Steps to Financial Nirvana / Independence
Step 1 to Financial Nirvana / Independence: Create an Emergency Fund
- This is needed to take care of any Financial emergency
- Job Loss
- Unwanted Travel
- Sudden breakdown of a machinery like Car, TV etc.
- Sudden loss of un-insured items like theft of cell phone etc…
Step 2 to Financial Nirvana / Independence : Get Insured
- Life Insurance to take care of any unfortunate event
- Contact your financial advisor on the amount of life insurance you need. Amount should cover all expenses and your outstanding loans.
- Health Insurance for you and all your dependents
- e.g a Family Floater Plan
- Critical Care / Accidental Care Plan
- This takes care of your dependent when you are not working and on bed rest
- Insure your high value investments like house, car, business establishments etc.
Step 3 to Financial Nirvana / Independence : Invest Wisely
- If you haven’t appointed a financial advisor yet please do it as soon as possible
- Learn to differentiate between saving and investment
- Have investment made for each of your life goals
- Invest as per your risk profile and time to goal
Step 4 to Financial Nirvana / Independence : Miscellaneous Tips
- Plan for at least one house (your retirement home)
Prepare a will and keep your immediate family members informed about all your investments and insurance policies.
Teach your dependents some money making skills so help them share your burden and be on their feet if you are gone.
Step 5 to Financial Nirvana / Independence Important to keep in Mind
- Make sure to annually review your plan and make corrections based on your investment returns and changing goals
- Splurge at times if your goals are on track. Who wants to live a miser life!
Step6 : Result the Financial Nirvana / Independence
- Live a Happy and Financially independent live
- The Nirvana!