Everyone living on the earth needs money to survive. In this process some earns abundantly, while some struggles to survive; Do you know the reason? Lack of Financial Freedom
Each Person has their own view on financial freedom; Some say to live within their means while some say not having debts.
Whatever the opinion may be, Financial Freedom has became an essential part of human relations. As said by Karl Marx-” All Human Relations are Economic Relations” without wealth, no relation would survive in this world.
You have to pass these steps to prove that you are financially free. They are-
- Always having Liquid Cash– At any point of time, You should not ran out of money and you should maintain liquid cash to meet your emergencies. If you are struggling for emergency needs, you are not financially free.
- Future Financial Planning-You should be clear on your future needs and the money requirement for your future. You should be future ready to face any consequences linked with money matters, then only you would be financially free
- Maintaining Emergency Fund– Maintaining 3 to 6 months of your living expenses would be essential to face any cash crunch. Emergency Fund should be given first priority than any other expenses
- Having Adequate Life and Health Insurance– There is a saying- “Insurance First, Investments Next”. But many neglect insurance that they were too young and they don’t need insurance at the current stage. But They prefer to do investments! What they are forgetting is- “If they are not covered with life and health insurance, all their investments would be evaporated for medical expenses, Their family will struggle to survive if the breadwinner is lost! Don’t bring that ugly situation to your family.
- Not Struggling To Survive at the end of the month– If you are struggling to survive at the month end, you are not said to be financiall free. Financial Freedom includes having sufficient cash in hand or even in worst cases, you are able to liquidate your investments at any point of time. If you are not in either of the two positions, you are not financially secure
- Making Money Work For You– We all work for money! But how many of you are making your money works for you?Surprised? We all have income source, instead of spending all the money on unnecessary things, if you “Invest” your income and create “Passive Income”, then that 2nd source of income(Passive Income)would take care of you throughout your life. Creating Passive Income is a must and should to be financially free
Though it is difficult to survive in this highly inflationary country(India), one must be ready to meet future contingencies then only you are said to be financially independent.