How to achieve financial freedom: What is financial freedom for a family? It is to accumulate sufficient corpus by a certain age to cover lifetime expenses as well as meet the requirements of financial goals at the family level. You would have surely planned your finances and invested money in certain products so far. However, it is extremely important to see whether this arrangement is taking you on the right trajectory towards financial freedom. The comprehensive plan usually incorporates a combination of several investment schemes to achieve the target of financial independence. Let’s understand with an example of a married couple in their mid-30s with 1 kid targeting financial freedom. Their income, expenses, and current investments are as follows at the family level: Chart Courtesy: Finnovate Nehal Mota, co-founder and CEO, Finnovate, says: "The stated goals of the family (before adjusting for inflation) are to accrue (i) passive income of Rs 2.5 lakh monthly for retirement; (ii) the goal of the child's higher education and a wedding worth Rs 1 crore and Rs 25 lakh, respectively. To achieve that goal, the total corpus of the family should be Rs 28.3 crore (cumulative of all goals), with keeping the secondary property of Rs 1 crore intact. For that, with a yearly allocation of Rs 16 lakh (5 per cent increase every year) and targeting 11 per cent CAGR, below is the outline for them to attain their goals. Chart Courtesy: Finnovate Nehal says, "It is crucial to periodically review and rebalance based on market conditions as well as the vicinity of their goals. The key is to align the products with the needs and risk profile of investors." Get Latest Business News , Stock Market Updates and Videos ; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Business Twitter and Facebook . Subscribe on YouTube .
Salary (Post Tax) | Rental Income | Dividend Income | Total Income | |
Per Annum | 38,00,000 | 6,00,000 | 3,00,000 | 47,00,000 |
Popular Tags:
Share This Post:
LIC Unclaimed Dividend --What Is The Procedure For Claiming LIC Unclaimed Dividend Amount; List Of Documents Required
August 27, 2024Cabinet clears Unified Pension Scheme; decision ensures dignity & financial security for government employees, says PM Modi
August 25, 2024What’s New
Spotlight
Today’s Hot
-
- August 15, 2024
-
- August 15, 2024
-
- August 15, 2024
Featured News
Latest From This Week
RBL Bank Launches Special Edition Of Vijay Fixed Deposits, Offers Upto 8.85% Interest Rates
PERSONAL-FINANCE
- by Sarkai Info
- August 14, 2024
Bank Holiday: Will Banks Be Closed Tomorrow For Independence Day? Check What RBI's Holiday Calendar Says
PERSONAL-FINANCE
- by Sarkai Info
- August 14, 2024
Bank Of Baroda Revises Fixed Deposit Rates From Today 13 August 2024 --Check Latest FD Rates
PERSONAL-FINANCE
- by Sarkai Info
- August 13, 2024
Subscribe To Our Newsletter
No spam, notifications only about new products, updates.