Pathway To Financial Freedom-to not be dependent on anyone for our financial needs and to be debt free. Just think what it would be like. Are you sick of working for a weekly wage without ever achieving more than just paying bills? Do you want to be wealthy and the master of your own destiny? To become financially free, we have to get serious about it because it won’t happen by itself. Determination is your key to wealth and independence.
Investing wisely means seeking long-term wealth in capital and income with the emphasis on safety. Assess your current financial situation then, develop your financial plan based on realistic goals. Planning will help you stay focused. How much can you afford? What should you be looking for?
It can make you rich, or poor if you do not invest wisely as various investments have varying degrees of risk. People may become confused by the many different kinds of investment options in the market to choose from.For example-bonds and stocks, mutual funds, real estate, commodities (gold, silver, oil), and collectibles (paintings).
What is right for one person may be wrong for the other. Many advisers are no more than commission sales people who will try to sell you products, irrespective of whether they are suitable or not. Don’t invest blindly or jump in with a “get-rich-quick mentality hoping to find instant wealth. Investing wisely means doing your homework, and always get advice from registered and experienced finance experts and firms that best meet your personal financial needs. And, don’t commit yourself to any investment program you can’t completely understand.
Self Education
Once you decide that you want to invest, the next step is learning how.Self education will help you avoid mistakes and to learn new ideas in order to invest wisely. Go to seminars and, learn from other investors. Financial magazines feature many articles on the share market, property investments and taxation matters. And, there are countless books written to help people understand the financial market. Having the knowledge to act in your own best interests and to have the confidence to make decisions based on what is right for you is the only sure route to financial freedom. It is about seeking the right investment advice in order to invest wisely in quality products.
Pay Yourself First
Savings is an essential element of personal money management and, a pathway to financial freedom.To become a successful investor, you need to make investing a part of your daily life. If you want money to invest, then, you will need to save.
“Paying yourself first” is a key element in getting started on the road to financial independence. Try to pay yourself between 5%-10% of your after tax income to start your savings plan. The more you save the more wealth you create, the more savings you turn into capital, the less you need to borrow. Your goal is to ensure steady growth by setting aside a specific amount each month for the purpose of saving.
The Miracle Of Compounding
One of the major keys to long-term investing and, to creating real wealth is to use the miracle of compounding. Compound interest simply means that interest is earned on interest. It is as simple as saving some money on a regular basis, investing it, letting it make you a return on your investment and then having the interest earn you still more interest. It is a way to make your money multiply dramatically over time. Make Compound Interest work for you.
Investing In Property
Property has been a popular pathway to financial freedom for many. Buying your first home gives you personal security, tax advantages and will build equity (value) that you can borrow against later.
You invest in property to build your assets through capital growth and to provide income through rent. To have an asset like property, the value of which increases over time the power of capital growth comes into effect. You can use the capital growth on one property to buy a second property then, use the capital growth on those two properties to buy another.