No More Mondays: Build Your Escape Plan with These 6 Steps
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No More Mondays: Build Your Escape Plan with These 6 Steps

Hey there! Are you ready to take control of your financial future and live a life of financial independence? Great! I'm here to share with you some exciting steps that will help you pave the way towards financial freedom and success. Get ready to explore new possibilities and take charge of your financial destiny with these six simple steps to living a financially independent life. Let's get started!

 Purchase the house or Rent it

As a young adult, you might have heard from everyone around you that purchasing a house is a smart investment. However, it is important to carefully analyze the decision with all the details before making the final call. Let's talk about the numbers and other important factors in detail.

Imagine you find a perfect house with a purchase price of AUD AUD 178,900. To buy this house, you will need to pay AUD 357 out of your pocket and take a loan of AUD 14,312 from the bank. The bank's EMI will be AUD 1,290 for 240 months. This might seem like a good deal in the beginning, but let's look at the other side of the coin.

If you choose to rent a house instead, you will have the flexibility to move to a new place whenever you want. Moreover, you can save the EMI of AUD 1288 per month, depending on the rent of the house, which means you'll be able to save around AUD 900 every month. That is a significant amount that can be used for other investments.

Now, let's talk about the exciting part. If you save AUD 900 for 240 months, you can earn a profit of approximately AUD 216,000! That's right; you can make a fortune by investing the money you would have spent on a house purchase.

Additionally, as a young adult, you might be changing jobs frequently or moving to different cities for new opportunities. If you purchase a house, you'll be stuck in one place, limiting your options. On the other hand, if you rent a house, you'll have the flexibility to move to a new location without any hassle. Imagine having the freedom to shift immediately and save your commutation time!

In decision, it is vital to weigh all the options and factors before making a decision to purchase or rent a house. Instead of making your capital and time a stress by purchasing a house at a young age, it's better to explore and rent a house that suits your needs and requirements. Your first priority should be to live near your workplace rather than purchasing a house.

Shared Economy

If we look back at the old days, catching a taxi, cab or auto was a daunting task. It used to involve waving your hand and calling for a ride, only to be met with drivers who wouldn't listen to you, misbehaved with you, and charged you exorbitant prices. However, with the advent of Ola and Uber, the experience of taxi services has undergone a complete transformation.

Today, these ride-hailing services provide a seamless and hassle-free experience to commuters. They have made it possible for people to book a ride with just a few clicks on their smartphones, without having to worry about any of the issues that plagued the traditional taxi service industry.

In most countries, owning a car can be a significant financial burden. Not only does it involve paying for the car itself, but there are also additional expenses such as EMI, insurance, maintenance, depreciation, and driver fees. Even if your car is sitting idle in your garage, you could be paying anywhere from AUD 700 to 5000!

This is where Ola and Uber come in. They provide a cost-effective alternative to owning a car. By using their services, you can avoid the hassle and expense of owning a car and instead, enjoy the benefits of the shared economy.

So, if you're tired of dealing with the financial burden of owning a car, it's time to switch to Ola and Uber. They provide a reliable, safe, and affordable option for your daily commute. Say goodbye to the stress of owning a car and embrace the convenience of ride-hailing services!

Power of Refurbished

Are you looking to purchase a car or laptop but don't want to break the bank? Well, you're in luck because there are ways to save money while still getting a high-quality product.

Let's start with cars. If you're in the market for a car, you can save a substantial amount of money by purchasing a used car. For instance, if you purchase a 4-5 year old Honda City in perfect running condition, then that same car that originally cost AUD 35000 will only cost you AUD 10000. By purchasing a used car, you get a depreciated value which means you get it at a much lower price. Cars24 is a popular choice for people looking to buy second-hand cars because they offer amazing deals on used cars.

Now let's talk laptops. A new laptop can be quite expensive, costing anywhere from AUD 300 to 900 AUD. But there's another option - refurbished laptops. Refurbished laptops are pre-owned laptops that have been restored to their original condition. Online stores offer a wide variety of refurbished laptops at a fraction of the original cost. You can find a laptop that would have originally cost AUD 1200 - 4000 AUD for as little as AUD 300 - 900 AUD AUD. This means you get almost the same thing as a new laptop at a much lower cost.

In finding, if you're looking to save money on a car or laptop, then purchasing a used car or a refurbished laptop is a smart choice. You can get a high-quality product at a lower price, and in some cases, you can even get a better deal than buying new. So, do your research and take advantage of these amazing deals!

Power of Compounding

Do you want to learn more about the power of compounding? Allow me to explain it in detail with the help of a Systematic Investment Plan (SIP).

SIP is an investment plan that involves investing a fixed amount of money at regular intervals. It is a disciplined approach to investing that eliminates the need to time the market. The key to the power of compounding lies in the fact that the returns earned on investments are reinvested to generate more returns. 

Let's consider an example to understand this better. Assume that you invest AUD200/month for 20 years. This means that your total investment at the end of 20 years would be AUD 48,000. Now, if your investment grows by just 12% and the stock index in our country increases by 18-20%, your investment value after 20 years would be approximately AUD 60,000. 

This is the beauty of compounding. The longer you stay invested, the greater the returns generated on your investment. By investing regularly through SIP, you can take advantage of this phenomenon and grow your money in a systematic and disciplined manner.

So, start planning your life goals today and invest in SIP to enjoy the power and wealth that comes with it. Remember, the key to successful investing is consistency, patience, and a long-term horizon.

Never Borrow to Consume

It's important to be financially responsible and make informed decisions when it comes to borrowing and spending money. In the US, it's common for people to use credit cards and loans to make purchases, but in India, the interest rates are much higher at 16-18%. This means that borrowing money to consume is not a wise decision. Instead, it's better to consume from your own savings and avoid unnecessary debt.

However, if you do need to borrow money, it's important to make sure that you benefit from it. For example, let's say you borrow a certain amount of money and have to pay interest on it. Your investment should be such that you earn more than the interest you have to pay from it. This means that you should invest in something that has the potential to generate a higher return on investment than the interest rate on your loan.

By making smart investments and avoiding unnecessary borrowing, you can take control of your finances and avoid getting stuck in a cycle of debt. So, the next time you consider borrowing money, make sure you're doing it for the right reasons and with a solid investment plan in place.

Learn the skill

The power to learn any skill and turn it into a profitable business is within your reach. Whether you're interested in digital marketing, technology, investment planning, finance, or any other field, you can acquire the knowledge and expertise you need to succeed. 

In today's world, people are hungry for knowledge and content. This presents a unique opportunity for you to learn new skills and capitalize on this demand. By investing time and effort into learning, you can offer valuable services to others and build your own brand. 

Take digital marketing, for example. You can learn all about social media, SEO, email marketing, and content creation. Armed with this knowledge, you can provide your services to businesses and individuals who need help with their online presence. 

Similarly, if you're interested in finance, you can learn about budgeting, investing, and financial planning. You can then use this expertise to offer personalized financial advice to others who may be struggling with their finances. 

The possibilities are endless, and the best part is that you can learn at your own pace, on your own terms. With the right mindset and determination, you can turn your passion into a thriving business while helping others along the way. So, start learning today and unlock your full potential!