Freedom of a nation underlines its sovereignty – in simple words its authority to govern itself. While the political freedom bestows many privileges on its citizen, one needs financial freedom to make the most of them.
And the tough part is – it does not come free, one has to achieve it for himself. Especially when the world is changing at a fast pace, it becomes imperative to work harder towards achieving the goal of financial freedom.
In the last decade of the 20th century, India adopted liberalization and things changed for most of us. While it opened gates to opportunities, it also exposed us to multiple challenges. The defined benefit pension schemes were scrapped and market linked defined contribution pension was introduced even in public sector.
Archaic labour laws started their journey from rigidity to flexibility, which also meant job security could be achieved only by constant up-gradation of skills and relinquishing laid-back attitude and not by some birth-right. State sponsored saving schemes offering assured double digit returns became a history. And market linked savings options became the order of the day.
To add to the situation, Indian families became nuclear, which deprived the retiring lot of the age-old joint family system. That makes all of us consider two scenarios – paying for one’s lifestyle when he is not working and ensuring at least the same lifestyle for one’s family even in his absence.
Who does not want to live a life of comfort when he retires? All of us want access to the best healthcare services available. Each of us wants to offer the best education to our generation-next. And all these come with a price tag. How are you going to pay for these? You cannot look for any external support. It has to come from you.
The only possible way out is – right steps taken in the direction of financial freedom when you are working. As one realizes the need to work towards his financial freedom, it is the right time to make a financial plan for himself- identify goals, prepare an investment plan, buy right insurance products and stick to your plan. The process adherence ensures that you reach your ultimate goal – financial freedom.
On the 69th Independence Day, it is the time to swear to achieve financial freedom.