We list the 7 vital ingredients required to ensure financial independence in the present and for the future. Every person wishes to be financially secure – but only a few are able to crack the code on the concept of financial independence’. We reveal the keys you need to become financially independent:
1. A good bank balance.
You’ve often heard the adage, ‘Money doesn’t buy happiness’ but you must agree that having enough money in the bank can ease many problems. A financially sound individual takes care to explore good banking services and open a savings account with the best banks in India.
A good Indian bank has a range of savings account to choose from, with good rates of interest and the best Internet banking tools. A hefty bank balance does a lot to mitigate future financial emergencies.
2. A home of their own.
Another important factor in the life of a financially independent individual is a home of their own. Such an individual understands the value of investing in reality, as opposed to living in rental accommodation for years.
They may borrow a housing loan from a good bank in India to finalize the purchase. They realize that property is an appreciating asset and can be monetized in times of need.
3. Buying A Car.
A car improves your mobility and ceases your dependence on (often unreliable) public transport. A financially savvy person doesn’t wait for buses or argue over surge pricing with private cabbies – they simply drive off in their own car! A car is a good asset to add to your financial portfolio.
4. Bright job prospects.
Young, upwardly mobile, ambitious…if this description fits you, then you are certainly on your way to a bright career. Talent and ambition aside, it takes gumption to succeed in the workplace, and individuals like yourself realize that working smart is more valuable than working hard. The brighter your prospects, the more moolah you rake in!
5. Investments for long-term
The path to financial independence does not come with just a well-paying job. You must be able to figure out a way to make your money work for you even when it is idle. The best way to create wealth is to invest in market-linked investments that build your portfolio over time.
6. A Pure Term Insurance Plan
Apart from creating wealth, safeguarding your life against future eventualities and making sure that your loved ones are protected in your absence, is also the hallmark of a fiscally-responsible individual. Buying insurance from a bank in India is a good way to protect your finances from future financial upheaval. Life, vehicle and health insurance are mandatory, apart from home and asset insurance.
7. A retirement fund.
Retirement might seem like a long way off right now, but it is never too soon to start saving towards it. Post-retirement, you will not have a regular income to sustain your daily expenses. Check the different banking services offering retirement income products (like pension funds) that can provide a regular income once you retire.