We all have come across the age old saying – "A penny saved is a penny earned". Not only do we work towards earning and saving money, we channelise the savings towards achieving the desired financial goals.
The bottom line – to be financially independent, the first thing one needs to do is identify goals. It then becomes imperative to ascertain the time required to achieve that goal. Step three is to determine the amount required to realise this goal at a future time.
Once these steps are followed, the next critical factor is to plan towards realisation of these goals. A goal without a plan is merely a wish and in this fast moving world, it is not necessary for wishes to come true. For example, buying a house is a wish, but buying a house after three years is a specific goal and ascertaining the amount needed converts it into a financial goal.
