We work to earn our livelihood. Very few are fortunate enough to make money out of their passion. Rest all work hard irrespective whether they get job satisfaction or not. Indians try to save as much money as possible from their salaries. But is our salary income is permanent?
But only saving is not important, deploying this saving into proper financial products to earn decent returns is important for financial freedom.
This can be achieved if you plan your things properly and on time.
Important Financial decisions for maximizing your returns and minimizing risk :
- Save before you spend. Most of the time we save only when all our expenses are met. This is the wrong approach. You should first keep aside your saving amount. Transfer it in the separate bank account. No withdrawals should be allowed for any expenses from that account.
- You should save at least 20 to 30% of your monthly income. If you are single and no big responsibility on your shoulder then saving rate should be more than 50%.
- Never put all your eggs into the same basket. It means you should have the right mix of different types of investment such as equity, debt, real estate, and gold, etc.
- Once you think about investing always do your risk profiling. It is a process by which you understand what type of investor are you whether conservative, moderate or high-risk taker. It helps you to chose proper financial products according to your risk appetite.
- Asset allocation is a key for successful investment strategy. Always stick to your asset allocation mix. Do necessary changes according to your age and changes in life events.
- Only long term investment can create wealth. You should stay invested for a long time to make most of the Compounding factor to multiply your invested amount.
- Last but not least control your greed. Focus on sustainable growth rather than short cut for earning an unreasonable profit.
Saving from salary will happen if we are employed. Is our salary income is permanent? What do we do to make sure that we get salary month on moth from this 9 to 5 job? Here are some tips which are the stepping stone of financial freedom.
- Be productive to your employer: There is one concept ‘ Giving’. According to this concept if you get 1 rs as salary try to give back 1.25 rs worth of work to your organization.
- Upgrade your required skills for your job: Focus on increasing the knowledge and skills required for your present work. This will keep you ahead of your competitors.
- Be competent and a good team member: Competency in the job is an essential requirement now a days, You should know how to be a good team member and handle any situation as a team
What if we earn some extra money apart from our salaries? Is it possible to make money after we get back from work ? in this digital world it is possible.
- Start blog writing: If you have new ideas or thoughts, you want to share your stories or views blog writing is the best medium. Slowly once your blogs get good views you can start earning
- Covert your hobbies into business: If you like to create lanterns, craft items, paintings or jewelry get them on online. Many portals help in selling these products
- Assist college students in projects: Many engineering students search for helping hands who can share good ideas, insight, and experiences for their projects. Help them and earn from it.
- Freelancing: This can be done in any field which you find interesting and it is your expertise. You can manage to do it on Weekends or after job hours.
- Hobby classes: If you are a dancer, choreographer, knows cooking, painting or art and craft you can take hobby classes and earn decently.
- Tutions: If you like teaching and you are specialized in any particular subject start taking tuitions in the evening. Specialized subject teachers are in demand nowadays.
- Fitness and Yoga classes: You can open fitness classes or Yoga class if you know the required knowledge and passion for fitness.
The list is big. Keep working towards financial freedom consistently. It is not a one day job.
Be patient and focussed.
Make effective and productive use of your time, and it can get you places.