Everyone is ready to be independent, especially when it comes to financial issues. Of course, everyone understands that to be financially independent at such a young age in life you need to work to earn money. Here, you'll learn the 6 Steps for Financially Independent Life.

6 Steps for Financially Independent Life

Overview

In this article we are going to justify however you'll live a financially independent life.
There square measure many straightforward steps that may assist you to remain financially independent and explore to grow a lot of.

Six Steps for Financially Independent Life

1. Purchase the House or Rent it

When you square measure young, everybody says that they'll purchase the house. therefore you're thinking that we should always purchase a house at AN early age? therefore, let’s see this with numbers-

Suppose, you buy a house, then:

• Purchase price – Rs. 1 crore
• Money from your pocket – Rs. 20 Lacs
• Loan from bank – Rs. 80 Lacs
• Bank EMI – Rs. 72,000/month for 240 months

On the other hand, if you rent the house, then:

• Rent of house – Rs. 15,000- 20,000
• Will save EMI – Rs. 72,000/month
• Monthly saving – Rs. 50,000- 52,000

If you save Rs. 50,000- 52,000 for 240 months, then you're able to earn a profit of approx. one.25 crores.

Today, individuals carry on ever-changing jobs and add totally different firms and when someday, begin their own business, so, there square measure several shifts within the phases. At a young age, if you may purchase a house, you may stuck and can not be able to take a call.

When you purchase a house at a young age, then each your capital and time can become a stress for you. It’s higher to explore at this age and buy the house later. create your 1st priority to measure close to your operating place instead of buying a house.

Also Read: Tips for Your Startup Success

2. Shared Economy

Taking the instance of olla and Uber, they need modified entirely the expertise of taxi services. antecedently catching a taxi, cab and car was terribly tough. you utilize to wave them and decision them however they didn’t hear, act with you, and charge higher costs.

All these things nonexistent by Uber and olla services. In India, today, if you're taking the value of automobile possession, it includes EMI, insurance, maintenance, depreciation, and driver (ola/uber encompasses a driver) price. If your automobile didn’t even move from the garage, then conjointly the value can come back to Rs. 40,000- 50,000 and a further gas price once the automobile is out from the garage.

Thus, in today’s economy, it's not a compulsion to stay the automobile instead you'll use transport and utilize the good thing about the shared economy. Don’t take any depreciation vehicle as a result of conjointly keeps on decreasing.

3. Power of Refurbished

If you would like to buy a automobile, then you'll purchase a second user automobile at 0.5 value.

Example:

1) Second-hand automobile

• If you buy a 4-5 year previous Honda town, that is running dead, then that very same automobile of Rs. twelve Lacs can price you simply Rs. 6 Lacs. If your budget is Rs. 12 Lacs, then you'll purchase AN Rs. twenty five Lacs automobile in Rs. 12 Lacs.
• Therefore, within the second-hand automobile, you get at depreciated price. this is often why Cars24 has become very hip as individuals gets cars at a cheaper price from them.

2) Refurbished portable computer

• A decent and new portable computer commonly comes at a value of Rs. 40,000- 50,000.
• Go online and check for refurbished laptops.
• Normally, online, you'll get a refurbished portable computer at a value of Rs. 12,000- 15,000 whose original price is Rs. 40,000- 50,000.

There is a great deal of saving, and you get the just about same factor at low price. you have got to ascertain however you'll cut back your price by refurbishing.

4. Power of Combination

Let’s perceive this with the assistance of SIP (systematic Investment Plan).
SIP means that investment done consistently. nobody will time and predict the market accurately.

Example:
Investment = Rs. twenty000/month for 20 years
Total Investment for twenty years = Rs. 30 Lacs

If this cash will increase by twelve-tone system solely and also the index number in our country is increasing by 18-20% then when twenty years, the higher than cash are Rs. 2 crores.

This is referred to as the facility of combination. So, you'll arrange your life properly through SIP and grow your cash. Get the profit and revel in the facility of cash each.

5. Never Borrow to Consume

In the US, everybody moves on Mastercard and loans. They purchase things nowadays from their future financial gain, that they need however not received. this is often fine within the USA as a result of the charge per unit within the USA is 2-3% and in Republic of India charge per unit is 16-18%. You borrow at 16-18% and consume it. No use from it.

So, don’t borrow for consumption, consume from your own cash while not borrowing. If you're borrowing, then strive that you just profit a lot of out of borrowing.

Example:
If you borrow Rs. one hundred and you have got to pay interest of Rs. 10, then your investment ought to be specified you get quite the interest you have got to pay from the investment done.

6. Learn the Ability

Learn any ability in your life so you'll begin the business of it.

Example:
If you're thinking that you'll learn digital promoting then learn it, begin the business of it and supply your services. you'll learn technology, investment designing, finance, and something of your interest. Today, individuals need content and learning, so, take good thing about it and learn new abilities and teach that skill to others.

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