Why many people do not experience Financial Freedom ?

Well we all have been planning for our pre-determine financial goal no matter whatever it is, either it is for our family, for education, or for retirement or anything of one's need . And for planning your age does not matters. If you are of 18 or 25 or 40 or of any age group, you must have  plans and investments in various kinds of funds and financial assets or planning to do some sort of investments so that you can secure your needs and requirements. Right. 

Well I will be not addressing any kind of investment or something where you should invest. Rather talk on financial freedom. I am quite sure that at some point of time you must have experience the Financial crunch in your life and if not then you might be the one who knows to plan finances efficiently and effectively. But have you ever experience the freedom from planning your pre-determine financial objective or imagined if retiring before 60 or doing what you love to do the most irrespective of thinking about money.

You must have, but it might be difficult for you to do with your current income status. And if not and also you don't know about finance then think once again.

So how much a person should earn according to you to obtain financial freedom? A lot of money right. But how much ?

The answer might be different. For a low income group person it might be ₹10 - 20 lakh. For a middle income group person it might be ₹10 - 20 crore. And for a high income group person ₹100 - 110 crore. So the person wgo earns more income is said to be having financial freedom.

But truly speaking, it's not. No matter the income is higher or lower it never ever decides a person is financially free or not.

   And that's the reason why maximum people have never experienced financial freedom.

For getting it more clear, consider this example. Will you called Sunil Bharti Mittal of Bharti Enterprises or simply Bharti Airtel a financially free person. You might call him. But to me, in my views he is not. WHY ?
Because if he tries to shut down the operation today and close his business, will he be able to do it ? No, because he has to pay the debts which is more than his operation cost, a thousands of employees rely on him.
But if someone who earns ₹10 lakh per month as passive income and it increases as per the time. And so he decides to leave his main source of income, will he be called financially free ?

Yes, because he has to no longer  work for money. No one rely on him for his source of income or even if his expenses increases in future, accordingly his income will also increase. And suppose that if his income does not increases then he is also a person not experiencing financial freedom . Because as per the time the expenditure increases as needs increases and a stagnant or a less increased income can never full fill the needs of any person.

And that is the real meaning of financial freedom. Financial freedom means that you get to make life decisions without having the fear of financial impact because you are prepared. You control your finances instead of being controlled by them.

So till now you might have  understood that being a rich person or earning a lot of money cannot guarantee you financial freedom.

While considering the financial freedom you must not consider or believe the myth that, after getting the financial freedom you are no longer needed to work or manage your finance. Because to earn money you have to work and also to earn income through passive sources you have to work. Because your income should increase as your expenses increases. And also you are financially free till the time you are able to manage your finances efficiently and effectively.

You must also remember that meaning of financial freedom is different from person to person. There is no specific goal or objective or something else as general. It varies from person to person. For one might be financial freedom is to buy branded clothes without seeing the tag and for other it might be to live a ordinary life, while having a lot of money with him.

So financial freedom varies from person to person similar to the different thoughts. Every human being think differently according to his demands and no two beings can have similar thoughts.

Or to the broader view, rich is a subjective term whereas financial freedom is a myth. But this myth is very important for all of us. As it leads the individual to attain the stress-free life and get the wonderful experience.

To attain financial freedom one must have 

1.) Particular source of income
2.) Skill of managing finance.

3.) Investment in financial assets

The skill of Managing finance is very important to attain the financial freedom. As by learning this skill only you can be able to make smart investments. And the investment is the only way to create wealth. You can earn money by being employed, self-employed or through business but you can only create wealth through investment. And you must remember that an effective investment does not mean that to keep your money with bank, instead the investment in financial assets like Real Estate, Stocks , Mutual Funds etc. are the effective investments.

And this requires the skill of Money Management.

So you must focus on learning and investing on yourself. As the investment in human resource is the best and only great and most important investment in the world that you can do to create wealth for yours.  And by doing so you can attain the financial freedom.

Comment below and let me know what does the Financial Freedom meant to you?
And what is your greatest investment you have made ?

IMPORTANCE OF FINANCE EDUCATION IN TODAY'S WORLD

Finance, the most common word every one of us have heard. And when it comes to the financial education most of us have ignore it by taking it as a less important topic to discuss or learn about finances and even most have a myth that they can manage their finance.


Surely you can manage your money, pay bills have savings and do little of investment but for a moment have a look over here. There are many persons who learn about finance throughout their life. You might have heard about mutual funds and Index Funds and surely invest in them in hope of better returns then FD.


 But do you know that these funds are managed by the fund managers who spent their whole life in managing your finance but there are only few who are able to beat the market returns. It is not that they are inefficient but the fact is that managing finance is not a joke and the persons managing finance are not the jokers juggling the balls of finance in circus.


You might have heard about the greatest name in the world of finance and investing MR. WARREN BUFFET who says no one can beat the market as it is not predictable.


Till now you might have get confused why I am talking about fund managers and mutual funds as they are not interlinked to the topic. but think over here again is it so ? Actually not. Finance, Managing Finance and Financial Education is not limited to paying your bill, have some savings and do a little investment and earn a huge return over it but rather it is more than that.


Even there is a certain way for paying the bills, making investments and doing savings. I'll be explaining you by giving a brief summary of two legend books RICH DAD POOR DAD and THE RICHEST MAN IN BABYLON.

The both the books will help you to overcome from the myths related to finance which we all possess unknowingly and because of these myths most of you suffer from financial adversities, but never tries to learn finance and again did the same thing and again fell in the same scenario, but never tries to get the correct financial education and solve your all the problems related to finance.


In the book RICH DAD AND POOR DAD you'll find out how taxes are making you poor and ways to get rid of them and know the meaning of assets and liabilities, and trust me this is the most important thing you all need to learn. Briefly stating ASSETS are those, which put money in our pocket and LIABILITIES are those which pulls money from your pocket and also learn about the balance sheet of poor, middle class and rich people, how they manage their finance and why middle class suffer from financial adversities.
And in THE RICHEST MAN IN BABYLON you'll learn about how to manage your finance which you surely never knew and more surely it'll help you in financial problems.


YOU MUST READ THESE TWO BOOKS IN YOUR LIFE AT LEAST ONCE AND TRUST ME THESE BOOKS WILL CHANGE YOUR ENTIRE LIFE.


Till now you must have understand that managing finance is a difficult task and many people spent their life in managing their finance but you need not to do all throughout your life. You' ll only need to learn the some basics of financial education.

You must also learn to invest according to your appetite and risk taking. By getting the basic financial education, you can invest in mutual funds and index funds if your appetite is smaller or have less time to do any type of analysis and trust me they are less risky and always gives you more return than FD and other investments with government.


And if your appetite is bigger and have a lot of time you can also invest in stock by either doing Technical Analysis or by Fundamental Analysis. But remember doing the both analysis is very difficult and you must required to learn about both of them in detail. And must be cautious about learning the both from you tube or any free available learning online. You must surely learn from them but remember that you can only learn basics and theory of the analysis on both of them not the practical, exact and detail techniques and study of market and stocks.


You must learn the analysis from the mentor and the books available in stock market and especially from the letters of Berkshire Hathaway. but remember to learn the analysis takes a lot of time and also to find a idle mentor is also difficult.


One way of doing so is that you can take the help of a known investor or a person investing in stock market like Fund Managers, Portfolio Managers, Financial Advisors and more experienced persons related to finance.


And if you still think learning finance is deluding yourself then trust me, Financial education is the sole key that can bring prosperity, success and financial freedom i.e free from the tension of money management and no longer need to depend on only one source for money as it'll help you to create more than one sources of earning money.


You must learn about finance and money management to continue your rest of your life without facing any financial adversities and need no to worry about finances.