2 mistakes to avoid if you want achieve Financial Freedom
We all make mistakes when we are young. This is generally due to lack of knowledge and lack of proper guidance. The smartest way to achieve Financial Freedom is to avoid mistakes.
The biggest misbelief we have in our mind is that Financial Planning is for rich people only. This leads to the biggest mistake an individual can make, i.e. skipping the process of financial planning.
_________________“If you Fail to Plan, you Plan to Fail”_________________
In this blog, we will discuss some mistakes we must avoid to achieve Financial Freedom:
- Afraid of Investing
It is not possible to create Financial Freedom if you are afraid of investing. One may feel safe to put their money in the bank FDs, but the money put in the banks is losing its power day by day due to the inflation.
There is no deny to the fact that, there are certain amount of risks associated with investing in equities. But the risks of not investing are even greater.
After all, we all have heard the famous dialogue:
______________________“RISK HAI TO ISHQ HAI”______________________
2. Not Starting Early
When we are in our early 20s, we think we do not have enough money to invest. By investing at an early stage of life, we learn the disciplined approach to investment. Young age is not a barricade to making an investment. The little amount we invest today will definitely put more money in our bucket.
Let us understand with the help of a simple example.
Mayank and Avinash are friends. Mayank is 25 years old and starts investing amount of INR 5000 per month through SIP in mutual funds.
On the other hand, Avinash who is 30 years old also starts the same SIP with Mayank. They both want to keep investing till they retire at 60 years. Assuming the average return of 12% each year when they both turn 60, Mayank’s accumulated wealth would be INR 3.24 crores and Avinash’s amount will be INR 1.76 crores. So, just investing 5 years earlier than Avinash, Mayank will get INR 1.48 crores more.
Doesn't it sound fascinating!
Start investing at an early stage of your life and you will have the world most scarce resource sitting right on your back, i.e. “TIME.”
Real Wealth is not about Money, and it’s true that Money does not buy happiness, it buys you Freedom.
- Freedom to not to work in the environment which is toxic.
- Freedom to spend time with your loved ones the way you want.
- Freedom to not worrying about others claiming your time and energy.