RBI Issues Circular On Levying Unfair Interest Charges On Customers

People who spend their weekend shopping, posting their foreign tour candid on Instagrams, buying whatever they like and many more such habits are envied by many. The envy might be so desperate that people tend to adopt such lifestyle as their sole objective. It might not be a bad idea, until the support is taken from debt or ancestral money rather than self-help. The greatest myth in millennials or any aspiring individual is that financial freedom is only for the richest, thus if you want to achieve it then simply earn more money. However in reality the key to financial freedom is within ourselves and with some basic changes in our lifestyle it may be easily achievable.

Let us go through some of the practical instance of how one may achieve financial freedom and become rich without actually being rich.

Save first pay later: It is a kind of vaccination which will prevent your financial body from debt viruses. Whatever money you earn least 50% of it should go for your future and the rest for your liabilities and enjoyments. In normal circumstance, you enjoy first save later, wherein by the end of month there is hardly any money left with you for substantial savings.

Invest what you save: The value of money is depreciating, and cost of living is increasing. Something called as inflation is always unknowingly impacting our lifestyle and the worst part is that, there is nothing stopping it. The good news is that there is vaccination of this virus as well, however the quicker you act the better protected you are from it. The vaccination is none other than ‘compounding’, which is similar to snowball effect, which is small at the beginning but more than substantial at the end. Therefore keep investing and stay invested until your objectives are achieved.

Quit the unessential: If it isn’t essential, then why bother buying it. When we start with the save first pay later strategy, we practically create a budget for ourselves and thereby restrict our expenses to bare minimum. In this way we cut down on all the unnecessary expenses such as frequent restaurant visits or buying unnecessary stuff. By doing so we understand two things, one that savings are easily achievable and two is that you can live without the unnecessary stuff.

Cut down the debt evil: Not all debts are evil, however debts taken for expenditure rather than investment are damaging. Personal loans, credit card balances or unsecured loans with heavy interest are always alarming for your financial health. If they continue to exist in your life, it would be difficult for even the word finance to remain in it, let alone freedom. Therefore, avail debt for necessities such as house or car but not for personal expenses.

Don’t indulge in impulsive buying: Things are temporary but experience are perpetual, thus in your life prioritize experiences over buying gadgets or things. Experiencing lets you cherish the moment and mesmerizes your soul till eternity; On the contrary, materialism, might give you notional happiness, which might not last forever. What more if these things are lost or stolen, the pain is immeasurable. Therefore, instead of falling prey to impulsive buying of unnecessary stuff, opt for experiences that actually matters to you.

Wasn’t that hard? Was it. So you can begin your journey for financial freedom from above, however is it really a necessity? Often people become the prisoner of their own doing and then realize what if had we done this? Financial freedom is not just some jargon which every financial advisor might use to lure you into buying some investment plans, rather it actually is the source of your wellbeing. Following is a brief comparison of why financial freedom is so important:

Financial freedom not only makes you financially independent, but also makes your life full of memories to cherish. If above reasons are not sufficient for you to make financial freedom a necessity, then think about life as a precious gift. Life is too precious and short, to spoil it with debt and stress, so adopt financial freedom as a necessity and experience your true purpose. Because financial freedom is the food, clothing & shelter for your financial well-being.