This Independence Day become financially independent, here's how
With proper financial planning, start saving as early as you can by investing a small amount every month in Systematic Investment Plan (SIPs) to earn robust returns at the time of maturity.
As India is celebrating 71st Independence Day today, it is time for every Indian to be "financially" independent.
You must be thinking that once you start earning, you are financially indpendent.
Financial independence, here means, is having sufficient funds to live your life without having to compromise on the quality of life. The first step for financial independence is to set goals, prioritise expenses, and save and invest intelligently.
To have that independence, you need sound "financial planning" and not just increasing earnings.
When it comes to investing, start as early as you can. Your first car, your own house, a wedding, a honeymoon–keep your personal goals and life milestones in mind when you set your financial goals and plan your investments.
The simple way is investing into Systematic Investment Plan (SIPs). SIPs will develop a habit of keeping aside a certain amount every month which will reap robust returns after the maturity period.
While you are investing into Mutual Funds, do look for other financial instruments for investments. Like Public Provident Fund, Senior Citizen Saving Scheme, Employee Provident Fund, and others too give good returns over the years. This way, while you are meeting the short term goals, you can secure your retirement life.
"At the same time, make sure you are covered for any contingency so that your family remains protected no matter what. A personal health insurance and a term insurance are the bare minimum. Choose an instrument that can provide inflation-proof returns after tax," Adhil Shetty, CEO and Co-founder Bankbazaar.com said.
Investing, too, has become highly simplified over digital platforms. So, ensure you do your research, compare different available options and choose the right investment vehicle that suits your needs for the best returns.
So, this Independence Day, pledge to become financially independent and secure your future.