SBI8.70% - 9.25%
HDFC8.80% - 9.70%
Bank of Baroda8.65% - 9.65%
LIC Housing8.70% - 9.05%
PNB Housing Finance9.00% - 13.00%
ICICI Bank9.00% - 9.25%
Axis Bank8.80% - 9.05%
Citibank9.00% - 9.85%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank8.90% - 8.75%
DHFL9.05% - 9.95%
Reliance Home Finance8.75% - 14.00%