Financial freedom is a goal that many of us aspire to achieve. But how much money should you have saved by the age of 40 in India?
To answer this question, you must first understand your current financial situation and the amount of money you need to maintain your lifestyle. This means that you will need to calculate your annual expenses and multiply it by 20. This will give you an estimate of the amount of money you need to have saved by the age of 40.
For example, if your annual expenses are ₹7.20 lakhs, then you will need to have saved ₹14.40 lakhs a year to maintain your lifestyle. By this calculation, you should have a little over ₹4.30 crores by the age of 40 to attain financial freedom.
However, saving alone will not help you reach that mark unless you start investing in profitable financial products today. You can start by investing in stocks, mutual funds, and other equity-based products. This will help you generate higher returns over the long term.
You can also invest in fixed-income products such as bonds and fixed deposits. These products provide a steady stream of income and are relatively low-risk investments. You can also consider investing in real estate and gold to diversify your portfolio.
Apart from investing, you should also start budgeting and tracking your expenses. This will help you identify areas where you can save money and invest it in profitable financial products.
Finally, you should also create an emergency fund. This fund should be equal to at least 6 months of your annual expenses. This will help you cover any unexpected expenses and protect your financial future.
By following these steps, you can easily achieve financial freedom by the age of 40 in India. However, it is important to remember that the amount of money you need to save will depend on your current financial situation and lifestyle. So, make sure to plan accordingly and start investing today.