How to financial freedom – with proper investing

How to financial freedom | Topmanagedportfolio.com

How to financial freedom – with proper investing

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.

  1. Security – Financial independent people feel confident to confront what happens in life.
  2. Comfort – Not only for yourself, but also for generations to come.
  3. Time – One of the most important thing’s money can buy is more free time
  4. 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.

Retirement Savings

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.

Managed Investments

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!


4 Comments

RN Didi

November 5, 2017 at 9:34 pm

To me, financial freedom means not to have to worry about tomorrow: if I want to go to a nice 5 star hotel on vacation: I can do it without any worries; if my mom calls me because she needs help to pay a bill, I can hand her the money the next day; if I want to stop working, I can do it on the very same day. I thrive to get to this point in life.

My husband and I are looking for investment opportunities: we’re actively looking for a plex to get our real estate investing going. We also would like to have some managed investment. I seriously need to do my homework on that. You mentioned forex market, what exactly is this?

    Edmumd

    November 6, 2017 at 12:23 am

    Hi RN Didi, you are right on the understanding of financial freedom. It gives you a feeling of liberating as you can experience life to the fullest.

    Real estate investing is one way to grow your wealth but it should be part but not all of your whole parcel of wealth strategy as it takes time to buy or sell the property.

    Many wealthy or High Networth people also invest some money in Managed Investments i.e. a investment being managed by professionals. Forex market investing is where people participating in the foreign currency exchange market and make money on the up or downs on the exchange of two currency, example USD vs British Pound, or USD vs Euro, just to name a few.

    Many regulated forex broker works with investment firm who runs the forex trade with algorithms,i.e using a computer program, assist by experienced trader to analyze the market trends and execute buy or sell order for investor. Buy doing so, it takes the emotion of human behavior away and enhance speed of execution.

    As forex market operate 24 hours x 5 days, many trade opportunities can be exercised and it is rather realistic investor will make about 15-30% a year on their investment. 

    Hope this information helps your pursuit towards your finanical dreams. 

    We works with only reguated investment firm, to make sure they comply with good market practices and pay out the client money upon withdrawal. If you need further information, just leave your contact details and we would be glad to guide you.

jessie palaypay

November 18, 2017 at 7:02 am

What are your thoughts on investing in physical assets such as precious metals (i.e. gold or silver)? Would you advise on having this be a part of your entire investment portfolio besides having a good value home and a well managed brokerage account?

Also, do you think bitcoin or cryptocurrencies of the 21st century are also a good investment?

    Edmumd

    November 18, 2017 at 7:23 am

    Hi Jessie Palapay, 

    You can keep some portion of physical assets in the form of gold bullions or ingots as part of your retirement savings. The only question is how much will these assets will appreciate in value in the current fiat currncy economy and where or which country you wamt to keep your physical assets with. 

    Reason – government can pass law barring their citizens holding gold as this has happened in US before.

    Spread your investment across different asser class and diversity in different countries or accross continents will give you a much better peace of mind. 

    You mentioned managed brokerage account which is mostly invest in ETF, Mutual funds, you can consider rhe managed forex or options account too if you like to have faster growth of your assets.

    I view blockchain technology and cryptocurrency as a disruption to the financial system which is bound to come. Personally I hold few types of cryptocurrencies like bitcoin, ethereum and litecoin currently.

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