Author:
Shubhankar Patil
Angular Developer
Financial freedom is the state of having enough savings and investments to live your desired
lifestyle without relying on a paycheck. Here’s a roadmap to achieve it
Define Your Reason
Understand what is financial freedom according to you. It can be anything like early
retirement, travelling the world or simply living debt-free for entire life.
Create a Budget
Understand where you spend your money
Allocate money: Follow the 50-30-20 rule where 50% goes for your day-to-day needs, 30% for your desires and 20% for saving & investments
Allocate money: Follow the 50-30-20 rule where 50% goes for your day-to-day needs, 30% for your desires and 20% for saving & investments
Manage Your Debts
Explore debt repayment strategies like the debt avalanche & debt snowball. Focus on paying off high-interest debt first.
Create an emergency fund
Aim for three-6 months of spending: This financial savings account will shield you from
sudden monetary shocks. Make sure that you can withdraw your emergency savings easily whenever needed.
Invest Consistently
The power of compound interest works in your favor if you invest early as possible.
Also while investing make sure that you investing money across different asset classes like
stocks, real estate, bonds, gold, etc.
Live Below Your Means
Avoid lifestyle inflation by resisting increase in your spending as your income grows. Focus on experiences that bring lasting values over possessions
Live Below Your Means
Avoid lifestyle inflation by resisting increase in your spending as your income grows. Focus on experiences that bring lasting values over possessions
Increase Your Income
Find other ways to earn extra income, such as freelancing or renting out assets.
Learn Finance
Train yourself by reading books, attending webinars about personal finance. Stay updated about market trends & financial knowledge.
Safeguard Your Assets
Insurance is essential for your health, auto, home, and life to protect your financial future. Financial freedom is a journey, not the destination. These steps will build solid foundation for
your financial future.
