We can use money to build our future or to spend in the present. If we buy things today that we don’t need, then one day we may have to sell those things to protect ourselves. The money we earn has a purpose, it should be understood. So, manage your money wisely and link it with your life goals. One such goal is to achieve financial independence. Financially independent means Dignity and Security. In Simple word put, not being financially dependent on anyone else.
Many investors wish to retire before the age of retirement. A new movement named early retirement has been born, which means to be financially independent and retire early with a handsome money and well setteled life style. According to this rule, a person needs to save up to 25 times of his annual expenses.
After this, he can withdraw 5% every year and can meet his expenses with this money. But there are some problems with this thumb rule. Withdrawing 5% from the corpus may not work or may not be justified, as the returns and inflation absorption in the US / UK is different from that of India. Also, the time between when you retire and your death can lead to a lot of unforeseen events. Therefore, it is necessary to adjust this thumb rule according to your country and needs.
This is not an investment advice, but a framework that can help you understand how to start being financially independent. This framework helps us meet our retirement goals. The objective of investment is to accumulate enough money which can provide a sustainable income at the time of retirement. Therefore, it is important to find out where the retirement money will come from and also make sure that in addition to monthly expenses, it is also important to cover unexpected expenses.
Financially Independency is not only for Man it is also very important for women (It is very important for women to be financially self-reliant).I hope this article will usefull for you and our team will post financially independemcy benefits for women in next article
By www.yonoinformer.com
