Jay was just a small guy, who was just about to open the first Cafe.His spouse had just stopped working following the birth of their first child.Just when everything seemed to be perfect to him, a deadly disease called COVID was averted and created havoc in his idyllic land.Suddenly business fell to a record low. There were barely any customers or orders in the otherwise, it was a bustling location, which was not thought of off.The revenue dropped to almost nothing however the obligations did not. There was still the need the cost of paying rent and EMI of the loans taken to start his cafe etc.Having none of his savings and no an additional source of income, it aggravated the situation, however his father came to save him and assisted Jay pay off the debt and to get through the challenging year. Over the past year, many were in the same position as Jay but were not as fortunate to have someone helping them.The epidemic has caused the need to be financially secure.
Financial independence can be described as having enough money to cover expenses of living throughout your life, without the need to work and dependent upon others.But in actuality, it may be different to different people , but with the basic concept that it’s a place in which one can pay for at minimum the essential necessities, without being dependent on others at all times of life.It’s an era that the money you’ve put into it, is used to pay an annual annuity each month.”But what is the significance of this?” many may ask.The possibilities are endless, one of them being:
The previous generation had the village system that gave the feeling of security in the financial and emotional aspects and everyone would assist each other in times of the need, but this system was destroyed and the family unit system crumbled.Now with single families becoming the norm, each family member is to manage their own affairs, which causes imbalance in the financial and the social and emotional Systems.Stability which was the basis has gone away, which is why the requirement for early financial planning to meet the fundamental and aspirational requirements of everyone must be planned in advance and based on goal setting.
Today , loans are available for everything from personal / vehicleor travel loans, but there’s no loan available to people who are living beyond retirement.Life expectancy is growing, while the earning capacity of the life of a person has diminished considerably.The new standard is to retirement at the age of 50 and continue to live until 90. 90.Also,unlike the past, life begins at 50 , costs have increased through vacations in pursuit of one’s goals/interests, or medical bills follow.You require enough savings to ensure an easy post retirement period.
It is generally believed that someone that is secure financially performs better, grows faster and is more successful in their career. They also live a life that is at peace and without stress since the drive to work is not derived out of necessity , but rather from a desire to do so.
Financial independence can be attained by implementing good financial habits and making the right decisions when planning and investing.The best time to begin financial planning is the time you provide the money in your pocket to your child. When the world of today is all about instant gratification, we must show them that delaying pleasure allows them to appreciate the anticipation of more rewards as they wait and work for it. This helps in establishing self-control, dedication and self discipline earlier in life and makes them better people and responsible financially Investors.As they say: It is best to start early and invest to reap.
The earlier you start, the better chance investors will gain the advantage of compounding returns. The value of money grows over time, and with just a tiny amount of money, you can build a huge corpus.Patience and discipline, as well as a determination to stick to your objectives are the traits that are required together with a earlier beginning to build wealth, and to achieve true happiness and secure independence that won’t be shattered by an unusual event such as an epidemic.
Find out more on our financial independence retire early blog.
You’ve celebrated your country’s independence many times before but when are going to commemorate the day to mark the start of your financially secure future?