By Ankit Choudhary
Introduction
Financial freedom is not being RICH. Real
meaning of freedom is stage where a person
can live with a decent lifestyle without earning
a single money or without debt.
for example- Person X started a business at
the age of 20 and sold it at 30es at the price
of 10 MILLION dollar. His\Her expense (rent
lifestyle expense,ets) are 10k every month.
Anula expense of x is 120k. Average life of
person is 70 years. His\Her total expense in whole
life 6MILLION dollars. He\She achieved financial
independence.
(note: Inflation rate is beat by normal interest rate
by banks)
Steps of achieving financial freedom
Step:1
Write down all income and expense. Find unwanted expenses and
reduce them from now. Increase your income by improving skill
day by day. Learn from you-tube for eg-leadership, communication
skill, etc.
Step: 2
Debt management
Write all your debt from decanding to ascending ( low-high) and pay lowest
debt first and then the higher by this technique you will get confidence on
yourself. And you will accidently try to pay automatically all your debts
in efficient manner.
Step:3
Emergency fund
Made 3-6 mouths of emergency fund for the worth situation like- covid19,
jodless, etc. To manage the family and household expenses emergency fund
is better option than razing debt.
Step: 4
Investment
50:30:20- According to my experience this rule is best rule
1=50 % of saving should be invest in low risk investments
like-bank fixed deposits, real-estate, gold, etc
2=30% of saving should be invested in medium risk investments
like-stock market, crypto currency, etc
3=20% of saving should be invested in high risk investments
to get extremely high return like-startUP, small scale business
(at initial stage), etc