Why Financial Planning?

Planning is bringing the future into the present so that you can do something about it NOW.

When we started wiseNRI journey we did a survey to understand the aspirations of our NRI readers, one term kept resonating loudly – Financial Freedom. It became evident that this concept stood at the forefront of their desires, leading us to pivot our focus. Even our punchline was inspired from that – “Financial Freedom – Simplified”


Must Read- Five Financial Tips for NRI

The Truth About Financial Freedom for NRIs

For years, the idea of achieving Financial Freedom has been romanticized, often depicted as an idyllic state where one can retire early, sip on piña coladas, and watch cricket matches all day. Yet, after over two decades in the financial field, I’ve come to realize that the reality is far more nuanced. Allow me to debunk some common misconceptions:

Misunderstanding Financial Freedom for NRIs:

Many equate Financial Freedom solely with early retirement, envisioning a life of leisure and passive income. However, this overlooks the importance of purpose and engagement in one’s daily life. After all, using something sparingly often leads to its depreciation – be it your body, mind, or even your finances.

Starting from a Negative Space:

Often, the pursuit of Financial Freedom stems from job-related stress, leading individuals to view it as an escape route. However, relying on increased job stress to attain a mythical goal only perpetuates the cycle of dissatisfaction, further diminishing one’s quality of life.

Partial Focus on the Equation:

Financial Freedom hinges on two components – the size of your financial nest egg and your monthly/annual expenses. While building wealth may seem daunting, it’s crucial to remember that controlling expenses is within your grasp. Yet, many fixate solely on accumulating wealth, overlooking the impact of their lifestyle choices on their financial goals.


Must Check – Financial Planning For NRI

Financial Freedom as a Feeling:

Even those who surpass their numerical Financial Freedom targets often find themselves plagued by uncertainty and fear. Despite having ample resources, many struggle to embrace a slower pace of life, tie up to the familiar routine of chasing financial milestones.

The Complexity of Financial Freedom

While the allure of Financial Freedom is undeniable, its attainment is far from straightforward. It requires a delicate balance between prudent financial planning and embracing life’s uncertainties. As NRIs navigate this intricate journey, it’s essential to recognize the myths and realities surrounding this concept.

Sacrifices and Trade-offs:

Many NRIs sacrifice personal relationships and experiences in India to pursue Financial Freedom abroad. Yet, this pursuit often comes at a cost – a loss of connection with loved ones and a sense of belonging. As we chase financial milestones, it’s crucial to evaluate the trade-offs and prioritize what truly matters in life.

The Role of Financial Literacy:

Empowering NRIs with financial literacy is paramount in their journey towards Financial Freedom. From understanding investment strategies to managing debt and expenses, acquiring financial acumen equips NRIs with the tools to make informed decisions and navigate market volatility effectively.

Shifting Perspectives on Work and Retirement:

The traditional notion of retirement is evolving, with many NRIs opting for phased retirements or pursuing second careers post-Financial Freedom. Rather than viewing work as a means to an end, they embrace purpose-driven endeavors that align with their passions and values.


Must Read – Financial Success and Struggles of NRIs

Exploring Paths to Financial Freedom for NRIs:

As NRIs embark on their quest for Financial Freedom, it’s essential to adopt a holistic approach that encompasses both financial and emotional well-being. Here are some strategies to consider:

  1. Diversify Income Streams: Instead of relying solely on passive income, explore opportunities to diversify income streams through investments, freelancing, or entrepreneurship.
  2. Focus on Long-Term Sustainability: Avoid chasing short-term gains and focus on building a sustainable financial plan that accounts for market fluctuations and unexpected expenses.
  3. Prioritize Personal Fulfillment: While financial security is essential, prioritize personal fulfillment and well-being. Invest in experiences, relationships, and activities that bring joy and meaning to your life.
  4. Seek Professional Guidance: Consult with financial advisors and experts to develop a customized financial plan tailored to your goals, risk tolerance, and time horizon.

Check – How much retirement corpus is enough for NRIs

Many of our Clients already achieved Financial Freedom – sharing 2 stories.

Story: Mr. GJ’s Journey to Financial Freedom:

Mr. GJ, a retired HR CXO (Middle East) residing in Delhi, is a perfect example of the pursuit of Financial Freedom with purpose. Despite enjoying a life of leisure and travel post-retirement, Mr. GJ remains actively engaged as a consultant for Small & Medium Enterprises. His dual roles allow him to indulge his love for travel while contributing his expertise to budding entrepreneurs, embodying the essence of a purpose-driven retirement.

Example: Mr. JJ – Redefining Retirement in Singapore:

Mr. JJ, a 40-year-old NRI based in Singapore, achieved Financial Freedom through prudent investing and disciplined savings. Rather than retiring early, Mr. JJ continues to work while also sharing his knowledge as a university lecturer. His commitment to lifelong learning and contribution to education exemplify a new paradigm of retirement – one fueled by passion and purpose.

As NRIs navigate the complexities of Financial Freedom, let us remember that true liberation lies not in early retirement, but in the pursuit of passions that enrich our lives and contribute to the well-being of others.

We invite you to share your thoughts and experiences in the comments below.

Published on June 24, 2024

Hemant Beniwal

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

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