Financial freedom: An achievable task

The definition of financial freedom differs from person to person. But what sets an individual apart is the dedication and discipline he or she puts in to achieve the desired goals. Financial freedom can be achieved by saving and investing in a judicious mix of assets. If needed, don’t shy away from taking expert help. If planned with proper guidance, financial freedom is achievable. Financial freedom means having enough earnings, savings and investments to pay for one’s needs and wants and that of their dependents and not having to seek help from others. Though saving and investing will help in achieving financial freedom, there might be instances when an individual is forced to borrow. It is extremely important to be prudent while borrowing and ensure the repayment schedule does not hit any snag. It will help in escaping from falling into a debt trap. It will also help in keeping credit score in good shape and allow lowering cost of borrowing in future.

Money matters may seem to be a bit intimidating to even those who are well-versed in their professional fields. Those who succumb to various vices society is infested with are left to rue their mistakes later. An individual must ensure that all your financial goals are well funded. This is possible when there is a large enough corpus for each of your financial goals, which could be your child’s education, marriage or your own retirement years.

An individual should also review asset allocation at least once a year. The purpose is to rebalance your allocation and bring it back as per your plans. Rebalancing helps you book profit in an unemotional manner and invest in line with your asset allocation. However, being dispassionate about investments is easier said than done and it is always prudent to take help of experts rather than keep postponing changes in investment decisions or modification in investment strategy.