Achieving Financial Independence: How to Celebrate Independence Day Everyday

As India celebrated its 78th Independence Day, it’s a moment to reflect on the nation's Journey from colonial rule to a dynamic and diverse democracy. Beyond political and social freedoms, being financially independent is also a key aspect of personal and national growth.

Meet Raj, who recently started his first job earning Rs. 50,000 Per month. Excited with his newfound Independence, he splurged on a swanky rental apartment with monthly rent of Rs 25,000 and set aside Rs.20,000 for Groceries, Transportation and other Miscellaneous expenses. He managed to save 5,000 each month. However, when his bike needed repairs costing Rs 15,000 his minimal savings left him stressed and anxious and he ended up borrowing money from his friends. This wake-up call led Raj to re-evaluate his spending habits. He downsized his apartment to a monthly rental of Rs 15,000, set aside Rs 3,000 Monthly for emergency fund, and began Investing Rs 7,000 each month. Over time his disciplined approach paid off, giving him peace of mind and a secure future.

But what being financially independent actually means?

Financial Independence provides you the freedom to make choices about how to spend your time, pursue your passions and live life on your terms. But Financial Independence can mean different things to different people.

Let’s look at a few examples.

To build a Retirement Corpus
To save for a Contingency Fund
Wealth Generation
To buy your dream house
Going Debt Free
Liberty to go after your aspirations

The list can go on. The key takeaways from these examples are that:

There is no one definition of financial Independence as the idea of it differs from person to person and situation to situation.
Achieving financial Independence gives us a sense of fulfilment.

Can we quantify the money required to achieve Financial Independence?

While there is no single definition of ‘Financial Independence’, a simple definition would be to have enough money (savings and investments) to lead a good life (meeting needs and wants of the family). But, many of us are not aware as to how much money is sufficient enough.

A few things to keep in mind while assessing the amount of money for Financial Independence:

Current monthly expenses of the family (needs)
Your current lifestyle and the estimated amount of money you will require to upgrade it (wants)
Dreams you want to achieve in your retired life. (this may also include future needs)
Your current wealth (your cushion)
Expected inflation (your enemy)
Expected returns from your investments (your friend)

Since there are multiple factors to consider, it is ideal that you consult with an investment expert to better understand your route to financial independence.

A vehicle you can consider to achieve Financial Independence

HDFC Retirement Savings Fund

If a sufficient retirement corpus can give you financial independence, you may need to plan for it years in advance. Regular and habitual investments, preferably through SIPs, into HDFC Retirement Savings Fund could enable you to embrace retired life with confidence.

You can choose between 3 plans depending on your age and risk profiles:

Achieving Financial Independence: How to Celebrate Independence Day Everyday

Investments in the scheme qualify for benefits U/s 80 C of the Income Tax Act, 1961. Trying to achieve financial Independence without planning is like appearing for an exam without preparation and hoping to score good marks. So, consider start a sizeable SIP today in HDFC Retirement Savings Fund.

Financial independence is not just a goal—it’s a journey that requires diligence, discipline, and strategic planning. As India celebrated it's 78th Independence Day, let’s also commit to the pursuit of financial freedom. It’s a celebration of our ability to make choices, to live life on our terms, and to secure a future that’s not just prosperous, but also free of burden and stress.