5 Mantras to become Financially Independent
1. Start now:Your investing journey should ideally begin with your earnings journey. When you start early you have a longer investment time frame. This allows you to absorb intermittent losses and benefit from the power of compounding.
2. Create and stick to a budget: When you receive your income, break it up into various pockets. Allocate some money to meet essential expenses. Then, keep aside some money to save and invest. Now, with the money that is left, you can spend on non-essentials and luxuries.
3. Set SMART goals: Ensure that the goals you set are Specific, Measurable, Achievable, Realistic, and Timely. By doing this you will know exactly the amount of money that you need to save and the risk that you can take to achieve your goal.
4. Risk profile is more important than Facebook profile: When it comes to investing, never punch above your risk category. You have a unique risk profile which could be conservative, moderate, or aggressive. Ensure that the investments you make are aligned with your risk profile.
5. You can eat your cake and keep it too: Saving and investing don’t put a stop to your fun and expenses. Instead, if you budget properly and maintain discipline then you can create a good investment corpus and have enough money to meet your discretionary expenses.
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