Planning to achieve financial independence in 2018? Or you have a New Year resolution to meet all your financial goals in the upcoming year? Then are anumber of ways you need to follow to achieve this. We require money to fulfill our future and present needs. Money is our ultimate need to achieve financial independence. It is embarrassing to be dependent on someone else financially and thus, it necessary to become financially independent as soon as possible.
Financial independence assists us to make a proper planning of our daily expenses and purchasing an appropriate insurance cover and lastly making investment and tax related decisions by yourself. Below mentioned are few ways which can assist you toachieve financial independence this New Year.
1. Financial Plan
You need to identify your financial goals, and then make a financial plan and list out the ways to achieve them. Remember don’t set up too many or unrealistic financial goals. Otherwise, you may not be unable to achieve them.
2. Learn More About Protecting Your Loved Ones Financially
Financial planning for long term goals and retirement is great, but like any other smart planner, you should also spend some time on contingency planning. That will include multiple types of insurance plans to protect your investments and family in the face of untoward events.
The insurance plans you should consider are:
- Life Insurance Cover
- Pension Plans
- Health insurance
- Home Insurance etc.
The good part is most of these can be bought online. For example, you can compare online life insurance quotes and buy knowing the benefits and costs directly from the insurer.
Also, try selecting the life insurance benefits considering the convenience of your loved ones. Many insurers offer an income protection option along with the lumpsum payment with online life insurance policies.
3. Build an Emergency Fund
You must maintain a fund for the times of emergency that is the reserved cash, which would eventually cover the household expenses for few months in the time of need. Job loss, sickness, maintenance of the property, vehicle repairs—there are many things that can exclusively disturb your financial ship.
4. Debt Clearance
There is too much debt on your credit card,and you need to know how much you can actually manage to compensate your credit card company. You need to discuss and negotiate with your respective credit card agency or take assistance of financial counseling service providers to resolve your debt related issues exclusively
5. Don’t Run After Returns
Whenever you are planning to purchase or invest in a product, make sure you have all the information about the respective product. Not always the high return product is an assured investment for your financial needs. While you are purchasing an online life insurance, you need to go through the agreement completely. Make sure that you have read the term and condition completely before signing an agreement.
6. Save More Regularly
Saving regularly can greatly assist your portfolio returns over the long period of time. You must keep aside a particular amount of money every month despite having a very busy schedule in your personal life. With time, your savings will enhance exceptionally. You must consult with a professional financial planner who can assist you with precise information as per your needs.
So, if you are planning to achieve financial independence this New Year, you must begin to save on regular basis.
7. Monitor Your Finances
If you are thinking about an investment, then you must know that it is not a one-time procedure. You just cannot purchase an online life insurance, or invest in a saving account or mutual funds and eventually forget about it after few months. You must have the complete track of your investment and also remain updated about the information it upholds to comply with laws of income tax. You must review all your fees, bank statement, auto payments and interest charges on a regular basis.
We need to know how much online life insurance we need to purchase to secure our family against an unexpected event. You must make sure that the insurance ensures that your respective family members will be secure if anything happens to you.
So, if you follow the above mentioned points sincerely, you will be able to achieve financial independence in 2018.