Financial Freedom is a very long term and has different meanings for different individuals. So what does financial Freedom for an individual means? Well, for an individual, it would be the ability to decide without thinking about his or her finances. This is because the person is financially stable or has a sound financial backup. Financial Freedom means that the person has financially managed everything and is prepared for any expenses in the way. For example, the person who is not economically free will worry about the increasing cost and costs more than the person who is financially prepared for it. For a financially prepared person, such expenses are not a roadblock, but just a small step that he is well planned for. So how does one achieve financial Freedom? To be ready for any business expenses in the future, you will have to take a lot of steps today and have to improvise at the same time. Being financially free means that you have invested the money in the past in such a way that your future expenses are already covered and you do not have to worry about them anymore.
Financial Freedom can not only make you stress-free but is also good for your mental and physical health. Less stress of repaying your debt, satisfaction, and content that you have a good financial backup and are not short of money in a time of need. Less stress will also bring positive effects on the physical aspects of the body. Let’s have a look at some of the other good effect of Financial Freedom and how you can achieve it. Try to invest the money for future needs in Mutual Funds and market.
Invest for the future: The best way to gain financial independence is to invest the money right now for the predicted future needs. Once you are sure about all the expenses that will be there in the future at a specific time, start investing for them. For example, invest in a policy for the next 15 years to make sure you have enough money for your daughter’s education or spend for 20-25 years to have money for her marriage. These are just a few examples of how you can plan and invest the money for the future so that you do not need to empty your savings when the time comes. Try to invest in Mutual Funds or Stock Trading
Does not affect your decision making power: Financial Freedom’s most significant advantage is that you can make decisions freely and without being under stress. When you do not have a shortage of funds, you can select or decide on various options available such as choosing a career, buying a car, house, etc. Being short of finance limits your decision making power in every situation as you have to choose something that does not create more debt and pressure over you, instead of selecting the best option. Also, try taking fewer loans to decrease the debt on yourself.
Option to Retire Early: Planning financial stability and Freedom from an early or young age will help you to retire without thinking about finances. Not just that, you might have an option to retire at an old age and enjoy the benefits of your investments to the fullest.
Be better at financial Management: Once you get better at managing your finances, you can easily balance between your expenses and income. Starts budgeting your costs, which will help you save money from extra fees that you were unable to track before. The more you save from the costs, the more you should invest in the market. Once you are better at financial management, the saving starts to increase, and expenses begin to decrease. You can always take the help of an elder or a professional if you do not know about financial planning. Once you know how to do it, you will be able to plan your financial Freedom earlier in life. You can also try to avoid long term Loans to decrease debt and invest in policies like Mutual Funds.
Apart from these, there are also some worst things about financial Freedom that one needs to know about. Here are a few of them.
No funds for the present: Since financial Freedom needs one to invest in the future, there is also a downside to it. Saving a lot of money for the future will lead to fewer amounts with you in the present. Since an individual is focusing more on keeping for the investment schemes, one will have very less in hand amount to spend in the present. Therefore, you are compromising on the present to make your future better.
You need money to invest in the future: The problem with funding for the future is that you need money to invest in the future. If you have a lack of finances, planning for financial Freedom is next to impossible. This is because a small amount of money will only be sufficient to manage the expenses of the present. So, for a person who is reliable on monthly salaried income, can only invest a fixed small amount in Mutual funds as the other smaller amounts are his saving and repayment of loans. In this case, planning for financial Freedom seems to be very difficult.
Compromising on the present: Planning for the day is really important for any individual. However, this also means that he has to spend his entire resent earning and planning for it. The same scenario happens when a person is planning for financial Freedom in the future and is working hard to achieve it. One thing that a person ignores is the time in the present he is wasting without doing anything innovative. The only thing one does is to earn for the future.
There might be many other reasons, positive or negative about financial Freedom, but the truth is that it is an essential part of our life and our future needs it.