How to financial freedom – with proper investing
Category : Financial wisdom
Mastery of your Financial Freedom
Many average people work hard 8-10 hours a day with the hope to save enough money, and attain financial independence at end of the working life.
However, in today’s world of low or zero savings rate, the more realistic way to achieve financial freedom is to know proper investing. Financial freedom means that your get to make life decisions without being stressed or worry about money. You become the Master of your financial matters, and NOT being controlled by them.
What is Financial Freedom for You?
Financial freedom is a personal thing. When your are financially free and independent, your always have options.
What does financial freedom for your? It could be :
- Freedom to retire 10 years early
- Freedom to upgrade to a new home
- Freedom to pay cash for a new car
- Freedom to take holiday trip every year without worrying on your budget
- Freedom to do charity for the needy with generosity
In a survey done by UBS and Spectrem, a question was asked what is “Financial Freedom” means to the millionaire clients, and the answer to that question bring out a profound apprehension of 4 key essence of financial freedom.
- Security – Financial independent people feel confident to confront what happens in life.
- Comfort – Not only for yourself, but also for generations to come.
- Time – One of the most important thing’s money can buy is more free time
- Freedom – It’s the freedom to quit your daily JOB to do something your enjoy and passionate about, even if it mean getting paid less.
In short, financial freedom means life satisfaction – the ability to live the kind of life that makes your happy !
Investing- Your How to Financial Freedom
We all have 2 major life milestones to save and accumulate money i.e. raising kids fund and old age retirement fund.
Start by working with your financial adviser to take advantage of the tax-favored retirement accounts that are available to your, typically your would save about 20% of your income, for 20 years before your retirement.
Tertiary Education Savings
The great thing about saving for your kids’ university education is that by helping them avoid student loan, your’re guiding them towards for financial freedom too !
Real Estate Investments
Your home should be part of your plan for financial freedom, and it should be settled before your retire.
It’s important to make wise decisions about the kind of home your purchase and how your choose to finance it. If your buy a home that is a good investment, it will continue to grow in value as the years go by.
Another profitable way to open a brokerage account and invest in managed investments.
Many rich people have advisers or broker and invest some money in forex or binary options investments. Do your know that most money is not in share or equity market, but in forex market ?
When it is done properly through a regulated and legitimate broker firm, your can see your money grow and compounded at the rate faster than savings in bank !
Practical tips- How to Financial Freedom
1. Spend Less Than You Earn
This is very important. Part of what your earn your need to pay yourself first. Do not live on credit and it is a common sense your’re trying to make enough money to live the rest of your life on.
Live your life as your would if your were broke and stick to your plan. Your plan has worked thus far and continue focusing on it until your have achieved your end goal.
2. Train and Educate Yourself
Learn from those who are successful. And many successful people live on set of rules and principles. Learn how to set goal and have a financial plan. Have a reading habit. One of the good books your can read is Principles by Ray Dalio.
3. Stop Saving, Start Investing
We have been trained when young to save money and open a bank account. However, I learned that saving your money does absolutely nothing more than protect your for a few months, but not forever, as your savings return is so little, the inflation will eat all your return away !
The only real way to create massive wealth is to invest as much money as your can.
If your want to be financially free in less than 10 years, your have to diversify your investments. Find different thing’s that your’re passionate about that don’t require a ton of time and invest in them.
4. Take Calculated Risks
Most people who have achieved financial freedom will tell your that they do some investments that paid off big for them. Obviously, any investments involve risk and return, as long as your can risk the amount in exchange for handsome profit, your are taking a calculated risk.
5. Be Patient with your money
Be patient with your money. Give it a chance to compound and grow, but your need to monitor that as well. When your money goal reach certain milestone, reward yourself !
Reaching Financial Freedom
Financial freedom is about more than just being able to cover unexpected emergencies, and it is a blessing your have achieved abundance in life.
On your pursuit to financial freedom, it is good to plan for charitable givings as well. Remember the saying, “the more your give, the more your receive?”
The path to financial freedom isn’t a get-rich-quick strategy. And financial freedom doesn’t mean that your are free of the responsibility of handling your money well. After achieving financial freedom, your must learn how to preserve it as well. Having complete control over your finances is the fruit of hard work, sacrifice and time. And all of that effort is worth it!