1. What is Financial Security?<\/p>\n
2. Why do you need financial security?<\/p>\n
3. Is this possible with normal earnings?<\/p>\n
4. How to start building Financial Security? \u2013 Step by step guide<\/p>\n
5. How to know the present status of your money, investments & assets.<\/p>\n
6. How to check your present expenses towards necessities<\/p>\n
7. How to make a Plan to build your Financial Security<\/p>\n
8. How to check the present status of your Financial Security<\/p>\n
9. How to calculate monthly saving target to achieve Financial Security before age 45.<\/p>\n
10. For a non-accounting background person, calculation of many things are difficult. In that situation what should do?<\/strong><\/p>\n Let\u2019s start with\u2026..\u00a0\u00a0<\/p>\n What is a Financial Security?<\/strong><\/p>\n A regular lifelong monthly income to sustain your necessities is your financial security.<\/p>\n To achieve this financial security, people are doing jobs or businesses so they will get regular monthly income. This income remains until you work. If you do not have job or work then your income stops. So this active income is not your real financial security.<\/p>\n Financial Security means\u2026<\/p>\n \u201cA regular lifelong monthly income which in enough to sustain your basic necessities is your financial security. This monthly income you should get without doing any active work.<\/p>\n So building your monthly income source is very necessary which you should get without doing any work. If you take the right path & guidance then this effortless income you can create with your normal earnings while doing your job\/business or active work.<\/p>\n This effortless monthly income you will get apart from your active income and this will be like your Financial Security which will increase over course of time.<\/p>\n Your investment can create such income which takes care of your monthly necessities. It will be like your monthly pension which you can start building at the age when you start earning. If you take this seriously and work for a longer period then you can able to achieve with normal earnings.<\/p>\n Why do you need Financial Security?<\/strong><\/p>\n Living a stress-free and happy life is very necessary for humans. The present environment is making life more complex and stressful due to which our happiness is at risk.<\/p>\n Now it is up to us, till how long we want to live such a stressful life, especially for the money. Our most of the time is going just to earn money for sustainability and money for good living.<\/p>\n This everyday struggle for these has become part of our life and continues till retirement age 58 or 60. Even after retirement age, it is continuing. This must be stopped well before age 45 so after age 45, life can be lived with ease and life can be enjoyed while doing active work.<\/p>\n Another main reason is that in any distressed time no government is going to help you and your relative can provide very limited help. So only you are the person who can protect you and your family for any distress time.<\/p>\n So to address both, you need to create Financial Security.\u00a0<\/p>\n Is this possible with normal earnings?<\/strong><\/p>\n In India, especially middle-class people have accepted this struggling life cycle. Those who want to come out from this cycle, are focusing on making money either by speculation like the share market or doing something like business or earning by other means.<\/p>\n These all efforts are good but people are spending this earned money to upgrade their lifestyle, purchase luxury goods, expensive holidays and such kind of expenses. Even after earning, the struggle to earn money continues.<\/p>\n So those who have normal earnings and also those who are focusing for making money, if they can take control of their money and put their money to work then they can create Financial Security over course of time.<\/p>\n How to start building Financial Security? \u2013 Step by step guide<\/strong><\/p>\n Now the question is, from where you should start building financial Security. Age is not a bar. The best scenario is that you should start working on financial security from the age when you start earning. It may vary from age 16 to 28. If you are late too, you can build your financial security with rigorous earnings, savings and investing.<\/p>\n You need to work on three main things<\/p>\n For any non-accounting background person, the calculation of many things is difficult. In that situation what you should do?<\/strong><\/p>\n Pre-designed Excel sheet will calculate by just feeding all the required details.<\/p>\n Now for every step, we will see how we can do with both the options.<\/p>\n Step -1<\/u><\/strong> \u00a0\u2013\u00a0 Check present status of your money (for calculating your present Financial Security status).<\/strong><\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Oprion-1 (By self)<\/strong><\/p>\n Option-2 ( By Pre-designed Excel Tool)<\/strong><\/p>\n Step-2 \u2013 Check your present expenses towards necessities.<\/strong><\/p>\n While calculating your present expenses towards necessities, you must remember that these tentative monthly expenses are for your very essential necessities which are essentially required to run your family\u2019s basic expenses like\u2026<\/p>\n Option-1 (By Self)<\/strong><\/p>\n Option-2 ( By Pre-designed Excel Tool)<\/strong><\/p>\n Step-3 \u2013 Make a Plan to build your Financial Security.<\/strong><\/p>\n Now you plan what should be the goal to achieve your financial Security<\/p>\n To achieve anything, you need to set the goal so you can achieve your goal in time. Similarly, in the case of financial security, you need to set targets by which you can achieve Financial Security well before age 45.<\/p>\n This is one of the ways by which you can achieve Financial Security at the right age with normal earnings. You need to set 4 goals and achieve them one by one.<\/p>\n 1st<\/sup> Goal \u2013<\/strong>\u00a0Save an amount equal to 6 months of monthly expenses.<\/p>\n 2nd<\/sup> Goal <\/strong>\u2013\u00a0Your invested money should generate a monthly income which should equal to your present monthly expenses for necessities.<\/p>\n 3rd<\/sup> Goal<\/strong> \u2013\u00a0Your invested money should generate a monthly income which should equal to your present monthly salary.<\/p>\n 4th<\/sup> Goal<\/strong> \u2013\u00a0Your invested money should generate a monthly income equal to the money you need every month to live life comfortably.<\/p>\n By these 4 goals, you can achieve complete financial security. Even after achieving 2nd\u00a0goal, almost you will be in a comfortable position and achieved basic financial Security.<\/p>\n To achieve this, you need to be firm that in any condition you don\u2019t loose hope and you will keep chasing all these 4 goals while living your regular life. It is time taking process and you need very patience.<\/p>\n It is also important you should enjoy life and build a debt-free home parallally.<\/p>\n Step-4 \u2013 Check the present status of your Financial Security.<\/strong><\/p>\n After completing steps 1 &2, now you are aware of your present net worth, present monthly income from all the investments and present monthly expenses for necessities.<\/strong><\/p>\n Now you check the present status of your Financial Security.<\/p>\n Option-1 (By Self)<\/strong><\/p>\n Option-2 ( By Pre-designed Excel Tool)<\/strong><\/p>\n Step-5 \u2013 Calculate monthly saving target to achieve Financial Security before age 45.<\/strong><\/p>\n To achieve your goal well before the age of 45, you need to plan monthly saving and investing targets.<\/p>\n Now you need a calculate what monthly saving target you should keep, every year how much to increase your saving target, till which age you want to achieve & in which year and at what average interest rate you should consider to invest.<\/p>\n This you can calculate by incremental recurring deposit calculator which should calculate what monthly saving target you should keep, till which age can achieve, in which year and at what average interest rate you should consider to invest.<\/p>\n Option-1 (By Self)<\/strong><\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0 Option-2 ( By Pre-designed Excel Tool)<\/strong><\/p>\n Step-6 \u2013 How to monitor & achieve Financial Security<\/strong><\/p>\n Option-1 (By Self) and Option-2 ( By Pre-designed Excel Tool)<\/strong><\/p>\n Things you must follow to achieve Financial Security<\/strong><\/p>\n Explore our Pre-designed Excel Tools<\/a><\/strong><\/p>\n\n
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