"Start small but start investing" — Anil Hanegave
Having an active source of income is great, but relying on it for more than 80% of your total earnings can be risky. Begin cultivating multiple streams of income early on. The goal is to establish enough passive income that lets you live life on your terms, free from concerns about covering bills or retirement.
Financial freedom isn't just about being wealthy; it's about having control over your finances. Imagine having the freedom to pursue your passions, like starting your own business, without worrying about income. For instance, if you have enough passive income for the next 10 years, you're financially free.
The exciting part is that investing is legal and allowed by most organizations. You can do it alongside your job, perhaps during your evening hours. This way, you're actively working towards securing your financial future while maintaining stability in your current job.
Understand Where You Are Presently: Start Early.
Write Your SMART Goals: Establishing SMART goals provides a clear roadmap for your financial aspirations. For example, a SMART goal might be to 'increase monthly savings by 20% within the next six months' or 'achieve a 10% return on investment by the end of the year.
Cultivate Save and Invest Habit: Tracking expenses, spending less, and investing more is easier than creating an additional source of income. Consider adopting the 50/30/20 rule, allocating 50% of your income to necessities, 30% to important spending, and 20% to savings and investments. This balanced approach ensures a healthy financial foundation while fostering a habit of consistent saving and investing.
Minimize Debt: Debt is a significant obstacle on the path to financial freedom. Creating a solid financial foundation is conducive to strategic investing.
Remove All Credit Card Life: Credit cards can be a double-edged sword. This not only reduces the risk of accumulating high-interest debt but also encourages a more mindful approach to spending.
Create Additional Sources of Income: Start investing in growth stocks at the right time, aiming for a 10 crore portfolio. Learn fundamental and technical analysis to find valuable stocks. Having multiple revenue streams provides a financial safety net and accelerates your journey towards financial freedom. This decision depends on what works best for you.
By setting SMART goals, cultivating saving habits, minimizing debt, and creating additional income sources, you can lay a solid foundation for a secure and prosperous future. Read the complete investment strategy with case studies in my book.
🤵 About the Author — Mr. Anil Hanegave has been an investor and trader for over 8 years. He is now an investing coach, assisting investors and traders through his mentorship programs. Anil has authored more than 4 books on investing and intraday trading topics. Visit his online platform at www.tradingdirtion.in for more details and to download a 📕 free eBook on investing.
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