This Diwali, the atmosphere is blinded by the brilliance of lit happiness all around us. For the sake of our environment, let us avoid using dirty firecrackers, fancy rockets, and high-decibel explosives on the day of this much-loved festival of lights.
Let us instead debunk the myths and misconceptions about finance and investing, paving the route for our financial independence and fulfillment.
- Retirement-
The most difficult aspect of retirement is an illusion. It appears far away until it unexpectedly knocks on your door one day. The sooner you start, you can be more prepared.
As a result, developing a saving habit as well as investing in various asset classes by one’s financial means allows one to take advantage of the compounding effect, which causes money to expand exponentially over time.
- Life Expectancy-
Given a student life span of 25 years and a working life span of 60 years, the number of years after 60 is significant and must be planned for.
The average life expectancy is gradually increasing throughout the world, thanks to breakthroughs and developments in contemporary health and tech-driven comforts. Because we will live longer, we will need to save and invest intelligently to live life on our terms.
- Standard of Living-
The term “standard of living” refers to how we live, and how the game of money – earning, spending, saving, and investing – affects our lives.
The notion of Quality of Life is closely tied to the standard of living, and it refers to an individual’s feeling of well-being, physical and psychological health, financial independence, and social standing.
Although they are subjective notions, our financial actions have a significant influence on them, which is why financial literacy is so essential.
- Life Insurance-
Life insurance is a critical safeguard for you and your loved ones. Given the unpredictable nature of life, you must protect your loved ones by purchasing life insurance.
Never make the cardinal mistake of confusing emergency funds with insurance. Liquidity is the essential term when it comes to emergency funds since it allows for quick withdrawals as needed.
When it comes to life insurance, the phrase “protection” comes to mind, since we need to ensure the future of our dependents while we are still alive.
- Medical Expenses-
It is a well-known truth that disease is related to one’s age. As a result, healthcare expenditures rise in lockstep with age, especially in cities and towns where stress has a significant influence on people’s health.
As a result, it is critical that we include medical expenditures in our financial plans and budgets and put aside a fund for medical costs that is separate from retirement savings and investments.
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