Monday, March 5, 2012
The most important, and often most difficult, step of the path to financial freedom, is getting started. Fear of the unknown is often enough to persuade people to stay put, avoid change, and keep going down the same path.
So, how do we get started on our own paths to financial freedom?
The goal can be broken down into various stages, or tasks.
1. Earning Money - a job
In order to save money, and grow money, you must have money first, right? Do your best to remain employed. Even if the goal of financial freedom means not needing to work, the path to that goal requires you to remain employed or earning money as regularly as possible.
2. Keeping Money - spend less than you earn
A wise man in "The Richest Man in Babylon" once said, "part of all thy earn, is yours to keep". No matter how much, or how little, you make, saving a part of it, is a must. It can be 10%, or 20%, or more, if your situation allows. But after all expenses are considered, you must save something.
3. Growing Money - investing
"'Every gold piece you save is a slave to work for you. Every copper it earns is its child that also can earn for you". This is the fundamental principles of investing. The phrase emphasizes four key points of investing: letting your money work for you, compounding, income, and time.
The blog will primarily focus on the 3rd aspect of financial freedom and how to get your money working for you. To do this, the topics will be split up into two series for the time being, each of which will discuss relevant topics.
- Investing Series
- Portfolio Series
Posted by Alex at 4:59 PM