ithoughtplan Profile picture
Feb 27 12 tweets 9 min read
Almost every millennial aspires to retire early. But most of the time, this goal seems almost impossible to achieve.

Well, let us tell you... it's NOT impossible! Welcome to the world of FIRE! (1/n)

#financialplanning #financialgoals #retireearly #thread
So, what is FIRE?

FIRE stands for Financial Independence Retire Early and it's all about achieving financial freedom so that you can retire early and live life on your own terms. (2/n)

#financialindependence #financialfreedom #retirementplanning
Can you achieve FIRE in India?

Yes, you can!

Firstly, you need to focus on your Savings Rate (SR). This means cutting back on unnecessary expenses and living below your means.

A high SR is key to achieving financial independence. (3/n)

#saving #investing #FinancialFreedom
Next, you'll want to invest your savings in a way that maximises returns and minimises risk.

It often involves diversifying your investments across different asset classes, such as stocks, bonds etc. (4/n)

#investing #equity #debtinvesting #gold #bonds
Generating passive income is also crucial to achieving FIRE.

This can come from a variety of sources, such as rental properties, dividend-paying stocks, or a well-designed investment portfolio. (5/n)

#portfolio #dividend #realestate
Finally, achieving FIRE requires discipline, patience, and a long-term perspective.

It's not a get-rich-quick scheme, but rather a deliberate, intentional approach to financial planning that can lead to a more fulfilling and satisfying life. (6/n)

#financialplanning
One popular way of achieving FIRE is through the 4% rule.

This rule states that if you save and invest enough to accumulate 25 times your annual expenses, you can safely withdraw 4% of your savings each year in retirement without running out of money. (7/n)

#retirementplanning
Of course, there are risks and challenges involved in pursuing FIRE. Inflation, market volatility, and unexpected expenses can all impact your plans.

It's important to have a backup plan and be prepared for any contingencies. (8/n)

#inflation #interestrates #volatility
But despite the challenges, many Indians are embracing the FIRE lifestyle and achieving financial independence.

With discipline, patience, and a long-term mindset, you too can join the ranks of early retirees and live the life you've always dreamed of. (9/n)

#retirement
Lessons from the FIRE movement:

1. Start financial planning for early retirement. When your target is clear, it is easier to achieve it.
2. Control your expenses.
3. Find additional sources of income.
4. Make saving and investing a habit. (10/n)

#financialplanning #savings
So, what are you waiting for?

Start saving, start investing, and start working towards your financial independence today! (11/n)

#financialplanning #financialindependence #financialgoals #financialfreedom
If you find this thread useful, retweet it and help us reach more people like you. (12/n)

#financialplanning #financialfreedom #financialgoals #investing #savings #personalfinance

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More from @ithoughtplan

Feb 21
If you are looking for an efficient investment to save tax in India, this is for YOU!

The BEST way is to invest in ELSS Mutual Funds. You can save up to ₹46,800 in taxes under Section 80C!

Here is how! (1/n)

#ELSS #mutualfunds #taxexemption #thread
Every year in March, as the financial quarter comes to an end, there is a rush to invest in tax-saving funds.

And with the quarter end so near, let's look at why ELSS is so popular as a tax saving scheme. (2/n)

#ELSSfunds #taxsavings #investment
What is ELSS Fund?

ELSS fund, or Equity Linked Savings Scheme fund, is a tax-saving scheme that allows you to save tax while investing for your long-term goals. (3/n)

#savetax #financialgoals #taxsavingschemes
Read 18 tweets
Feb 16
Is there a SMARTER way to buy Term Insurance?

Can you get back all premiums paid while paying the same premium as a Pure Term cover?

This all sounds too good to be true, doesn't it? Let's dive deeper to find out 👇 (1/n)

#terminsurance #insurebesure #insurancepremium #thread
Zero-Cost Term Insurance plans allow you to 'exit' from the policy, thereby getting all the premiums that you have paid back.

But wait... What's the 'catch’? (2/n)

#insurance #terminsurance #financialfreedom
The CATCH is... You are allowed to exit the policy only within a specified period.

Let's look at an example. (3/n)

#insurancepolicy
Read 13 tweets
Feb 9
Just a month into the new year and we already see some new myths floating around Financial Planning.

In this thread, we aim to debunk some of these myths & take a look at how financial planning can help you, the reader! (1/n)

#financialplanning #FinancialFreedom #MythVsFacts
Myth #1 Financial Planning is Only for Rich People

At their core, a good Financial Planner helps YOU achieve YOUR GOALS. Everyone has goals, not just rich people.

A good financial plan will help map your goals & help make your 'plan' a reality. (2/n)

#financialgoals
Myth #2 I am too old/ too young for a Financial Plan

Age is no bar. You are never too young or too old to have a proper financial plan in place. Planning can help people build wealth over a period. (3/n)

#FinancialFreedom #financialplanner #retirementplanning
Read 8 tweets
Nov 14, 2022
To all of you who are new to the workforce… Congratulations!!! You have secured your first job.

But are you confused about how to best use your current salary? (1/n)

#salary #cashflow #payday #money
Most people complicate things. It is only natural when there are so many investment products to choose from. That need not be the case.

Here are some simple tips for someone just starting! (2/n)

#equity #fixedincome #gold #realestate
#1 Start Building an Emergency Fund

This should be your first priority. In case of emergencies, you shouldn't be left empty-handed.

Having 3-6 months of expenses set aside will be optimal. (3/n)

#emergencyfund #savings
Read 16 tweets
Oct 31, 2022
Have you ever wondered how much you need to save for your retirement? Ever wonder if you will make it or fall short?

Over 600+ clients have benefited from our Financial Planning engagement!

Here are FIVE ways financial planning can help you! (1/13)

#financialindependence
Before we begin, financial planning is a very personalised process. Every person's need is different. That is why we aim to craft tailor-made financial plans to meet each individual's needs. (2/13)

#financialplanning #personalfinance #savingstips
#1 Achieving Your Goals

Managing your finances in a way through which we can help you meet your goals is the crux of the planning process.

Proper planning can help you accomplish goals that you thought were far out of reach! (3/13)

#financialplanning #financialgoals
Read 13 tweets
Oct 26, 2022
Have you bought a car on the occasion of Diwali?🧨 While purchasing a car is an enjoyable process, choosing the correct insurance often becomes confusing.

Here is a short #thread on 7 things you should consider before buying #CarInsurance. (1/n)
#1 Should you take insurance from the tie-up dealer or with an outside agent?

Insurance from the dealership is often more expensive than when individually purchased. The reason is the dealer passes on the commission received on selling #insurance to the customer. (2/n)
✅What You Can Do: A prudent thing to do would be to check outside before going ahead with your dealer. This can also help you to negotiate better prices with your dealership. Policy bazaar is a great place to compare quotes from different insurance providers. (3/n)

#insurance
Read 14 tweets

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