One needs to plan your income and investment plans well in advance to lead to financially independent life. Youth nowadays really need to realize the rising standards and the need of time to invest before it gets too late. This stage only comes if you have no liabilities and using your assets you can spend a satisfying lifestyle without working. It is a step by step promotional ladder which a person climbs to reach a happy life.
You are well paid, well off, have a good lifestyle. But can you afford to stop working? If your answer is ‘No’, then you are just financially stable — as long as you get your monthly cheque – but far from being financially independent. You’re also not alone — a large number of people retire without being financially independent.
Financial independence is a state where you are free from all liabilities and have created sufficient wealth that can generate a constant stream of income that allows you to maintain your lifestyle without having to work them.
There are six steps to be followed to achieve a financially independent stage. Firstly, plan your income, know your expenses and learn to invest, plan your future expenses, gain life insurance and write a will. Success is achieved if the future is secure financially as well as mentally. One should try investing in homes only if you save even after paying your EMIs. Investing right from the age of 25 can really help you plan a better future.