Most people start investing in stocks and even mutual funds because something triggers them. Usually it’s the rising market, friends and relatives, tax saving and money lying idle in the saving accounts. And if you were to ask them why they are investing in equity, the answer is to earn higher returns. While that is necessary it cannot be the reason, the purpose, the goal of investing. But in the absence of clarity of what you want to accomplish by investing, returns overshadows everything. You investing becomes the curious case of the tail wagging the dog. Remember Alice in Wonderland and this chat between Alice and Cheshire Cat:
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
“–so long as I get SOMEWHERE,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”
Most people start investing without knowing where they want to get to. Financial Freedom sounds like a good goal to have, everyone wants that but it is not an off-the-shelf product that you can acquire. Financial Freedom means different things to different people; and you need to find out what it means to you. What do you need to have, to do, to be to say confidently that you have achieved Financial Freedom? Until you define this, have clarity about it, describe it adequately and answer, what exactly do you want out of everything that you want, you are going to be dissatisfied with you end up with. More so because financial freedom does not mean you do nothing once you have the money to pay for all the things you want; it means you are free to choose what you want to do with your time.
Answering these questions is a journey of discovering your self and what you value. It is best to approach it as a treasure hunt, an exciting adventure. Are you curious to find your answer to What do you need to have, to do, to be to say confidently that you have achieved Financial Freedom? Then read this section and do what it recommends. You answers may amaze you, certainly en-lighten you about yourself.