Sometimes we make finance too complex.
Here are 5 simple things you need to do to be financially free:
A thread...
Here are 5 simple things you need to do to be financially free:
A thread...
(1) Improve your earning potential, ALWAYS!
- If your salary grows by 100, but your expenses grow only by 20
- You are likely to be stress free (at least financially).
Even if you know 0 things about investing, just earning more solves a lot of issues.
- If your salary grows by 100, but your expenses grow only by 20
- You are likely to be stress free (at least financially).
Even if you know 0 things about investing, just earning more solves a lot of issues.
(2) Either increase earnings OR decrease spending
- If there is a period, where the earnings are not growing
- Try to cut discretionary spending.
Adopt curated minimalism [i.e be more thoughtful with your spending].
Curbing your lifestyle inflation solves some problems.
- If there is a period, where the earnings are not growing
- Try to cut discretionary spending.
Adopt curated minimalism [i.e be more thoughtful with your spending].
Curbing your lifestyle inflation solves some problems.
(3) If you don't know how to invest, still invest.
- The best possible options would be Mutual Funds/Smallcases/Index Funds.
- Inflation depletes your savings, if you don't invest.
To get started, do check out some of my free Smallcase list: lnkd.in
- The best possible options would be Mutual Funds/Smallcases/Index Funds.
- Inflation depletes your savings, if you don't invest.
To get started, do check out some of my free Smallcase list: lnkd.in
(4) Create a safety net:
- Have an emergency fund (usually 6x your monthly expenses; just do a FD with it)
- And, have Health and Life insurance.
- Also, don't buy the wrong insurance. I did that and paid very dearly.
- Have an emergency fund (usually 6x your monthly expenses; just do a FD with it)
- And, have Health and Life insurance.
- Also, don't buy the wrong insurance. I did that and paid very dearly.
(5) Live frugally. And, keep a large chunk of your money liquid.
- If you keep all your money tied up in illiquid assets (Eg. Real Estate)
- It can be disastrous.
At the time of emergency, you might be notionally rich but might not get access to ANY of your own money.
- If you keep all your money tied up in illiquid assets (Eg. Real Estate)
- It can be disastrous.
At the time of emergency, you might be notionally rich but might not get access to ANY of your own money.
(6) Summary: Being financially free is not complicated.
It is all about knowing the right things and actively pursuing them.
Liked the content? Do consider Retweeting the first tweet.
It is all about knowing the right things and actively pursuing them.
Liked the content? Do consider Retweeting the first tweet.
Loading suggestions...