Financial freedom is not an abstract concept but has a concrete expression for each individual. At its core, financial freedom means that all costs can be covered by unemployed income.
We are not saying now that the goal for each of you must be to be able to quit your job as quickly as possible and only live on the jobless income.
Financial freedom, as we consider it is a lifestyle: try to think of the money the same way you think about health or physical fitness.
Still not investing? Do not worry. You can start investing in whatever money you have.
The most important thing you must define is what do you want to invest for? Setting a goal for your money (buying a car, a house, going on vacation or becoming independent) is essential to answer the following questions:
– How much money can you invest? Mind you, this money should not be unencumbered for rent, tuition or an emergency.
– How long can you leave that money invested without touching it?
– How much risk are you willing to take? The risk means that you can win or lose money.
Generally – the higher the risk, the greater the profits in the long term. The shares and investment funds are some examples of this type of investment.
On the other hand, lower risk investments that are safer tend to have lower profits, although they have liquidity in the short term.
We hope you liked this selection and that you can adopt some of the advice we have shared.