The ultimate path to financial freedom
The ultimate path to financial freedom.
It’s one of those things that many people aspire to, but few ever reach. Money is the most sought-after commodity for many, and it seems like there are more important things than making your fortune. But money is never just about chasing the rich – you can live comfortably on $40k a year if you know where to invest your money and how to avoid scams. Plus, why not have something to fall back on if everything goes wrong?
What’s the ultimate path to financial freedom? There are various ways of earning cash, but one thing that will always pay off is passive income – money you make while being at rest. You can buy yourself a small company and collect your dividends every quarter, or invest in your real estate and be paid for it. But before you can even think of making serious money, there are other things to consider. The first thing you should do is to set up a plan, then stick to it. Be realistic about the amount of effort you are willing to put into this venture – playing with your money isn’t exactly fun.
To be able to accumulate wealth quickly, you need to understand the principles of investing. This is not the time to play around haphazardly with your savings – put your money into an investment that will pay off in the end. And remember, you don’t have to earn a large amount of money right now – it’s always better to invest gradually so you can preserve your capital for when you need it most. A good rule of thumb is never to put more than 3% of one’s net worth into an investment.
There are two types of investors: those who invest only in the market and those who invest in real estate.
If you want to make your fortune in the stock market, you need to be educated on various aspects of investing. You can’t just buy one stock and hope for the best – you need to know how the market works, how stocks behave, what to invest in, etc., so that your investment will pay off one day. The other thing about investing in the stock market is that expectations are it could take decades for your investment to reach its maximum potential, so if you aren’t willing to wait this long for a return on your money, then go ahead and bust it all on some other venture.
If you’re looking to make a lot of money by investing in real estate, then put your money into a REIT. This type of investment is often extremely lucrative – if properly managed, the strategy will yield an annual return of at least 10%, which would pay off in a matter of years. But this is not the case with every property you buy – it doesn’t help if someone buys a property for $200 000 and sells it ten years later for $3 000 000. If that’s going to happen, then going by the old saying “buy cheap and sell expensive” isn’t going to work out well for you. You’ll need to be picky about the property you but – remember, this is your own money that you’re putting into the deal.
The other thing you should consider when investing in REITs is diversification. The same rule applies here as with stocks – never put all your eggs in one basket, as it’s time for a metaphor. You wouldn’t let one copy of Jillian Michaels’ “30-day shred” DVD hold the entire collection of DVDs, so why would you spend all your money on one product? If everything goes south, then those $200 000 could become $0. If you want to make your fortune, buy your product carefully and slowly.
If real estate is really not your thing, then there are plenty of other options. You can choose to invest in mutual funds or ETFs, which basically hold various securities at the same time. However, these types of investments can be very risky – they’re not exactly safe and you can lose a lot of money if the market goes south one day. Another thing about this type of investment is that it usually takes a few years before you start seeing any returns on your money – it’s like waiting for Santa Claus to bring you a present.
If you want to make your fortune, the first thing you should do is to figure out how much money you need to accumulate – then find a way of earning that amount of money. The more years you invest, the more interest will be collected on your investment – which means that investing for a decade isn’t as risky as investing for a few months.
Once you’ve decided on the amount of money you need to accumulate, it’s time for some market research. If there’s something specific you want to buy at a given time, then do some research before putting your money into it.
Conclusion- if you’re thinking about making a lot of money, then it’s time to get to work. It doesn’t take a genius to make a lot of money – you just need a foolproof plan and the patience to wait it out. Look for any opportunity available – there are no short-cuts when it comes to money.