‘Dreams’ is one word but is more powerful than anything else to make you thrive.

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We all have dreams.

These dreams help us focus all our energy. And guide us when we are lost. And lift us when we are down. And bring hope when we are passing through a dark tunnel. We live to make these dreams come true. Most of the time, to make our dream our reality, we need financial backing, we need money. When there are situations that hinder the financial backing, we feel dejected. We start doubting ourselves, we start questioning our abilities as we fear we may have to compromise our dreams.

Build the spirit of Financial Freedom and shape your dreams into reality. Here is the 6D approach that will help you achieve that:

1. Define your Dreams – “A heart without dreams is like a bird without feathers.” -Suzy Kassem. Whether your dream is to buy a vehicle or to go on vacations, to buy a house or to start a business, to do philanthropy, or to build a legacy; you must define them clearly. Once you have listed your goals, define the amount required to meet each of the goals along with the year in which you want to achieve this goal. It is very important to be realistic in this step.
2. Design your Plan – “A goal without a plan is just a wish” – Antoine de Saint-Exupery. You could choose to design a plan on your own using some online tools available. These are called simple goal-based planning techniques that can be used if you have one or two simple goals. Else, you could take the comprehensive planning approach by getting your Financial Plan drafted by a professional. This would cover 5 major aspects of personal finances – a) Goal Planning b) Investment Planning, c) Insurance Planning d) Retirement Planning, and e) Tax & Estate Planning. This approach provides you with a blueprint of your finances till the time you could be alive – of course, based on certain assumptions. It also gives you a reality check along with an action plan to go and achieve your dreams.
3. Drive your actions– “Dreams don’t work unless you do.” John C. Maxwell. A financial plan is a document of possibilities, it only tells you where you stand and what actions need to be done to achieve your dream. Ultimately it all depends on the act done to make the dream a reality. If actions are not aligned to your plan then that would impact your dreams. Actions may include buying risk covers, starting your SIPs (systematic investment plans), tax savings, etc. They may seem small but non-execution could create a huge and sometimes irreversible impact.
4. Pay off your Debts – “Debt creates stress, stress creates behaviours that don’t lead to happiness.” – Seth Godin. To make the dream a reality, EMI i.e. equated monthly installments seem to be a big aid. Yet, if the cash-flow is not planned well then it can get tough to take care of any EMIs. While looking at EMIs always compare it against your take-home income per month. At no point, your EMIs should be more than 30%-40% of your take-home monthly income else sustaining the same will get very difficult. Always plan to pay your debt off before your retirement. Never drag EMIs in the post-retirement phase.
5. Check for Deviations– “Never has man reached his destination by persistence in deviation from the straight path.” – Mahatma Gandhi. It is important to have periodic reviews. To check what you planned for is still relevant to you or not. To check if your actions are aligned to the plan or not. To check if you are on track or not. At times, you may be required to redesign your plan due to your changing situations or change in your goals. You must check the deviations in your actions versus your plan. This is the time to reflect and realign or reset.
6. Live your Dreams – Finally, you will get to the point where you “Don’t dream your life, live your dreams” – Anonymous. Continue to keep a tab on your cash flow and your net-worth for there would be another dream around the corner waiting to be achieved.

The spirit of financial freedom leads you to be happy and humble. Do not get overwhelmed and feel invincible. For it is your dedication and determination that provide independence and not your doubts or deferments.