Would love to hear your thoughts
My Perspectives
My perspectives on whether you should have that FD or not are summarised below.
Aim
As I see it, the aim should be to become wealthy and financially independent i.e. your monthly income (without working (i.e. secondary income)) should be more than your monthly expenditure, after you already have your own well-furnished house, car, etc.
Some Important Considerations in Personal Finance
To achieve the above aim, important facets to be considered over the long term (i.e. from say age 22 to say age 50 or earlier if possible) are:-
1.
Diversification. Have investments in
equity, gold, real estate, FD, PPF, et al - the whole basket. Gives stability to financial moorings.
2.
Emergency Fund. Plan for minimum 6 months' salary as cash in savings account as your emergency kitty.
3.
Health Insurance. It's a must have to cater for health insurance as per your age, health and future requirements.
4.
Life Insurance. You must have life term insurance of 25x your annual income if you have family. If single/plan to remain single, then dispense with it.
5.
Secondary Income. Plan for your secondary income (from profits in markets, FD interest, rent, etc) becoming more than your monthly expenditure.
Caveat
Remember, ideally no help from anyone or minimum help from your parents or friends - even if takes a long(er) time. The journey of becoming wealthy (i.e. your monthly secondary income being more say 1.5x times your monthly expenses, apart from you having 'basic' assets - like your own house, car, etc.) whilst facing all the odds and struggles is a huge accomplishment and a source of pride and contentment. So, have a figure in your mind as per your lifestyle needs (eg - Rs 10 cr at age 40, or Rs 20 cr at age 50, etc). Then go for it. Alone. Like a Tiger.
Note
I personally follow and implement most of these tenets in my life. So far, it's been a good journey.
Conclusion
So, based on the aforesaid insights, you can take a considered call. If you don't have any FD thus far, you can go for it. If you already have, you can re-assess your financial framework. It's your call. Make it count well.
Parting Shots
So, in whatever stage of your life you are, you must have a finger in all the above-mentioned pies and strive for becoming wealthy wherein all your monthly expenses will come from your secondary income and then you will not be dependent on your salary aka you will be financially independent.
Hope this helps.
🙂
