1. Investing is less about the actual investment and more about the investor, and investment planning towards financial freedom follows suit.
2. Everyone likes one's lifetime to follow a certain pattern - education, work, marriage, home, children, their education, their marriage, and one's eventual retirement - without any unpleasantness, so financial life should also be planned in a similar manner to become really free.
3. As a starting salary doesn't leave enough room for savings and investments, with newer lifestyles and social consumption pressure as bottlenecks, the two most common financial crises that really awaken young earners is educational loans and credit card debts.
4. While the first is a good debt worth indulging in, the latter is the single biggest financial poison that destroys young people's finances.
5. Since there is not a single investment which can take care of credit card debt interest, it must be paid off every month totally before investing money in anything else.
6. Conversely, any investment must be liquidated to pay off the entire credit card balance, instead of rolling it over, to avoid a perennial debt trap.
7. Thereafter, a young person aspiring for financial freedom must buy direct online term insurance and health covers, although both are optional, as necessary low-cost investment tools which help to avoid distraction and divergence of hard-earned money elsewhere due to sheer ignorance and innocence.
8. Once these are in place, the young earner should build a realistic contingency fund of 6-8 months household expenses, which is genuinely accessible at any time, by being a combination of actual cash and a savings bank balance which can be withdrawn by a debit card, for meeting emergencies.
9. Only thereafter should the young earner begin his investment journey towards financial freedom by choosing good mutual funds (starting with balanced funds) and investing in them through monthly Systematic Investment Plans, earmarking them for each of his life's goals .
10. In this way, the young earner will definitely remain financially free by avoiding costly debts and matching the type of investments to his goals.
2. Everyone likes one's lifetime to follow a certain pattern - education, work, marriage, home, children, their education, their marriage, and one's eventual retirement - without any unpleasantness, so financial life should also be planned in a similar manner to become really free.
3. As a starting salary doesn't leave enough room for savings and investments, with newer lifestyles and social consumption pressure as bottlenecks, the two most common financial crises that really awaken young earners is educational loans and credit card debts.
4. While the first is a good debt worth indulging in, the latter is the single biggest financial poison that destroys young people's finances.
5. Since there is not a single investment which can take care of credit card debt interest, it must be paid off every month totally before investing money in anything else.
6. Conversely, any investment must be liquidated to pay off the entire credit card balance, instead of rolling it over, to avoid a perennial debt trap.
7. Thereafter, a young person aspiring for financial freedom must buy direct online term insurance and health covers, although both are optional, as necessary low-cost investment tools which help to avoid distraction and divergence of hard-earned money elsewhere due to sheer ignorance and innocence.
8. Once these are in place, the young earner should build a realistic contingency fund of 6-8 months household expenses, which is genuinely accessible at any time, by being a combination of actual cash and a savings bank balance which can be withdrawn by a debit card, for meeting emergencies.
9. Only thereafter should the young earner begin his investment journey towards financial freedom by choosing good mutual funds (starting with balanced funds) and investing in them through monthly Systematic Investment Plans, earmarking them for each of his life's goals .
10. In this way, the young earner will definitely remain financially free by avoiding costly debts and matching the type of investments to his goals.