BQPortfolio: Minimalist Professor Wants To Know When He Can Achieve ‘Financial Freedom’

BQPortfolio speaks to citizens from across India about their financial goals and helps them access expert advice on how to achieve them.

Professor Bhaskar Bhatt is a self-proclaimed minimalist. This allows him to save a large part of what he earns. Besides providing for his young daughter, Bhatt wants to know for how long he will have to invest to achieve financial freedom.

Here’s an illustration to explain the concept of financial freedom.

Assume your monthly expenses are Rs 50,000. If you manage to accumulate Rs 50 lakh and invest it so that you get a return of 12 percent every year, you will earn a total of Rs 6 lakh. If you split it over 12 months, you will earn Rs 50,000 per month. What that means is that your investments are paying for your monthly expenses. That leaves you free to spend your earnings in whichever way you want or invest it to bolster your wealth.

Bhatt, 42, has an investible surplus of Rs 1 lakh a month. But, he’d like to know for how long he’ll have to invest to hit that magic number—the amount that will give him a monthly return to take care of his investments.

On this week’s episode of BQPortfolio, Kartik Jhaveri, director at Transcend Consulting, tells Bhatt about his savings time frame and what he must invest to achieve financial freedom.