Your money and your choices: being financially independent during the new normal

 

The events of the last couple of years have posed financial challenges to many. Everyone is impacted. Although the economy will eventually bounce back and everyone would be a part of the workforce once again, one must make certain choices with their money when it comes to achieving financial independence.

Being adequately protected

Your employer may have offered both life insurance and mediclaim as a part of your CTC. However, the cover offered by these policies may not be enough as these policies may leave you underinsured. Secondly, if you are between jobs, you may not be protected at all. Therefore, apart from being covered by these plans, you may consider purchasing owning a term insurance plan such as HDFC Click 2 Protect Plan and a health insurance plan to remain protected. 

Seek guidance but do what you wish to

There may be other family members who might be keen to guide you on what needs to be done. You can listen to all their inputs but you may want to take the final decision based on your needs, comfort and understanding. Alternatively, you can also seek counsel from a competent financial planner. 

Ensure that you are being paid as per market standards

Due to the glass ceiling that prevails across organisations, you may wish to compare your current salary with the existing industry standards and if need be explore opportunities that pay you on par or more than industry standards. This will ensure that you can achieve important goals such as your child’s higher education much faster. 

Savings and investments independent of others

Quite often, one may have to have joint savings or investments with one’s spouse. However, it is highly recommended that each spouse saves and invest independently. This will turn out to be a useful backup plan. 

Conclusion

Financial independence is a robust foundation that enables one to enjoy life with one’s loved ones. Therefore, despite the challenges posed by the new normal, it is critical to stick to your plan and achieve your goals. Remember, every journey begins with one small step.

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