Why should I invest?
Inflation explained in simple language
Last week i visited a prospective client through a reference. He shared his idea of saving & preserving money. He shared his details & my goodness; he is sitting on worth 30 lacs in Fixed Deposit!
The emotion of preserving money is great but the question is is it increasing as compared to inflation?
People still think FD as a superior option to preserve money. I would rather say, the person who has invested in FD is an utter loser.
FD should ideally contain only the amount which can be used in emergency situation.
Financial Freedom means having zero tie-ins to anything financial. It includes your income, debt and expenses, lifestyle. It is of little matter how people perceive the meaning differently. Rather, it is more crucial to understand how to act based on your financial situation.
Being debt-free should not be confused with being financially well off. If you are only debt free, you still have to work in order to pay for your basic expenses and taxes. In order to achieve financial freedom, the first thing we have to ask ourselves is what does it take to be debt free?
Income & Expenses
There are other factors to take account of like servicing & other maintenance costs, fuel costs, repairs etc. Moreover, this is just a car. Think of other factors also. Your expenses must be well managed to achieve this goal.