Quote of the day

When the financial crisis was at his height, in 2009, someone asked Warren Buffet how to survive during a crash. His answer was:

"Financial staying power requires a company to maintain three strengths under all circumstances:
1) a large and reliable stream of earnings;
2) massive liquid assets and
3) no significant near-term cash requirements."

If you will make analogies with a company, then you need to think at:

1) A reliable stream of earnings: Staying in one job for the long haul is a great way to earn the confidence of your employer. But even then, nothing is certain. Make sure you have disability and life insurance to provide a reliable stream of earnings if something should happen to you. Multiple income sources is the word.
2) Massive liquid assets: Here's a point that many fail to heed. At a bare minimum, you should have enough money set aside to provide for you and your family for six months if you lose all sources of income. Keeping a little cash on hand to take advantage of stock market dips can pay off as well; then, while other investors panic-sell, you can buy shares of your favorite companies at a discount.
3) No significant near-term cash requirements: This can be a little tricky if you're just about to buy a house or send a child off to school. But in the end, what Buffet is really talking about here is being smart with your money  i.e. not making bets that you can't afford to lose.

Where to start ?

My journey started after i read John Brooks - Business adventures, a history of the market and shares from 1880 until 1960. I read there about Benjamin Graham and next book on my list was The Intelligent Investor. This is how i found that Benjamin Graham was Warren Buffet mentor and that his teachings are still very actual. I realized that i can do this. I was very excited, and after i just learned the basics of the trade i did my first trading account. I found that i was not the only one who was thinking like this and a whole internet open before my eyes. Buy shares for dividends, buy shares for long term, for short term, mutual funds, taxes and other one thousands new words make their way in my vocabulary. I did some minor mistakes at the beginning, but thanks to hours of study and some help i start my investing adventure. It was first day of January 2015 when i find about financial independence and i decided that i want that to happen to me. It was a long way to where i am now, and is amazing how much i changed in just 6 months. From 300 pounds in debt in December 2014, i had an eventful, but fulfilling journey. It is 1st of July, i have now funds in private pensions (2201 pounds) and different investments (2735 pounds), meaning that i managed to save 4936 pounds working on almost minimum wage, at least 40-50 hours each week. But the difference now is that i know my goal, and the fact that each day at work will take me closer to it. Being an optimist, i think that it will take me 5 to 7 years to get there. But if i can do it, anyone can. I want to be the living proof.
And i will stop now, because i still need to go to work tomorrow. For now.

You're welcome to join me in this ultimate challenge, and teach me how to improve my plan, or learn new tips and tricks on how to live your life as if money was not a problem.

Let's go!