Discovering FIRE: How to secure your financial independence
₹9.96 crore after 15 years to become financially independent at age 45. Apart from this, keep an additional amount parked for emergencies and a safety net. Hence, a round figure of ₹10.5 crore.
Define what financial independence means to you, the lifestyle you want to live, and the amount of money you'll need to achieve it. It is essential to be debt free. Utilize your bonus, income tax refund, or any windfall income to prepay your debt/loans.
It is suggested to prepay high-interest debt first, like credit card due or personal loans. You can also do a comparison; if clearing a long-term loan is more beneficial, that will majorly depend upon when you started the loan and the interest rate. Prepaying in the initial stage of the loan becomes more advantageous.
Avoid lifestyle inflation by keeping your expenses the same even after salary increments; this will help you to save and invest aggressively. Financial independence is a critical decision; do not hesitate to seek professional help to make an informed decision. Attaining financial independence demands both time and discipline in investing.
Stay dedicated to your goals, detach yourself from the outcome, and don't get carried away with quick money and other investments. Financial independence is a journey, not a sprint. It requires a long-term commitment to being patient and consistent.
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