“You will never do anything in this world without courage. It is the greatest quality of the mind next to honor.” -James Allen
It's easy to lose sight of why we're all working so hard every day, especially in Charlotte, as we try to keep our heads above water in these culturally chaotic times. What is the objective? What are we hoping to achieve by raising funds? Financial independence is the answer for many.
Financial independence- or financial freedom- has become a bit of a buzzword over the past few years, particularly asa the pandemic has made us reconsider many of our business and work practices.
But what does financial independence really mean?
I define this phrase as "having a sufficient income from sources other than paid employment to meet your basic requirements and comforts." Financial freedom is synonymous with financial independence. It's the state of having enough money to be able to do whatever you want. It makes no difference whether you want to work or not; you have enough money saved and invested to pursue your aspirations.
Is financial independence, however, really a pipe dream? Is it something that only the fortunate and well-connected have? No, it's a goal that anyone can achieve if they have some fundamental information and make some wise decisions.
1. Begin investing as soon as you can. Investing is a great way of generating income without costing you time. And, it costs substantially less money to achieve your goals than you might think.
2. Make a conscious effort to save on a regular basis. It's a simple approach to build wealth, especially when it's part of a monthly plan that's automated. You can ask a financial advisor which accounts will save you the most money.
3. Begin investing with the highest amount you have available to you. Over a longer period of time, you will have more money working for you. Invest amounts that won't put your finances at risk, but that will generate substantial sums.
4. Aim for the maximum rate of return you believe you can get on your money in the long run. Every tenth of a percent matters. The greater the rate, the less money it will take to achieve your goals.
These four principles are the foundation of financial freedom.
It sounds simple, but you can't save money that you've already spent. I recommend that you develop goals and prioritize your desires, so that you're spending only on things that are really important to the lifestyle you want. Given that money may only be spent once, you must prioritize your desires. To do so, you might want to assign a monetary value to each of your desires.
So, here's a little exercise to help you on your way to financial freedom:
Take a piece of paper and make a list of your desires. These can include everything from a new home to a hot tub, to a trip to London, to a new kitchen blender. Write a brief description of why you want each item next to it. (A hot tub, for example, can be desirable because it allows you to relax with family and friends.) Even at this stage, you might identify some 'desires' that are passing whims, trends or phases.
After you've completed this step, take another piece of paper and re-order the list according to the importance of each desire. If a trip to London is at the top of your list, do you really want to keep paying that $40 gym membership every month? Can you switch to home workouts instead? Perhaps you're saving for a house; do you need to pay for every single streaming service going? Or can you put that money into a savings account, and have it generate income instead of costing you precious dollars?
Through saving and investing wisely, financial independence, financial freedom can be reached by anyone. For more information on the best ways to invest and save, arrange a chat with me!
Contact:
Sara F Gonzalez
(704) 599-3355
Kohari & Gonzalez PLLC
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