Achieve FINANCIAL FREEDOM with Rs. 20,000! | Money Matters Ep. 2 | Ankur Warikoo Hindi
warikoo・16 minutes read
By following a specific investment plan and increasing contributions annually, the individual aims to achieve financial freedom by age 40 with 1 crore 80 lakh rupees. Recommendations include purchasing life and health insurance at age 30 and dividing funds into nifty50, midcap, and small cap mutual funds for long-term wealth accumulation.
Insights
- The individual aims to achieve financial freedom by accumulating 1 crore 80 lakh rupees through a strategic investment plan over 35 years, focusing on long-term goals and gradual increases in contributions, highlighting the power of compounding for wealth accumulation.
- Recommendations include allocating 50% of income to needs, 30% to wants, and 20% to investments, emphasizing the significance of disciplined financial planning, considering factors like life insurance, health insurance, and mutual fund selection criteria for successful long-term financial growth.
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Recent questions
How can I achieve financial freedom by age 40?
By allocating 20% of income to investments, focusing on long-term goals, and following a specific investment strategy, you can potentially accumulate 1 crore 80 lakh rupees by age 40, aiming for financial independence.
What is the recommended allocation of income for needs, wants, and investments?
It is advised to allocate 50% of income to needs, 30% to wants, and 20% to investments, prioritizing financial independence and long-term wealth accumulation.
What are the key criteria to consider when selecting mutual funds?
When selecting mutual funds, consider the total expense ratio between 0.5% to 1.5%, aim for zero exit load, and evaluate the fund's brand or performance for long-term success in wealth accumulation.
How can I utilize the power of compounding for financial growth?
By consistently investing over time, increasing contributions by 10% annually, and focusing on long-term goals, you can harness the power of compounding to achieve significant wealth accumulation and financial growth.
What insurance plans are recommended for financial planning?
It is recommended to purchase life insurance at age 30 and health insurance for both parents and self at the same age to ensure financial security and stability in the long run.
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Summary
00:00
"Financial Freedom at 40: Investment Strategy"
- The individual aims to achieve financial freedom by the age of 40, targeting a sum of 1 crore 80 lakh rupees through a specific investment strategy over 35 years.
- The person seeks guidance on selecting mutual funds and understanding the process of compounding for financial growth.
- The individual's monthly income is currently 20,000 rupees, with various expenses including travel, course EMIs, and a gold scheme.
- The person spends around 6,500 rupees on travel, has a 10,000 rupee course EMI, and invests 2,000 rupees in a gold scheme annually.
- The individual has a bank balance of approximately 5,000 rupees and is aware of provident fund deductions.
- The person plans to allocate 50% of income to needs, 30% to wants, and 20% to investments, with a focus on financial independence.
- Recommendations include purchasing life insurance at age 30 and health insurance for both parents and self at the same age.
- The investment plan involves dividing funds into nifty50, midcap, and small cap mutual funds, with gradual increases and long-term goals.
- By following the investment plan and increasing contributions by 10% annually, the individual could potentially accumulate 1 crore 80 lakh rupees by age 40.
- The power of compounding is emphasized, showcasing the potential for significant wealth accumulation over time through consistent investment strategies.
30:19
"Choosing Mutual Funds for Long-Term Success"
- When selecting mutual funds, consider three key criteria: total expense ratio should ideally be between 0.5% to 1.5%, aim for zero exit load, and evaluate the fund's brand or performance for long-term success.
- Investing for a longer duration is more crucial than the amount invested, as consistent investment over time yields significant returns, emphasizing the importance of discipline in financial planning.
