India@75 | Notes from the campus: Here’s what students from top institutes tell us what financial freedom means to them

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A significant part of India’s population still remains fairly young as the country celebrates its 75th Independence Day. India has the largest youth population in the world — around 66 percent of the total population (more than 808 million) is below the age of 35, according to the International Labour Organization (ILO).

For today’s youth, the term 'freedom' encapsulates several aspects, with financial freedom being among the most critical. On the eve of Independence Day, Moneycontrol spoke to a cross-section of students from elite institutes. Here’s what they had to say about what financial freedom means for them:

Dheeraj Ahuja, IIM

''According to me, financial freedom can be defined when you have the freedom to pursue your passion, not worry about money and spend time with friends and family.

The most important than all of the above is financial education. Money is one form of power but what is more powerful is financial education. Money comes and goes. But if you have the education about how money works, you gain power over it and can begin building wealth. The reason positive thinking alone does not work is that most people went to school and never learned how money works, so they spend their lives working for money.''

Sudharm Agrawal, IIM

''Being free from yearly or monthly obligations to satisfy my financial needs for the rest of my life is what financial freedom means to me.  I want to achieve financial freedom by 2038. I believe there are numerous ways to achieve financial independence, but I want to focus on two: creating a regular investing routine and starting my own business in five to seven years. As a habit, I presently invest in the stock market to put the skills I've learned in classes like Business valuation, security analysis, etc. to use. ''

Akshit Khunger, IIM

''The ultimate goal for every individual is to pursue a comfortable life without worrying about micro-management of finances. I aspire to achieve this financial freedom by the age of 45 and I believe that this can be achieved by taking the following constant baby steps such as saving early, investing, calculated and smart decisions.  With the current India Inflation rate at 7.01% (June’22), any investment which generates a CAGR over the inflation rate and has a minimum risk factor is a good investment.''

Jigar Pitroda, IIM

''Financial freedom is the status of having enough income or wealth sufficient to pay one's living expenses for the rest of one's life without having to be employed or dependent on others. An ideal age to achieve financial freedom in today’s time would be 45+. To achieve it, Budgeting and Planning in each area is necessary.

A 9-to-5 job may restrict you to achieve financial freedom. Some ways to create alternative sources of income are dividend from investment in stocks, renting properties, run a business, sell profitable content.''

Hritam Mukherjee, IIMC

''I set up a financial goal during my graduation and post-graduation years, and worked relentlessly for it to materialize. It was a short-term goal, and when I professionally join my workplace next month, I have a new set of goals to replace it with. My goal was achieved a month early, and that made me very elated and content with my consistency to be at it.

Knowing me, my expense patterns and saving habits, I can predict myself to be completely self-sufficient by 2025. I am waist-deep in financial suggestions like investing in SIPs, Mutual Funds, the stock market etc., and I am open to considering all of that. I do not want to rush through this procedure, rather I want to understand every pro and con of a proposition first to properly know what I am getting myself into.''

Amrendra Kumar Singh, TISS, Mumbai

''I aim to be financially independent by 2038. It does not imply that I would seek early retirement. I hope to keep working and take up more challenging roles since being financially independent is bound to give one more confidence and risk appetite.

I aim to invest my savings primarily in real estate and use the rental income as a source of my financial independence. Secondarily I would also be investing in long-term savings plans such as PPF and Sovereign Gold Bonds apart from stocks.

Financial freedom for me is not just about investing the savings but also about minimizing expenses through minimalistic living. Through investing my savings and leading a minimalistic lifestyle, I aim to attain financial independence in about 15 years.''

''Financial freedom or financial independence has different meaning to different people. For some it means to have buying capacity to be in a position to buy anything anytime they want, for some it means having enough reserves where they can lead a comfortable life with enough savings for retired life without being dependent or some it means to pursue any career without any worry or burden.

I would want to achieve financial freedom by age of 45 yrs, to pursue my desire to bring out a change in education system and society without worrying or being dependent on someone. Financial freedom lets you steer your life the way you want.''