Monday, August 8, 2016

Control the Urge to Splurge to Become Financially Free


Can we use money from mutual fund for home loan repayment?

The answer is definitely a BIG NO. You cannot disturb your mutual fund investment to repay the home loan instalments.
Loan obligations should be met only out of your regular income (Active Income) and certainly not by selling or disposing of any investment and certainly not by selling off stocks or mutual funds, which generate spectacular results in the long term.
Taking any loan, including a home loan is not advisable. Even if a home loan is taken, it should be a small part of one’s regular active income like salary or business income, so that a situation shall not arise that one has to consider disposing off another asset to repay the loan. Therefore please avoid repaying EMIs of your home loan by selling mutual fund. If you own any other idle immovable property try to dispose off that property and try to extinguish or reduce your home loan burden. In case you have any other alternative, then there is no choice really, is it not?
If you keep the investments in shares, mutual funds and exchange traded funds (ETFs) undisturbed for very, very long periods like 30–40 years, they can produce really fantastic results, by the operation of the law, ‘Miracle of Compounding’.

So, please try to avoid disturbing your mutual fund for repayment of home loan.

Low Lifestyle Costs and High Passive Income Lead to Financial Freedom

Low Lifestyle Costs and High Passive Income Lead to Financial Freedom.

Financial Freedom is the most sought after and at the same time elusive condition in the world. But is financial freedom so unattainable actually?  This post, a slide briefly depicting the formula or equation actually, postulates that if I keep my lifestyle simple and enhance my passive income streams I will be able to attain financial freedom. This post is an integral part of a closely knit group of posts/ articles that explain the various related ideas and ingredients which I have explained briefly in this post and have provided links to other articles for detailed elucidation. 

What is Financial Freedom?

Financial Freedom means a financial condition where an individual can enjoy life without bothering about working for a living or taking up job or profession or occupation to support a certain personal lifestyle.

Low Lifestyle Costs and High Passive Income Lead to Financial Freedom.

Importance of Keeping Lifestyle Costs Low

Meaning lifestyle can be defined as the habits, attitudes, tastes, economic level, etc., that together constitute the mode of living of an individual. The focus phrase is economic level. Marketers out there are ever enticing us with products, luxuries, aspirations, deals and offers - attempts to make us part with our money and thicken the wallets of their organisations/ clients. However in order to attain financial freedom, we need to live a simple life.

What is Passive Income?

Passive or residual income is the income that accrues to an individual without that individual physically or mentally exerting any efforts to earn that income. Examples are rent, interest, dividends and royalty.

Formula for Financial Freedom

Create passive income streams through hard work, maintaining a simple lifestyle and prudent investing and attain financial freedom.

Links to Related Ideas and Detailed Descriptions


Financial Freedom is a wonderful gift one can have but at the same time is elusive. Financial freedom is surely and certainly attainable by my creating passive income streams, keeping my lifestyle simple.