Financial Freedom In 5-7 Years: How To Achieve Your Goal

It is possible to achieve financial independence. You can accomplish it in five to seven years with a well-planned financial strategy. The main thing to keep in mind is rigorous financial planning, intelligent investing and disciplined saving.

In a recent post on X, Chartered Accountant and tax expert Nitin Kaushik explained how to achieve financial freedom in just five to seven years irrespective your age.

“Most people think financial freedom takes 20–30 years. The truth? You can do it in just 5–7 years if you follow the right playbook,” Kaushik wrote, sharing a few simple ways to achieve financial freedom.

Apart from the tips shared by the CA, here are a few common effective ways to achieve financial independence:

Taking stock of your present financial state should be the first step. You need to get an idea of all of your monthly revenue streams, debts, investments and expenses. It is important to know where you stand before taking any further action. Set a reasonable goal for financial independence after you get a clear understanding of your present situation. This could be achieving a net worth milestone that enables you to live comfortably outside of your salary or having enough passive income to cover your important and regular expenses.

Next, focus on making the most of your savings. If you want to achieve short-term financial freedom, try to save at least 30% to 50% of your income. This could mean reducing your lifestyle choices, cutting back on discretionary spending, or looking for methods to increase your income through freelancing or side gigs. Remember that your money will begin to work for you sooner if you can save in the early years of your career.

One more thing you need to do is to make prudent investments. You will not achieve financial independence in five or seven years by merely putting money into a bank account. Depending on your ability to take risks, consider a number of assets, such as bonds, mutual funds and stocks. The more you diversify, the more your money will grow over time while lowering risks. For those comfortable with slightly higher risk, direct stock investments or exchange-traded funds (ETFs) can accelerate the wealth creation process.

Another important factor is debt management. Your financial goal may go off track if you have too many high-interest debts, such as credit card bills or personal loans. Prioritise paying off these debts before securing a new loan.

Develop financial self-control and monitor your progress on a regular basis. Keep an eye on your investments, take stock of your spending and make any necessary adjustments. The difference between people who become financially independent in a few years and those who require decades is usually determined by their level of motivation and consistency.

In conclusion, rigorous planning, aggressive saving, astute investing and disciplined money management can lead to financial freedom in five to seven years. A life free from financial worry can sound great, but the route may involve sacrifices and discipline.