Your vision for financial freedom may make you wonder what can be the best opportunities for you to go for and get the things right! I would say that having money saved up, and seeing it grow all the time is one way towards making your vision for financial freedom come true. This doesnt mean that you live your life austerely at the present. Instead, good planning is what should be on the cards.
Proper Financial Planning?
Yes, that is the key. Almost every person starts with a separate bank account towards saving cash initially in their lives, and this never takes them far. The problem is, you will always have something to purchase and spend your money on as long as you have liquid cash available for yourself, at least this is how it works with most people. To be able to see real savings, a secured investment plan is what works.
So start with your plans. How much money do you need each month to support yourself, comfortably but not luxuriously? How much is left from your salary or daily income after that? Divide this remainder in two parts so that the bulk goes towards the secured long term investments while a bit of the remainder stays in your “savings” bank account to cater to any requirements or necessity that you may suddenly come across.
Now there are a huge number of investment options. You can go for investments that will mature and offer you the returns after a short while (like a year), or you may go for longer terms as well. And of course there are plans that will let you get your money back even earlier! It all depends on how much returns you want, and how long you may afford to pay towards the premiums.
To fulfill your vision for financial freedom, you need to be assured of the fact that even after you have retired, you must have a monthly (or other periodic) source of income, and see money come in to support you regularly. These are called the pension plans and annuities, and are generally the very long term investments. They are very safe and you may expect complete peace of mind when you retire.
And you may also think about growing your money in the bank and live on the interests derived from it later on. That is also a good option. Consider all these possibilities and options and make sure you do your calculations right. I would personally advice you to speak to an investment company on this, and then decide what may prove to be the best option for you for building your way towards your vision for financial freedom.