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Your Independence is Important - HDFC Life

November 05, 2018

As Independence Day approaches, we all feel just a little more patriotic. We will purchase small flags at the signals and proudly wear our finest Indian clothes as we watch the tricolor being unfurled. We’ll shut our eyes to sing Jana Gana Mana with incredible gusto and then have a chat with neighbors and friends as we relish a few snacks. While celebration of the day is a great social event today, we sometimes tend to forget the heavy losses that we suffered while fighting to gain independence. Our history books are full of names of martyrs and soldiers who laid down their lives for this noble cause.

Thankfully, independence today doesn’t require a 190-year struggle or too many sacrifices. We no longer have to fight a foreign power attempting to rule our country. Today, the independence that we require needs just a few good habits and smart investments. Because, the only independence we really need to worry about now is financial independence. When it comes to our finances, we often rely on elder relatives or knowledgeable friends to tell us how and where to invest our money. 

While it isn’t always a bad idea to take advice, it’s important to understand that our financial needs are unique and we need to make decisions accordingly. If you’re struggling with how to become financially independent, here are a few things you can do to ensure you won’t have to rely on others when times get tough:

1. Switch Your Savings and Expenditure Formula

We’ve often heard the saying ‘income minus expenditure equals savings’. Well, it’s time to flip that notion on its head. As soon as your income comes in, put away a minimum of 10% in a separate savings account. Whatever you have left is what you can spend. Once you’ve taken care of all your essentials and even treated yourself once or twice, whatever you have left over is a bonus saving. These monthly savings may not seem like a lot of money every month, but when you add it up over time and factor in the interest you will earn, it works out to quite a large sum.

2. Invest When You Can

For a lot of people, investing in anything but recurring and fixed deposits is a big gamble. While playing the stock market can be a bit of a gamble, you can choose to invest in safer avenues, such as Unit Linked Insurance Plans (ULIPs). Here, you can pick the kind of funds you want your money invested in. Plus, you’ll also get insurance cover, so if anything were to happen to you, your family members would have a financial safety net to fall back on.  

3. Get Medical Cover

No matter how well-to-do you may be, there’s no amount of money that can prevent you from meeting with an accident, falling ill, or succumbing to a critical illness. In such cases, having health insurance is critical. Your health policy will take care of the medical expenses, so you won’t have to dip into your hard-earned savings to pay those ever-increasing doctor’s bills. 

4. Start Planning for Your Retirement

It doesn’t matter if you’ve just joined the workforce, or if you’ve been working for 20 years. It’s never too early or too late to start planning for your retirement. While the savings you’re putting away will definitely help you out on a rainy day, it will hardly be enough to help you through your retired years. You’ll need to find a best retirement plan that factors in inflation and any retirement goals you may have. There are a number of options available in the market. To find one that’s perfect for you, click here.

5. Look After Your Family with Insurance

Financial independence should be a legacy that you leave behind for your family members as well. This is why it’s vital that you get yourself life cover. A good life insurance plan will ensure that your family members aren’t left grappling with leftover debt should anything happen to you. It offers financial stability to those you love, allowing them to work through their difficult time without having to worry about day-to-day expenses. Click here to find a plan that will look after you and your family members.

You’re just 5 quick habits away from gaining financial independence for yourself and your family members. Happy Independence Day!

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