Financial Independence is for Everyone, Not Just Nations
While India is striving towards becoming self-reliant, individuals must also aim for personal financial independence. According to financial expert Balwant Jain, self-reliance isn’t just a national goal but a personal journey that requires disciplined savings, smart investments, timely insurance, and financial literacy from a young age. With the right steps, anyone can lead a secure, independent life without money-related stress.
Financial literacy should begin early. Schools should incorporate basic financial education so that children understand the value of saving and money management. Even if schools don’t provide this, parents must ensure their children learn these crucial life skills. Part-time work during college can also help young adults gain financial experience and build responsibility.
Albert Einstein once said, “Compound interest is the eighth wonder of the world.” The earlier you start saving and investing, the more wealth you can accumulate.
For example, investing ₹5,000 per month from the age of 20 could grow into ₹5.88 crore by the age of 60, assuming a decent return. But starting late would require much higher monthly contributions for a similar corpus. Early savings is the foundation of self-reliance.
Buy a term life insurance plan to protect your family financially in case something happens to you. Also, opt for health and critical illness insurance while you’re young and healthy. Medical costs skyrocket with age, and not having insurance in old age can erode your lifetime savings.
Buying a house may seem like a huge commitment, but it offers long-term benefits like reduced expenses post-retirement and tax savings. Even if you need to take a home loan, owning a house provides emotional and financial security.
Whether you contribute to a Provident Fund (PF) or National Pension Scheme (NPS), keep those savings strictly for retirement. Premature withdrawals can lead to financial stress during old age. Treat retirement funds as untouchable until you truly retire.
Don’t transfer property to your children while you’re alive. Instead, prepare a legal will that reflects your wishes. If you're short on funds, consider a reverse mortgage – you can receive up to ₹50,000 per month by mortgaging your house without losing ownership.
From paying bills to ordering groceries, everything can be done via smartphone today. Learning basic tech skills is essential, especially post-retirement, to maintain your independence and handle daily tasks with ease.
Your body is your first asset. Regular exercise and a healthy lifestyle help ensure you’re not dependent on others for your daily needs. Staying fit keeps medical expenses low and increases your overall independence.
Financial independence is a lifelong goal built through small, consistent efforts. By starting early, managing money wisely, and securing health and assets, you can lead a worry-free, self-reliant life. Balwant Jain’s expert tips offer a clear roadmap to build personal financial strength at every life stage.
