Thread by @sainathkm

A List of Financial Freedom steps - Learnings which worked! ✅
#Thread #FinancialFreedom 🔘

Should I be Financially Free to be Happy?
⚪ No, skip this thread
🔘 Maybe, Let me go through the thread
🔘 Yes, That's one of the ingredients for Happiness, Let me check if I missed anything.

What should be my first Goal when I start earning (or Today)?

⚪️ Nothing
⚪️ Let me spend my money
🔘 Create the list of short (1-2 year), Medium (2-5 years) and Long-term(More than 5 years) Financial needs and goals

What should be my Second Goal when I start earning (or Today)?

⚪️ Nothing
⚪️ Come on, Let me spend my money
🔘 Save enough for an Emergency Fund (for any urgent unplanned expense)

What should be my Third Goal when I start earning (or Today)?

⚪️ Nothing
⚪️ Please, Let me spend my money
🔘 Identify how much needs to be kept aside monthly for each of the short, Medium and Long-term goals/needs I identified.

What should I put in my Short Term Goals/Needs?

⚪️ No idea
⚪️ Nothing at all
🔘 Creating an Emergency fund, Short vacation plans, Yearly premiums, Repayment of small debts/credit card etc

What should I put in my Medium Term Goals/Needs?

⚪️ No idea
⚪️ Nothing at all
🔘 Prepaying Home/Education Loan, Buying any Movable Asset, Long Vacation Plans etc

What should I put in my Long Term Goals/Needs?

⚪️ No idea
⚪️ Nothing at all
🔘 Creating Retirement Fund, Kid's education Fund, Buying Non-movable assets etc

What should be the First thing I do at the start of a month?

⚪️ Check my Salary Account
⚪️ Start Spending the Salary
🔘 Make Monthly Budget with both Income and Outcome written down clearly.

How much should I save monthly?

⚪️ Noting at all
⚪️ Just enough to pay me Credit Card Bill
🔘 More than 50% of the monthly earning (Rather as maximum as I can)

How much can I spend monthly?

⚪️ Whole of my earning
⚪️ Earning + Maxed out Credit Card
🔘 Spend amount left after Saving (Spending after Saving)

What should I do with my Credit card?

⚪️ Spend as much as I can
⚪️ Collect as much credit point as I can
🔘 Pay it off, Cancel it and Burn them - You never should spend more than your means. Period.

If I have a Home/Education Loan...

⚪️ Keep paying the Monthly instalments
⚪️ Take more Loans for Home/Education upgrade
🔘 Make a plan to close the Loan in Minimum Duration (Medium Term Goal)

How frequently should I review my Goals and Progress?

⚪️ Every Hour
⚪️ Every Day
🔘 Every Month (End of the Month or max every Quarter)

Ok, I got it about the goal, but don't I need to invest my Savings?

⚪️ Nope, Don't invest at all.
⚪️ Invest in the first opportunity which my Friend said
🔘 Talk to a Financial advisor who is not related to any specific Financial Company/Product

What are the important concepts I need to go through by myself before meeting a Financial advisor?

⚪️ Nothing
⚪️ Fixed deposit.
🔘 Compounding, Systematic Investment Plan, Type of Equity options - Mutual Funds & Shares..etc

Should I be insuring myself for any uncertainty?

⚪️ Nope, Not required
⚪️ Maybe, Let me check with my LIC Agent/Uncle
🔘 Yes, Go Online, Pick the best Term Insurance for yourself with Cover (5 times your yearly earning + All debt) and Duration (At least till your 60 years)

Ok, I did it all as mentioned, But what should be the end product?

⚪️ No idea
⚪️ More Money to spend
🔘 No Debts or Debts with pre closure plans, Saved enough for uncertainties, Invested enough for future and Happy Me 😃

This isn't complete and never would be - Just jotted down couple of steps to start with and mainly to trigger people to think in right direction when it comes to Finance #Thread #FinancialFreedom 🔘