The first investment in the start-up of financial freedom is important. Many people have built up significant wealth. Moreover, they invested their money one way or another. Financial freedom is not necessarily about money, but about our time. Having the ability to do what we want every day and not have an obligation to work 9 to 5 in an office.
Investing can lead us to many different outlets. It can give us the freedom to explore, travel, and see the world differently.
Investment Vs Savings
It is essential to think about the difference between Saving vs Investing. These terms are commonly used hand in hand. Most personalities believe it is the identical thing. But not everyone realizes the importance of investing our money.
- First saving leads to a habit to save for the future. Savings is the process of consuming less than what we earn. We can keep intentionally, or we can save by concentrating on making certain expenses. Saving is the first step, as we must have savings to be able to invest.
- Your Investment is the process of taking our savings and using it to buy capital assets. These assets should work for us over time and either generate income or growth. Investing allows us to make our savings work for us and multiply over time.
Over time our goal should be to build up enough capital assets. We should have a portfolio of assets that provide enough income and growth for us to live off. That is what some people call financial freedom, and others call retirement.
By managing expenses and making the first investment in quality assets, we can all achieve financial freedom.
Tips For Your Investment
Follow, as mentioned below.
1. GET Term Plan (At least 50 Lakh). It will help you in a big way for sure. At the age of 25, you will not understand the gravity of it, but when you reach 30, you will regret not having one. If you start the term plan now, you will get to know its uses when you reach 30.
2. Start SIP in MF. Be bold in this investment as you are only 25. Put at least 20 % of your earning in SIP.
3. Open Demat account. Learn about the dynamics of the share market. Try to invest in equity but only after having enough knowledge.
4. Learn about Cryptocurrency. Learn how you can trade, About transactions and platforms to perform operations. Please do not get carried away if you decide to put money in this investment. I suggest starting with only 10,000 Rs max. Try to make a profit from this invested amount and then take risks on gains. You are just 25 and the Crypto market will boom in 2018. Do not miss the opportunity. There is negativity in demand for this. But be opportunistic.
A single person can avoid the purchase of term insurance. The reason is, he/she has nobody for taking care of after one’s untimely demise.