Freedom is….being financially independent
For most of our working lives, we strive hard to earn, save, and invest money to achieve our financial goals and be free from any worries. With a structured approach and a comprehensive investment plan, one can achieve true freedom of being financially independent early without having to work until the golden years of your life. In this article, we will talk about how you can achieve true freedom by 40 by being financially independent.
What is financial independence?
Financial freedom is not about being rich with an undue amount of money. It is about having enough to help you manage your living expenses so that you can spend your time doing things you like rather than doing things just to earn money. This needs a lot of preparation. Here are some tips to help you achieve freedom and become financially independent.
01: Free yourself of debt
Debt is the biggest roadblock to financial independence. Depending on the rate of interest, they can impede your savings and investments and delay achieving financial independence. While some loans like home loans and education loans can take time to be cleared, you must focus on clearing as many loans as you can to avoid leaking your hard-earned money to interest on loans.
02: Prepare for exigencies
One thing that usually derails even the best investment plans is an emergency. This can be medical or non-medical in nature. Hence, make sure that you create an emergency fund that can help you manage such unseen emergencies with ease. Without one, you will have to dip into your savings and investments during emergencies.
Usually, the recommended size of the emergency fund is around three to six months of monthly expenses. Make sure that before you start investing, you create an emergency fund based on your needs.
03: Start investing early with a strategic plan
With loans and emergencies handled, you can start working on creating an investment plan based on your financial goals and needs. There are many investment instruments to choose from with varying levels of risks and potential returns. You need to ensure that you choose the right instruments by keeping these fundamental aspects in mind:
1. Financial goals
2. Risk tolerance
3. Investment horizon
When you decide to start investing, you can pick stocks, mutual funds, bonds, gold, real estate, or any other asset that offers returns over time. Once you factor in your financial goals and risk tolerance, you can create a shortlist to pick investments that can work in sync with your financial plan.
If you want to achieve financial independence early, then it is important to start investing as early in life as possible. Even a small amount invested at a younger age can turn into a large sum due to the power of compounding. Another important investment that you should consider is real estate.
Importance of investing in real estate for financial freedom
For decades, real estate has been known to be an asset that can truly help with wealth generation. When done correctly, real estate investments hold the key to financial freedom as they are one of the most profitable options in investments. Here are some reasons that make real estate investments ideal for wealth generation and achieving financial freedom:
- Real estate properties tend to increase in price over the long term. While there might be ups and downs, if you hold on to the property for long enough, you can be assured of good returns. Also, if you research and analyse the locality and builder carefully, then you can spot a great investment opportunity and earn higher returns.
- Renting a property is easy depending on its location and allows you to receive regular monthly payments as rent. If the rental income is sizeable, then you can earn enough to manage your monthly expenses with ease.
- When you invest in stocks or mutual funds, the returns are based on the perception of investors and other macroeconomic factors. These influencing factors are not in your control. However, when you invest in a house, you can renovate it and work on the interiors to boost its value. This is a unique feature of real estate investments where people with a knack for developing homes can buy a property and work on it to increase its value. This can help generate amazing returns.
Talking about real estate, it is important to research the property carefully before buying. If you are looking for regular income, then make sure that you buy a house that is well-connected and closer to business hubs and educational institutions apart from having easy access to highways, train or metro stations, and markets. If you feel that certain areas will experience an increase in demand over time due to certain reasons, then you can buy a property when the rates are lower and sell it as the demand increases.
BramhaCorp offers a range of options to help you commence your real estate investment journey by offering residential and commercial properties that are in high demand among tenants and potential homebuyers. Hence, investing in a BramhaCorp project can help you achieve your financial goals with ease. You can choose from a range of our luxury residential properties like The COLLECTION BY BRAMHACORP and BRAMHACORP SMART and state-of-the-art commercial properties like BRAMHACORP BUSINESS PARK and BOULEVARD TOWERS BY BRAMHACORP. You can also opt for our newly-released pre-leased studio apartments at BRAMHACORP TOWNHOUSE.