On Financial Freedom And The Power Of Fixed Deposits
Be financially free. You feel incredibly confident and supremely relaxed when you have achieved Financial Freedom. From personal experience, I can ardently vouch for the power that you have inside you when you know that you do not need to worry even a little bit about money or where it will come from if you need it during an emergency.
I've been financially free during the last 8 years of my life. Fortunately or unfortunately, I've learned to be financially free from my late Father who had a tough time during the last few years of his life due to not being financially free. Seeing him struggle and die from Brain Cancer made me realize the great importance of attaining Financial Freedom.
The other people who compelled me to be financially free are my beloved wife and son. I did not want my wife or son to have to face tough financial times as we did during my dad's prolonged battle with Cancer.
My late Mother, my siblings, and me were forcibly separated and started living in different corners of the world due to the financial difficulties we faced during the 1990s. I am guessing that all five of us have learned to focus on financial freedom before anything else due to those tough financial times in our past.
Surprisingly, once I have achieved Financial Freedom, I have learned that it does not require Millions and Millions to be financially free. I am sharing a few big secrets about Financial Freedom below which are based on my experience of being close to bankruptcy and now being financially free...
Kindly note that these parameters are created in the year 2017. Things might be remarkably different in the distant future, when you go through this post.
It takes just...
- 15 Lakhs in the banks and 30 Lakhs in Assets to be financially free on the First Level.
- 20 Lakhs in the banks and 50 Lakhs in Assets to be financially free on the Second Level.
- 25 Lakhs in the banks and 90 Lakhs in Assets to achieve total financial freedom during current times. This is the Third Level of Financial Freedom.
The 3 levels of Financial Freedom connect most with those whose yearly expenses are above 3 lakhs and below 10 lakhs. You can reduce or increase the amounts mentioned in direct proportion to your family's annual expenses during the current or previous year.
I achieved the First Level of Financial Freedom when I was 30 years old. That's 11 years ago. However, I could not hold on to it for too long. I squandered my assets and cash balance due to certain poor decisions made in my business.
However, losing my hold on Financial Freedom made me realize just how wonderful and amazing it is to be financially free and live my daily life with total freedom of doing whatever I want whenever I want to.
Recently, I have achieved the 2nd Level of Financial Freedom thanks to our little family's smart work during the last 10 years of our lives. I feel amazingly confident being on this 2nd Level. I am thankful to God for helping me greatly in achieving this level of Financial Freedom.
Of course, nothing in life is permanent but change. I could reach the 3rd Level of Financial Freedom in no time or I could slip down to Zero Level once again. Zero Level is where more than 95% of the human population reside. Hence the grave importance of me creating a post on this topic.
It feels awesome to have the freedom to do almost anything that you want to with your time. You and me can enjoy this freedom even without being financially free but it will take lots of Meditation and Relaxation along with purposeful work to help you think this way.
There is immense power inside you when you know that you do not have to worry about money anymore. Financial Freedom is the passport to living the best life imaginable. And all it takes is having enough money saved up and some assets such as abundant cash reserves, property, gold, shares of mega corporations, etc.
Many clients and students ask me how I managed to achieve Financial Freedom without Hard Work. I have told them the same thing that I am telling you. It's not Hard Work that matters, it's living a well balanced life that matters.
Doing ONLY what you love to do, what inspires you every single day, spending time with the ones that you love and care about, and spending ample hours (8+) in relaxation, meditation cum prayer, and living a comfortable life is all that matters. You can have all this even without Financial Freedom but it will require you to have achieved a high degree of Mental Strength and Emotional Stability to do so.
Fortunately, I am in a position today wherein I have both Financial Freedom along with the Mental Strength and Emotional Stability required to live a totally awesome lifestyle every single day. I am ever thankful to God Almighty for helping me reach this pinnacle of Existence after going through numerous trials along the way.
Life is indeed a journey, not a destination, but when you have the destination firmly in sight then the Journey becomes a lot more enjoyable. Make financial freedom a topmost priority in your life from today.
I find it utterly baffling why Millions of people in India don't keep their savings in Fixed Deposits. Instead of getting the power of Compound Interest to work for them they keep their money idle inside their homes or bank security lockers.
Worse is to invest that money in stocks and shares of companies that might well go bankrupt in the future thereby losing a large chunk of their savings due to the same reason.
Compound Interest is a truly powerful and ridiculously magical concept that truly can turn people in the lower income groups into Millionaires if they are patient enough to let their savings blossom over a span of two decades or more.
Rs.100,000 invested in a reliable and high interest earning Fixed Deposit each year turns into more than Rs.16 Lakhs in 10 years time. That's a free Rs.6 Lakhs for you just for being patient enough and doing the sensible thing by investing in Fixed Deposits instead of blocking up all your savings at home.
An example of the power of Compound Interest when invested in a Fixed Deposit over a span of just 10 years at 8% per year...
End of 1st Year = 1,08,000 + 100,000 = 2,08,000
End of 2nd Year = 2,24,000 + 100,000 = 3,24,000
End of 3rd Year = 3,24,000 + 100,000 = 4,48,000
End of 4th Year = 4,48,000 + 100,000 = 5,48,000
End of 5th Year = 5,92,000 + 100,000 = 6,92,000
End of 6th Year = 7,47,200 + 100,000 = 8,47,200
End of 7th Year = 9,15,000 + 100,000 = 10,15,000
End of 8th Year = 10,96,000 + 100,000 = 11,96,000
End of 9th Year = 12,92,000 + 100,000 = 13,92,000
End of 10th Year = 15,03,300 + 100,000 = 16,03,000
Let's see how the above example looks after 15 years...
End of 11th Year = 17,31,240 + 100,000 = 18,31,000
End of 12th Year = 19,77,000 + 100,000 = 20,77,000
End of 13th Year = 22,43,000 + 100,000 = 23,43,000
End of 14th Year = 25,30,000 + 100,000 = 26,30,000
End of 15th Year = 28,40,000 + 100,000 = 29,40,000
Let's check where Compound Interest takes your money after 20 years...
End of 16th Year = 31,75,000 + 100,000 = 32,75,000
End of 17th Year = 35,37,000 + 100,000 = 36,37,000
End of 18th Year = 38,20,000 + 100,000 = 39,20,000
End of 19th Year = 42,33,000 + 100,000 = 43,33,000
End of 20th Year = 46,80,000 + 100,000 = 47,80,000
That is, you get Rs.27.8 Lakhs for FREE when you invest just 1 Lakh per year in a Fixed Deposit over a span of 20 years and let the power of Compounding work for you. You have successfully doubled your hard earned money without actually working hard!!!
Most people who go through this enlightening and useful post on Gobog will do the worst thing imaginable, they will not act on the sound and time-tested suggestions given within. Well, that's why they are where they are in today's 'cashless' economy.
This post took me over 2 hours to research and write. My efforts will be worthless if you don't share this post with your near and dear ones so that they too can zone in on the immense importance of Financial Independence and harnessing the power of Fixed Desposits.
Audio Book Creator. Life Coach. Soft Skills Trainer. Counselor.
Meditation Practitioner. Food Technologist. Frugal Marketer.
Published: October 30th 2017.
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