Hello Sir! Myself Madeswaran and I am 33 yrs old. I have worked for 10 years and I have no savings and saved nothing. I had 6 Lakhs in my savings 4 years back. Purchased gold for 1 lakh. Purchased car in 2 nd had for 3.5 Lakhs and Lost 3 Lakhs in forex an year back.I am having debt of 1 Lakh now and cleared Rs.50,000. Now my monthly income is only Rs.45,000. I have house expenses of Rs. Rs.30,000 and Loan emi of Rs. 5,000. I give. I am not able to find how the rest of Rs.10,000 money gets drained away. Now I want my financial freedom at the age of 50. What shall I do amd how shall I start. I am also looking for secondary income to get some financial buffer.
Ans: Hello Madeswaran! It's commendable that you're seeking to take control of your finances and work towards financial freedom. Let's assess your current situation and explore steps to get you back on track.
At 33, with a monthly income of Rs. 45,000 and monthly expenses of Rs. 35,000, it's essential to understand where the remaining Rs. 10,000 is being spent. Tracking your expenses diligently can help identify areas where you can cut back and redirect funds towards savings and debt repayment.
Given your previous financial setbacks, it's crucial to prioritize building an emergency fund to cover unexpected expenses and avoid going into further debt. Aim to set aside at least 3 to 6 months' worth of living expenses in a separate savings account as a safety net.
Addressing your existing debt of Rs. 1 lakh should be a priority. Focus on clearing this debt as soon as possible by allocating a portion of your monthly income towards repayment. Cutting back on non-essential expenses can free up additional funds for debt reduction.
Considering your goal of achieving financial freedom by the age of 50, it's important to establish a long-term financial plan. Start by setting specific, achievable goals and creating a budget to track your income and expenses.
Explore opportunities to increase your income through additional sources such as freelance work, part-time jobs, or starting a side business. Generating a secondary income can provide a financial buffer and accelerate your journey towards financial freedom.
Investing in yourself through education, acquiring new skills, or pursuing career advancement opportunities can also enhance your earning potential over the long term.
Finally, seek guidance from a Certified Financial Planner who can provide personalized advice tailored to your financial situation and goals. They can help you create a roadmap for achieving financial freedom and offer support and guidance along the way.
Remember, financial freedom is achievable with determination, discipline, and strategic planning. By taking proactive steps now, you can pave the way for a brighter financial future.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
