Financial freedom – You hear this term a lot on just about
every marketing and investment tip out there. But what exactly is it? The truth
is, there’s a lot of ways to save, but you can easily watch as your financial
value increases over your lifetime. The importance of being wealthy is that you
need to learn how to save it. That can actually be harder because the
motivation is there, it’s just that it’s in the backs of our minds. In this
guide, we’ll show you how to invest your money for financial freedom in your
future.
Become
an Investor
No, don’t play the stock exchange. People commonly have
misconceptions about what someone says you should invest in. Avoid paying and
investing in things that can “sell themselves”, as there are often Ponzi
schemes involved and always be sure to listen to your financial planner because
companies like Compass Wealth Partners know
what they are talking about. Bitcoin and other cryptocurrency are a valid form
of this, because just like a stock market, it can crash, and when it does,
you’re out of all of the peak money that you had. What they mean is to invest
in buying stocks and bonds that are legit and have solid shares that have
little risk of crashing, like mutual funds or exchange trade funds. More
importantly, set yourself up for your future and you can end up throwing a few
dollars into an IRA or 401k per week or month and end out on top in the end.
How to Invest
Properly
You should start investing as soon as possible. A prime
example of this is to raise your payments into your 401k to the same percentage
as you started out with. If you go from 12 dollars per hour, then go up to 14,
you need to put two more dollars to match what your company pays you. By the
time you want to retire, you’ll have over a million bucks in your investments
assuming that your 401k plan has a certain percent return.
Another thing to think about is how to invest in the
beginning. You have to take the first risk, but if you do your homework and
research things such as compounding interest rates, employer return (the rate
at which your company pays in compared to what you pay into something like a
401k), and proper saving and budgeting, you can set up your camp in little to
no time. There were actually a bunch of younger kids who have become
multimillionaires when the Cryptocurrency market boomed in 2018. This reason is
because they invested early and took a risk, then they pulled out when they had
literally millions to spend and cashed out before the crash that hit later that
year.
The same goes for IRA’s, mutual trust funds, and other
areas of investing too though.
Conclusion
There is never a better time to invest, no matter how old
you are. If you haven’t started or are actively investing, then you’re missing
out on things for yourself, and even possibly your family. Therefore, it’s very
important to stick with your budget and automatic plan for investing. If you
want to play the stock market, you can a little bit, or you can even play the
real estate game and put your investments into becoming a landlord, or just
increasing your own property value to sell for a later time.
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