Posted By: Admin
We look at Independence from a Financial perspective to do a rough check if we are all Financially Independent. What is financial independence ?
Financial independence is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities. For financially independent people, their assets generate income that is greater than their expenses.- source Wikipedia.
For a man who is the head of the family and working in a job – this is when we has sufficient resources set aside for children’s education, his own retirement, medical emergencies and any other exigencies.
For a Businessman, that could mean the ability to grow the enterprise without the constraints of money and to do truly innovate even though it may not add to the bottomline in this/ or next quarter.
For a Home maker, it could mean a small savings set aside to take care of an aged mother or to give a gift to near and dear ones without having to resort to the bread winner.
For a young adult who is just starting out his career, financial independence is equivalent to not leaning on anyone for his money needs and being able to provide for ones self…
In all the above illustrations the common thread that is seen is to anticipate ( PLAN) ones needs well and then execute ( IMPLEMENT) the plan of action. .. and stay the course irrespective of set backs so as to reach ones goals.
A well defined PLAN, executed well could the secret to your Financial Independence.
So irrespective of your current state of affairs.. give independence a thought.. it may be worth it.
Here's "The Importance of Financial planning"