Good evening everyone and welcome back. Today I decided to write about how I am going to achieve my goal of financial freedom.
So first let me explain what is financial freedom real quick. This is to be able to live your life the way you want it without the need to go to work every day. For me the ‘’normal’’ life causes too many limitations.
By ‘’normal’’ I mean the life that most of the people in the world have. They go to high school then they go to college and then they work their whole life in the field that they have chosen to be. For some people that might seem ok, but I just cannot accept the fact that I will work week after week after week until I turn 70 and then live the remaining couple of years waiting to die. This system does not seem fair to me and I will not live my life according to it. I dont want to work for someone else and be dependent on someone else to give me my paycheck so I can have a roof over my head.
So what are the options then ?
Luckily there are quite a few different ways that you can escape that cycle of working during the best years of your life.
1.Real estate investing
The idea is that you buy a couple of properties , rent them out and generate enough income so you dont have to be dependent on a paycheck from your employer anymore. Its a plan that works for a lot of people, but investing in real estate is not really that passive and you will have alot of different issues to deal with almost every day. First of all the properties require maintence and you will have to provide this to your tenants. Second you will have to pay a decent amount of your money in taxes and amortisation costs- all those repairs that you need to do every now and again. You will probably need to pay interest on the mortgages on your properties unless you have hundreds of thousands or even millions of cash sitting around. All in all not a bad option, but for me it can easily go to a full time job, escepcially after you have a couple of properties.
2.Stock market investing
My favourite option and how im planing to achieve financial freedom. There is hardly anything more of a passive income than owning stocks. After you do your initial research and buy into the stocks that you want there is hardly anything you need to do. You just receive your growing dividends quarter after quarter and have all the time to do whatever you want to do in life. The idea is to build a portfolio of stocks which pay increasing dividends and that way you are beating inflation from the growth and receive your dividends quarter after quarter. The beauty of it is that you basically have no expenses – all you need is a laptop and interntet connection. This strategy will usually take a couple of years depending on your savings rate and the rate of returns of your portfolio, but once you achieve the desired income you can say goodbye to your employer and live the life the way you want it.
3.Having a bussines which do not require much of your attention.
This part is a bit tricky and not that easy to achieve because any bussines requires attention. Still if you put enough thought into it you can minimise the time you need to work on it and live an almost-free life. There are a lot of online bussineses these days that can be automated to the point that you only need to do a couple of clicks with your mouse every day to keep it running. Still these kinds of bussineses require a lot of time invested in them in the beggining so that they can be almost automated in the future. Examples of such are book publishing, Amazon FBA , dropshipping and others.
There are of course other options and every person have a different approach, but these are some of the most popular routes you can take to financial freedom. All of them takes time, discipline and a lot of hard work, but in my opinion it is all worth it when you have the freedom to live the life you really want.
This is all from me , have a great day and happy Holidays !