In our world today, many people lacks the wisdom about investment and this had made living a financial stress free life difficult. Let me take us through how investment is one of the best keys to financial freedom.
WHAT IS AN INVESTMENT?
Investment is defined as the commitment of current financial resources in order to achieve higher gains in the future. Investment is building a life that will allow you to retire or pursue any career you want without being driven by the need to earn a certain amount each year. Investment is an asset acquired or invested that is saved in to build wealth and save money from the hard earned income or appreciation.
WHAT IS FINANCIAL FREEDOM?
Financial freedom is having enough savings, investments ,and cash on hand to afford the lifestyle you want for yourself and your family. Financial freedom should be the first priority and an important goal for human. Unfortunately , many people fall short of financial freedom. Even without financial emergencies,escalating debt due to overspending is a constant burden that keeps them from reaching their goals. Debt is like a major crisis such as hurricane or an earthquake which completely disrupts all plans and add additional holes to a safety nets.
Financial bad times happens to nearly everyone, but there are keys to financial freedom such as:-
Set life goals :- focus on what you want to achieve and create a blue print for achieving those goals.
Make a budget to cover all your financial needs and stick to it.
Pay off credit cards in full, carry as little debt as possible and keep close eyes on your credit score.
Create automatic savings by setting up an emergency fund.
Start investing now :- bad stock markets can make people question the wisdom of investing, although history has it that no better way to grow your money but the magic of COMPOUND INTEREST alone will grow your money exponentially, but you do need alot of time to achieve meaningful growth.
Stay educated on financial issues :- knowledge is the best defense against fraudsters who prey on unsophisticated investors to turn a quick buck.
Take care of your belongings because maintenance is cheaper than replacement.
Live below your means :- mastering a frugal lifestyle means developing a mindset focused on living a good life with less and it's easier than you think. To attain financial freedom, develop the habit of living below your means.
I remembered when i had no knowledge about investment, all I do is spend money as it comes, no plans and no set goals. This continues till my early twenties until i attended a financial seminar where i was impacted with the knowledge of how important investment is and since then my ways of thinking has changed. I now operate more on investment and i can say it has helped me alot and to some certain level i have achieved financial freedom.
WHY DOES INVESTMENT MATTERS TO FINANCIAL FREEDOM?
Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk return tradeoff.
Investment creates potential for a long term returns.
Investment outperform inflation.
Investment provide a regular income.
Investment tailor to your changing needs.
Investment helps to fit your financial circumstances.
Those who achieve financial freedom or independence tend to fund their living expenses through income from their investments rather than relying on a salary.
Thanks for your time on my blog.