By Dhirendra Kumar <\/p>\n
Many people dream of being financially independent. As the grind of earning money dominates our lives, a permanent reprieve from this is obviously the kind of freedom that most of us desire. There are degrees of financial freedom, and the ultimate degree is not having to earn at all for the rest of ones life. <\/p>\n
Obviously, apart from those with large inheritances (or those whose burden we taxpayers are committed to carry all our lives) it takes most of us an entire working life to reach that stage. <\/p>\n
However, if you save and invest to a plan, lesser degrees of financial freedom can be achieved earlier in life, and can be just as meaningful. For salaried people, achieving some kind of freedom early in life is even more important now than it was a few years ago. India is clearly passing through a job crisis. <\/p>\n
There are a number of urban middle class people who have suddenly lost their jobs. Youngsters are finding their first jobs difficult to find, or have to settle for low-quality employment. Middle-level executives in their 40s and 50s are being shunted out because employers think they can be replaced at lower cost. <\/p>\n
Not just that, those who have jobs feel shaky about them, and find that they are unable to negotiate any improvement in their position, either with their current employer or a potential future one. <\/p>\n
All this is a complete shift from the way things used to be a few years ago. Im not talking about the bad old days about which some people get nostalgic. Even four or five years ago, things were quite different. <\/p>\n
Most salary earners were confident in their jobs and were quite sure of frequent raises, either in their current jobs or better ones. They may not have had actual financial freedom, but effectively felt like they did. <\/p>\n
I have no idea when the employment situation will change for the better. However, those of us who will change their attitude towards money, savings and personal finance will be much happier, and will be able to deal with this new, uncertain world more easily. <\/p>\n
While all these job-related problems are going on, the only people who are relaxed and not stressed are the ones who have enough savings. Unfortunately, the proportion of younger salary earnersin their 20s and 30who save is quite low. In fact, the young generation is almost uniformly dedicated to negative savings. As soon as people start earning, they take on some EMIs, essentially spending future savings today. <\/p>\n
I know I sound like a crusty old uncleji giving a speech to youngsters, but like those speeches, theres more than a grain of truth here. <\/p>\n
Whether the job environment improves or it doesnt, saving as much as possible at the beginning of ones career immeasurably improves ones happiness levels later. Today, those who have even a year or twos expenses (including EMIs) worth of savings feel much more relaxed about their careers. Those who are financially secure are also able to negotiate jobs better than those who cannot take any risks. <\/p>\n
So how can one do this? It sounds obvious, but the first step towards having enough savings is to save, and the second step is to save enough. Many of us dont get started for years after we start earning. Given the raucous consumer culture that surrounds us, its not easy to start. But if financial freedom at an early age is your goal, then theres no other way. <\/p>\n
(The author is the Founder and CEO of Value Research) <\/p>\n
Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of http:\/\/www.economictimes.com<\/a>. <\/p>\n <\/p>\n Read the rest here:<\/p>\n Start saving early if you want financial freedom: View - Economic Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By Dhirendra Kumar Many people dream of being financially independent. As the grind of earning money dominates our lives, a permanent reprieve from this is obviously the kind of freedom that most of us desire. There are degrees of financial freedom, and the ultimate degree is not having to earn at all for the rest of ones life. Continue reading