Breaking the chains of debt: A pledge for financial freedom on Independence Day
Independence Day and the freedom our nation's forefathers fought for, let's also reflect on a different kind of freedom that matters in today's world. Amidst the festivities and 'Freedom Sales' that have become a part of our celebrations, it's a good time to think about our own financial freedom. While we commemorate our 76th Independence Day, let's ask ourselves if our wallets are as free as our country.
In a world where purchases and expenses often hold us back, especially during these sales, there's another kind of freedom we should consider — the freedom to be financially secure. Unfavourably, for countless individuals, the burden of debt casts a shadow over their ability to lead a life on their own terms. The pursuit of financial independence necessitates understanding the intricacies of the debt cycle.
With the compelling advertisements touting enticing loan options and claims of «lowest interest rates,» it's easy to succumb to the charm they cast. However, it's crucial to recognize that lower interest rates don't necessarily translate into reduced tax burdens. Let's get to the bottom of this concept through a real-life example.
The ongoing financial debate that has sparked countless discussions across the internet revolves around the age-old question of whether to 'own' or 'rent' a house. Recently, the research team at FundsIndia provided a comprehensive overview of this debate, effectively settling the matter. Among the insightful findings of this study, what particularly captured my interest was the concept of the loan repayment cycle they highlighted.
Imagine opting for a loan of Rs. 50,00,000, spread across 20 years at the lowest interest rate of 8.5% per annum. This choice would entail a monthly EMI of Rs.
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