Journey To Financial Freedom

To continue our discussion about "Protecting Income against inflation and Creating Wealth", saving from monthly income and investing it in Mutual Funds is most important for our financial health. We need to build a diversified portfolio of different types of Mutual Funds which will protect our hard earned money and will work for us to create wealth. Before we start, please understand "Why Mutual Funds?" in my previous blog which has basics about "Protecting the Income" before we start "Creating Wealth". Click here to read the Basics of Personal Finance   Moving on, First, Lets understand the types of mutual funds - 1. Equity Funds 2. Equity Linked Saving Schemes (ELSS) 5. Balanced Funds 4. Debt Funds 5. Thematic Funds 6. Others 1. Equity Funds: Equity Mutual funds invests your money in Equity markets which means they come with as much risk as the stock market but give better returns in long term. Though Equity MFs invest in equity markets, the ri...

Hello..a few years back I was completely unknown to this word 'financial planning' till the time I was taught how simple and easy it is to achieve my financial goals by doing small,regular and disciplined savings and investments,to achieve financial security and of course financial freedom!                I was always wondering why I was not able to save even 10% of my salary by the end of month, even with the salary hike next year I started spending more which led to the same result- No savings! This was due to two major reasons- After doing all investments given in section 80C for tax savings, I thought this is it! No more savings required No planning, and of course more money I see in my account, more I spend :)               But not anymore...with the small amount kept aside every month and parking it in safe investment instruments, I feel more secured and now I spend rest of the money with...