There’s no point of being Financially Independent after 60 years of age, right?
So if you want to be Financially Free within 5-10 years from now, you need to grow your Corpus as quickly as possible. Three ways by which you can do this -
Let’s dive deep into each of these.
Earning more can be broken down into 3 parts -
Here are a few pointers -
[ ] Save 80% of your salary.
Most financial planners advise you to save ~ 20% from your salary. However, Financial Independence is an aggressive goal. 80% is a far better number in order to push the probability of hitting that up.
[ ] Trim down your expenses.
Your expenses expand to match your income [Parkinson’s Law]. Shortest way of expense trimming - scarcity mindset. Transfer money out of your account into your demat on first day of each month. This way you create an artificial limit to which expenses could expand.
[ ] Achieve a supernormal rate of return.
Again, as risk follows return, focus on return optimization rather than risk mitigation.