By Moksh Khatana Financially free —the dream of living life on your own terms without being burdened by financial stress—is achievable within five years if approached strategically. In this article you read about finance freedom means how you can achieve your financial freedom 1. Define What Financial Freedom Means to You Financial independence isn’t just about having money—it’s about having choices. Determine your “freedom number”, which is the amount of money you need to cover all expenses without relying on a job. 2. Increase Your Income Streams The fastest path to wealth isn’t just saving—it’s earning more. Consider: High-Income Skills: Learning skills like coding, digital marketing, or investing can boost your earning potential. Side Hustles: Freelancing, consulting, or selling products online can provide extra income. Investing Wisely: Stocks, real estate, and other assets can help money grow passively. 3. Master the Art of Budgeting & Saving Live Below Your Means: Keep expenses minimal and avoid lifestyle inflation. Automate Savings: Set up automatic transfers to investment accounts. Cut Unnecessary Expenses: Evaluate subscriptions, dining out, and impulse purchases. 4. Invest & Grow Your Wealth Money sitting idle in a savings account loses value over time. Smart investments can grow exponentially: Stock Market: Index funds, ETFs, and dividend stocks offer long-term returns. Real Estate: Rental properties can generate passive income. Business Ownership: Building a company or investing in startups can yield high rewards. 5. Eliminate Debt Debt is the biggest barrier to wealth. Strategies to become debt-free: Use the Snowball Method: Pay off small debts first for momentum. Negotiate Lower Interest Rates: Call lenders and ask for better terms. Avoid High-Interest Loans: Credit card debt and payday loans can trap you. 6. Build an Emergency Fund Having 6-12 months’ worth of expenses saved prevents setbacks from unexpected financial hits. 7. Develop a Wealth Mindset Your beliefs about money shape your success: Read Financial Books: Gain insights from experts. Surround Yourself with Financially Smart People: Learn from those who are financially successful. Stay Disciplined: Stick to your plan and avoid distractions. Final Thoughts Financial freedom isn’t reserved for the wealthy—it’s accessible to anyone willing to be disciplined, strategic, and persistent. Five years may seem ambitious, but with focus, dedication, and smart money decisions, it’s absolutely possible. Are you ready to start your journey today? You can read my other article too https://apnapaissa.com/best-finance-movies/ https://apnapaissa.com/stock-ma/ Refrence of this article from https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp you can watch this video too https://www.youtube.com/watch?v=DMEVPXe8QSA
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How to Learn Stock Market Easily in 2025
author Moksh Khatana The stock market is a marketplace where investors buy and sell shares of publicly traded companies. It plays a vital role in the economy by allowing businesses to raise capital and investors to potentially grow their wealth. Stock prices fluctuate based on various factors, including company performance, market trends, and economic conditions. How to Learn Stock Market easily : Our other article you must read https://apnapaissa.com/what-is-inflation/ https://apnapaissa.com/currency-printing-limits-explained/ Focus on investing for the long-term Stock market investments have proven to be one of the best ways to grow long-term wealth. Over several decades, the average stock market return is about 10% per year. However, remember that’s just an average across the entire market — some years will be up, some down and individual stocks will vary in their returns. For long-term investors, the stock market is a good investment no matter what’s happening day-to-day or year-to-year; it’s that long-term average they’re looking for. The best thing to do after you start investing in stocks or mutual funds may be the hardest: Don’t look at them. Unless you’re trying to beat the odds and succeed at day trading, it’s good to avoid the habit of compulsively checking how your stocks are doing several times a day, every day.
RBI and Currency Printing Limits: Explained
by MOKSH KHATANA https://www.youtube.com/watch?v=DMEVPXe8QSA When the economy badly needs support in times of crisis, one question circulates like wildfire – “Why can’t the government ask RBI to print tons of money?” Well, here’s why. A crisis tests the robustness of an economy. Consider 2020, for instance. Once the virus began its hunting spree, the wrecks of the ship started crying out. The entire nation was in the grip of the deadly virus. Health infrastructure was utterly out of place. Companies laid off their employees. Migrant labourers were forced to return home. And there was little indication that the virus would go underground in less than a year. Sustaining for so long without an active income source while meeting the family’s daily expenses and healthcare costs would be a tough nut to crack for a majority of the population. Naturally, it was on the government to step up and pull the nation out of the crisis. It had to loosen its purse strings completely. But it actually couldn’t have done much without help. who can actually help the government? Why Does the RBI Print Money? People often raise the question that if the government earns revenue in the form of taxes, why can’t it just come out and spend it all? Well, it actually does (judiciously or not, that’s different). And sometimes its expenditure exceeds the revenues, as we name it – Fiscal Deficit. The government aims to keep the deficit under the target of around 3.5% of GDP (but for FY23, the target is set at 6.4%!) And as a matter of fact, the actual figures are expected to be significantly more this year. But the government still has to go out and spend – on health, on people, on hospitals, on oxygen supply, on vaccination drives, and whatnot. With revenues curbed due to the lockdown, the government gets into a tough spot to manage it all alone. So, the only way out is to borrow and spend. Now, the government can borrow from several sources – from people, from private investors, foreign countries, etc. However, in times of crisis, nobody is really willing to lend. So, now what? The government knocks on the door of the ‘lender of last resort‘—the RBI. However, borrowing from the RBI is not like borrowing from others. People lend you the money they’ve saved, the money that was already in the system. But if the RBI wants to lend, it has to print new money, like money that didn’t exist 10 minutes ago! This is called ‘Monetizing the deficit’. The thing is, this increases the money in circulation. And why is it exactly a pain point, you ask? Perils of Printing Money Suppose only two persons are residing in a country with an income of ₹10 pa each, and the only good produced in the economy is 2kg of rice. At present, suppose 1kg of rice costs ₹10. So, both the persons earning ₹10 each can buy 1kg of rice each and feed their families. Imagine, all of a sudden, the government starts printing more money, and then each of them has ₹20. But the supply of rice remains the same, ie, 2 kg. With more cash in hand, the demand for rice has gone up (each of them can now afford the entire 2 kilograms of rice). The shopkeepers know the fact that now each of them can shell out ₹20 for rice. So, to meet the entire demand, they’ll double the price of rice. So, now a Kg of rice would cost ₹20! And that’s how more money can lead to a rise in prices, besides other effects. Therefore, the printing of money should always match the total production of goods and services in the country, or else inflation can destroy the economy. Major factors to be considered while printing new currency Inflation Inflation is the increase in the prices of goods and services over time. It’s an economic term that means you have to spend more to buy a gallon of milk, fill your gas tank or get a haircut. Inflation increases your cost of living as it reduces the purchasing power of each unit of currency. Excessive money in supply can actually lead to ‘hyperinflation‘. History says it all. In the year 2008, Zimbabwe witnessed 2,31,000,000% inflation! Meaning a sweet that cost them $1 in 2007 would require $231 Mn in 2008. Ridiculous, isn’t it? Gross Domestic Product GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period, usually a year. GDP growth rate is an important indicator of the economic performance of a nation. GDP is another critical factor that affects the amount of money to be printed in the economy. The government prints money of the same value as its value has gained into their economy or, in a simple way, GDP. So, rising economic productivity – GDP increases the value of money in circulation since each currency unit can later be traded for more valuable goods and services. The point worth noting is the government gives people the same amount of physical currency as a medium of exchange as the value it is getting in return from GDP and inflation. Minimum Reserve System Currency issued in the country relies upon the reserves RBI has with it after meeting all its liabilities. Now, by reserves, it means the following: 1. Bullion reserves 2. Foreign exchange reserves 3. Balance of Payment (BOP) only receivables. In India, currencies are supplied by the RBI with the backing of bullion reserves, foreign exchange reserves (foreign currencies), and Balance of payment(only receivables). For the new issue of currencies, the RBI follows the Minimum Reserve System at present. The (MRS) Minimum Reserve System has been followed since 1956. Under MRS, the RBI has to keep a minimum reserve of ₹200 crore comprising gold bullion gold coin and foreign currencies. Out of the total ₹200 crore, ₹115 crore should be in the form of…
What is Inflation?
“Mehangai kitni badh gai hai! Humare samay me ₹10 me petrol milta tha”. Ever heard your grandparents say something like this? I certainly have. And like most people, I used to think that this “badhti mehangai“—or inflation—was a villain in the story of our economy. But it turns out I was wrong. Inflation isn’t actually the bad guy; it’s more of a necessary evil or even a misunderstood hero in disguise. Yes, inflation eats into our purchasing power, but it’s also a sign of a growing, evolving economy. We’ll see proof of it throughout the article. So what if there was no inflation? Would you be able to buy a whole litre of petrol for ₹10? Let’s take a look at this alternate universe and find out. But First, What is Inflation? When you hear “5% inflation rate,” it means, on average, prices are 5% higher than they were a year ago. So, if you bought something for ₹100 last year, it would cost you ₹105 this year on average. This happens because demand for things grows faster than supply, or the cost of making stuff rises, like wages or materials. Inflation is the gradual increase in prices of goods and services over time. You can simply call it the reason why a cup of tea that cost ₹5 a decade ago now costs ₹20. Every nation has its own inflation story. Let’s see a few examples. As of November 2023, Venezuela has an inflation rate of 283%, making everyday items astronomically expensive. While China has an inflation rate of -0.5% meaning prices have been falling slightly. India sits somewhere in the middle, with an average inflation of 5.3% over the last 6 years. Both these extremes come with problems. Too much inflation ( hyperinflation ) can make basic needs unaffordable, while too little ( deflation ) can freeze spending and stall economic growth. This rate of inflation is actually quite normal for a developing country. Since India’s economy is rapidly growing, frequent price hikes are almost inevitable. The Reserve Bank of India (RBI) has set an inflation target of 4% for India, with a tolerance of +/– 2% around it. This means that inflation can be as low as 2% or as high as 6% while still being considered acceptable. So, while inflation can feel like an annoying phenomenon, it’s actually a sign that things are moving forward. But what if inflation just stopped? What would that world look like? A World With Zero Inflation Imagine if prices stayed the same, year after year. This might sound like a dream come true. After all, who wouldn’t love to go back to 2003 when petrol was ₹33.49 per litre, and the price of 10 grams of 24k gold was just ₹5,600? But, this situation might not be as ideal as you may expect. Here’s how zero inflation will impact different aspects of the economy: a. Purchasing Power and Wages You might think a no-inflation world would be more stable, especially when it comes to purchasing power. It would mean that the value of your ₹10 would stay the same forever. That’s amazing, right? Not really. Let me tell you why. No inflation = No incentive for employers to increase your salaries. Which means no more pay hikes. With inflation playing a major role, India’s average annual income is increasing and is expected to rise by 9.8% in 2024. Imagine a world where your salary hasn’t changed in the last 20 years. Without inflation, the prices of things and your wages will be tightly locked. So, you can forget about improving your lifestyle through salary growth. And no more validation of a job well done in the form of appraisals either. b. Investments and Returns You probably didn’t know this, but inflation plays a huge role in the overall economy and investments. Generally, it is said that if you want to beat inflation, you should invest in the stock market. This is what incentivises you to take risks and innovate. Let me explain it with an example. Over the past 10 years, the Indian stock market has given annual returns of 10.9%. This rate is well above inflation, allowing investors to grow their wealth. However, this wealth would be of little value in a no inflation world. Why? Because companies wouldn’t have the same level of growth if prices and demand stayed constant. Know the Impact of inflation on the Indian Stock Market by reading this article. Real estate would suffer as well. In the past 20 years, Indian property rates have risen at an average rate of 6% each year. This means that a house bought in 2004 for ₹10 lakh is worth around ₹32.07 lakh in 2024. But if there were no inflation, that house would still be worth ₹10 lakh and no more. c. Borrowing and Lending: Usually, people don’t like the idea of borrowing money, but in a no-inflation world, it would be even less attractive. Usually, banks set interest rates based on inflation. So, for example, if inflation is 5%, then the bank might charge an 8% interest to cover inflation and make a profit at the same time. However, banks might have to reduce interest rates to near 0%, if there was no inflation. Which means little to no profit margin for lenders. And without the money losing its purchasing power or rising incomes, the real value of debt will not decrease. This means it will be harder for you to pay your debts and grow your finances overtime. How are Inflation & Interest Rates Related? Read the article to know that. d. Business and Economic Growth So much of our lives is governed by cost consciousness. We try to buy things at their lowest prices during sales or festival seasons, but if prices remain constant, people may delay spending, thinking, “Why buy now when we can buy it next year at the same price?” In India, inflation is the reason behind such huge consumer spending. This in turn feeds the economic growth of the country. As you can see, spurred by inflationary spending and…
The Tale of Tata: How a Trading Firm Became a Global Giant
In 1868, Jamsetji Tata set out with ₹21,000, a sum that might sound small today but sparked one of the biggest business empires in history. Today, it is a global conglomerate with over ₹13 lakh crore in revenue as of FY24, spanning 100 countries in 6 continents. The group boasts a total of 30 companies, 26 of which are listed, including TCS, Tata Motors, and Titan, and employs over 10 crore people. For over 150 years, Tata has been an influential force in shaping industries and communities. With a presence in 10 diverse sectors, including steel, automotive, hospitality, IT, chemicals, and even e-commerce, Tata stands as one of the world’s most expansive and influential businesses. But how did the Tata empire come to be? It was just built on more than numbers, profits, and acquisitions. Let’s take a closer look at this journey and find out how a textile company became a global conglomerate. Modest Beginnings: Tata’s Founding Story He believed business shouldn’t just chase profits but should also uplift society. His first big move? Setting up a cotton mill in Nagpur in 1877. To Jamsetji Tata, the textile industry was not just a business; it was a medium to enhance India’s industrial prosperity. During his foreign trips, he became increasingly convinced of the vast potential for Indian companies to challenge the British stronghold over the textile market. From 1880 to 1904, Jamsetji had 3 massive dreams for India which were way ahead of its time: Steel Plant: Jamsetji Tata recognised the critical role that steel would play in nation-building and economic development. Inspired by a lecture he attended in 1867, where British essayist Thomas Carlyle stated that “the nation which gains control of iron, soon acquires control of gold,” Tata was determined to establish a steel industry that could support India’s burgeoning infrastructure needs. The outcome was the establishment of India’s first integrated steel plant Tata Iron and Steel Company (TISCO) in Jamshedpur. This plant was not merely a business venture; it represented a significant leap toward industrial self-sufficiency for India. Reliable Electricity: “We must harness this water. We must turn it into power.” On his trip to the Western Ghats, Jamshetji was inspired by the flow of natural water sources in the form of rivers. He envisioned sparks generating from the flow and hence started Tata Hydroelectric Power Supply Company in 1910.Recognising the importance of reliable electricity for industrial growth, Jamsetji Tata envisioned a future where power would be accessible to fuel India’s development. World-Class Education: Jamshetji Tata had the vision of nation-building through educational upliftment. He realised that upskilling and informing the youth about the different processes (both practical & theoretical) would boost the nation’s growth. Hence, he made it his mission to contribute towards educating the masses, especially the ones who don’t have the resources to pay for it. He started by founding an institution and went up to forming trusts and sponsorship programs throughout the country. This practice is being followed after decades of the Tata Group’s foundation presenting strong founding ideals. It is no surprise that Jamsetji Tata is fondly remembered as the “Father of Indian Industry”. His approach was clear: businesses should give back. That’s why much of Tata’s profits are reinvested into trusts. Tata Memorial Centre (1941), Udaan, Lakhpati Kisan & MKRISHI are just some of Tata’s philanthropic initiatives. Today, over 66% of Tata Sons’ (Tata’s holding company) equity is held by philanthropic trusts, making Tata Group a global leader not just in business but in giving back. Even though Jamsetji passed away in 1904, his ideas lived on through his son, Dorabji Tata. By the early 1900s, under the leadership of Dorabji Tata, the group ticked off some major milestones: Tata Iron and Steel Company or TISCO (1907): The establishment of India’s first integrated steel plant worked phenomenally for the group and is now one of the top steel producers in the world. Yes, we are talking about Tata Steel (renamed in 2005) which is churning out a revenue of ₹2.29 lakh crore for FY24 and contributes over 25% in the group’s revenue generation. Inspired by the changing global trends and a heartiest wish to contribute to the Swadeshi Movement, Tata Steel was formed. He recognised that steel was foundational to industrialisation and essential for building infrastructure, machinery, and transportation systems. The firm is not only limited to big factories. A less-known fact is that Tata Steel UK’s coin currencies (including 1, 2, 5 and 10 penny coins) are made of Tata Steel. That’s not all! The Tata Group has been a cornerstone of India’s development, influencing everyday life through its diverse contributions across various sectors: All these aspects and more make Tata Steel the largest steel company in India, with an annual capacity of 21.6 million tonnes. The company is also the nation’s top steel exporter, with a record of 14 million tonnes of steel exported in FY24.Guess how much steel would it be? You can build at least 100 Eiffel towers (or even more) from it. Know the latest updates on Tata Steel Ltd., like Share Price Today, Market Cap, Price Chart, and Balance Sheet. Tata Power (1911): It kicked off with hydroelectric plants and is now India’s largest private power company, with a reported revenue of ₹61,542 crore for FY24. Today, Tata Power leads the industry in clean and sustainable solutions with 30% of clean energy generation locked in its portfolio. The company is now transitioning into the EV sector by establishing the first set of Electric Vehicle charging stations in Mumbai. Know the latest updates on Tata Power Ltd., like Share Price Today, Market Cap, Price Chart, and Balance Sheet. Taj Mahal Palace Hotel (1903): The stories behind Tata’s entrance into the hotel chain business are many but the one anecdote that stands out is the Watson Hotel visit. It is said that Jamshetji Tata was denied entry to Watson’s Hotel, which was exclusive to Europeans. That’s right! Even major personalities like Tatas faced racial discrimination. So, to create a luxurious place for people from all races and classes, the Taj Mahal…