Wednesday, 17 August 2016

Financial freedom - how do I start?

Trying to reconsider my portfolio, I was just asking some of my friends about some ideas. Sadly enough, many of them proposed simplistic solution, and I would often tell them, is this what you would do if you were in my place? My understanding that we need a real financial education seems more needed than ever. But the thing is, that so many think they already know everything they need to know, and despite this, they do not act upon it. They just react to the environment. And this little difference is what we make us to reach financial independence, to retire early, and to enjoy many years of happy, fulfilled life. Being active instead of reactive is all we need. When someone see my results and ask for help, I advice my trademark beginner strategy. Save enough cash to cover 6 months of basic expenses and buy a piggy bank and save something daily in it. At the end of the month, just take whatever you saved and put it in a savings account. Why I do this? Easy, saving a six months basic expenses will make you to feel committed and ready to tackle the issue of your financial freedom, while building the habit of regular saving is also helped by the daily piggy bank deposit, even if it is only 0.01 per day. The habit is the goal, not the saving per se. Later, when this is already part of your normal life, we can start to make a plan. Most of the times, saving 30-50% of your income is not only recommended, but also possible, and the final goal is within your reach. Five to ten years later, you are financially independent. End of the project. And then the real adventure begin.

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