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Earlier, people considered 1 crore rupees as a symbol of 'financial freedom', but now rising inflation and changing lifestyle have changed this thinking. So know why 1 crore is no longer enough to set life.

There was a time when it was a common belief among working people that if they have saved 1 crore rupees, then their future life will be tension free. Generally, people believed that this figure of 1 crore rupees is the last stage of 'financial freedom'. But now times have changed. Actually, inflation, increasing lifestyle expenses and uncertain environment have changed this old thinking. Actually, in today's time, saving only 1 crore rupees is no longer enough, in fact it can be just a stage, not your destination for tomorrow.

Effect of inflation: How much is 1 crore worth?

If we believe, the thing which was available for 1 crore rupees 25 years ago, its price has increased many times more today. So, assume that if the average inflation rate remains 5%, then after 25 years, the value of 1 crore rupees today will remain around 29.53 lakh rupees. That is, the work which can be done in 1 crore rupees today, may require 3.4 crore rupees after 25 years. This calculation makes it clear that just accumulating a big figure will not work.

Why has the thinking changed?

Actually, it is important for today's generation to think that their target is not only to accumulate one crore rupees, but to create a portfolio that can meet the future needs. Actually, there are many reasons behind this-

Rising inflation:

The cost of education, health and lifestyle is increasing rapidly. Giving a good education to a child or providing good health care to the family has now become very expensive.

Uncertain career:

Nowadays the safety of a job is not the same as before. In such a situation, depending on just one job is risky.

Lifestyle changes:

Nowadays people spend more on travelling, buying gadgets and better lifestyle. This lifestyle affects inflation as well as financial targets.

Health related risks:

A major medical emergency can wipe out all your savings, so only the health insurance provided by the office is often not enough.

New formula for financial freedom

To change the old dream of '1 crore', everyone will have to adopt a smart formula. It focuses on many aspects instead of focusing only on a big figure-

1. Multiple income sources:

Do not depend on just one job. Apart from the job, create extra options of earning through freelancing, investment or any other way.

2. Adequate emergency fund:

An emergency fund equal to at least 6 to 12 months' expenses should be maintained. This will help you in case of job loss or any emergency crisis.

3. Choose the right investment:

It is difficult to beat inflation by just keeping money in fixed deposit (FD). Invest in other options like SIP.

4. Insurance:

You must take adequate health and life insurance for yourself and your family. Health insurance should be at least Rs 25-50 lakh.

5. Start investing early:

The sooner you start investing, the more you will get the benefits of compounding, you can start SIP even with a small amount.

6. Keep learning:

Financial literacy is very important. Being aware of inflation, tax and investment will help you take better decisions.

It is clear that financial freedom does not mean just saving Rs 1 crore, but it is a continuous journey. This is a situation where your money works for you, and you don't have to rely solely on active income for your needs. With the right mindset, discipline, and smart investments, you can achieve your target of financial freedom. (Note: This article is for information purposes only and should not be construed as investment advice in any way, recommend consulting financial advisors for investments)

5 FAQs with Answers

Q1. Is Rs 1 crore enough for financial freedom in today's time?

No, Rs 1 crore is now just a starting target due to inflation and rising expenses.

Q2. For how many years can Rs 1 crore be enough?

It depends on your lifestyle and spending pattern, but it is not enough for a long time.

Q3. How much fund should one have to achieve financial freedom?

Different financial experts believe that a corpus of Rs 3-5 crore may be necessary.

Q4. What is the impact of inflation on financial freedom?

Inflation reduces the value of money over time, which can quickly deplete the savings.

Q5. What steps should be taken for financial freedom?

A large corpus should be created through SIP, mutual funds, retirement planning and diversified investments.

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