Business Development Being financially independent

Being financially independent

Find out how you can help various categories of clients achieve financial independence.
Daya Ragunathan Aug 16, 2017

Financial independence is having enough money to provide for one’s basic needs. While, financial independence is very crucial in all stages of life, most people enjoy financial independence only during the tenure of their work. Read on to find out how financial independence can be sustained in other phases as well.


Young people might not feel the need to start investing because their needs are usually taken care of by their parent or guardian. However, inculcating the investment habit in youngsters will go a long way in securing them financially.

Pradeep Jain of PMPK Financials says, “I talk to them about their spending habits. I first ask them if they thought Rs 1000 was a big amount, most say it isn’t. Then I ask them if they thought Rs 50000 was a big amount, usually they say it is. Then I set about explaining how Rs 1000 invested wisely today can turn to Rs 50000 in the future.  I help them start investing in young citizen accounts or in saving bank accounts.”


In a world of uncertainties women who choose to stay at home run a high risk. It is often necessary to sensitize them about the need for financial independence. While handling client affairs an advisor must also look into the financial well being of the spouse.

Ritesh Seth of Tejas consultancy who conducts IAPs and peer discussions for increasing the financial literacy of housewives says, “ I usually approach a client’s spouse and help them understand how instead of stashing away the money they save in tins and jars, starting an SIP or a saving account will help them. Seeing this advice work, many women recommend their friends to do the same.”


Staying financially independent is crucial especially during the post retirement stage. However, most people realise the importance of having a sound fall back option quite late in their career. As advisors one might often meet investors who want to start investing very close to their retirement.

Shrikant Matrubai of Good Funds Advisor says he usually advices such clients to get a medical insurance in place first. “Our medical needs are the highest post retirement. My first concern is to ensure that this need is secured. Then I insist on my clients having at least 60% exposure to equity, while the rest is dispersed in balanced funds and MIPs. This way I can ensure that at least their basic needs are met with ease,” he says.

While it is best to start investing early, advisors often need to sensitize people to the advantage of being financially secure. Housewives, youth and retired persons need the maximum financial support. As advisors, we need to ensure that they receive timely financial advice. This Independence Day let us help more people achieve financial freedom.

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