It seems strange to have to deal with a subject of this type on a blog dedicated to the strategies that teach to tend to financial wellness and in general to a better quality of life, the man wants to be happy and satisfied, it is his ultimate goal , this is actually my main goal and even if the emphasis in the blog is on financial means that can help us reach this “grace” state, my mission is without a doubt “to be healty” that means a state of complete well-being that involves our entire existence, the rest is boundary, means and nothing else.Continue reading
What an enormous effort it is necessary to make to be able to coexist with its principles and correct management of money in a society where the majority have a wrong approach in the matter and also the concepts of wealth and poverty are misrepresented and exploited by the system.
Let me explain better with examples, I often have to “fight” with my wife and in general let family or friends understand why I am saving myself and spend time studying how to invest.
I explain that today’s society pushes towards extreme consumerism, it does so because otherwise the system, as planned, would implode on itself, the system is based on consumption that must constantly increase, so salaries are increasingly inadequate, more hours of work in order to satisfy the need for compulsive buying, which is always inadequate because we always want more.Continue reading
The theme of being able to live without necessarily having to work or at least working less to fully enjoy life is a topic that is now much debated on social networks and on the web.
In fact, globalization has imposed a modality based on consumerism and has created needs that did not exist before, intoxicating the authentic style of human existence.
Many people begin to categorically reject this alienating model whereby it is necessary to consume more and therefore to increase their earnings by working very hard to be able to spend and satisfy their desires (system induced and not physiological) that regularly vanish whenever they come into possession of the desired good , to start again wanting something else even more expensive and regularly empty your wallet.
It therefore goes from the most extreme choice to live homelessly to the somewhat less drastic choice of living with just 500 euros a month cutting all unnecessary expenses (an interesting choice, even if it could also be extreme and not acceptable, in as it puts you in the shelter, in my view, from a possible financial “armageddon” that would strike anyone not able to sustain themselves with very little, or to produce self-necessities).
Then there are other philosophies that yearn for “financial freedom”, that state in which a person has created income from hard-earned labor and saving over the years, and with profits derived from the latter he can at first permit himself to cover his fixed expenses monthly (financial security) up to being able to travel or otherwise satisfy personal desires fully enjoying their time, not necessarily having to work anymore, a certainly captivating life perspective ….
To reach the so-called “financial freedom” there is no formula for everyone, everyone will have to build a tailored suit, the needs are subjective.
It is therefore an extremely personal journey and there is no guru that can indicate a way to go.
Certainly listening to the experiences of others, reading, researching oneself, advising oneself as mentors is certainly useful for developing one’s own path that must be realized in objectives.
But the road that you will undertake is absolutely personal.
There is no one who can tell you how to achieve your financial freedom as each person is made in his own way, he has peculiarities, a character, talents that make him unique, and it is therefore an internal research that we must do about ourselves.
The types of income, for example, that we will make our own in order to reach the goal must not and cannot necessarily be those that are used, perhaps successfully, by another person.
For example it is not said that financial markets are the right formula for everyone to create passive rents, same as for real estate, patents or other etc …
During this journey we will encounter various difficulties, we will make mistakes, we will be disappointed, we will stumble, we will get up again, we will correct the course, in other words we should not expect a straight path !, let it be clear right away !.
When we have a concrete experience, we will face a reality that is sometimes very different from what we expected, it is part of the growth path.
At the beginning of the path planning is done with the help of Excel and possible scenarios:
the steps are:
- to clarify the ideas from the start which translated means to know where we start from,
- where you want to go
- how to arrive and within how long
Let’s take an example: knowing where you start means having a precise idea of what the average monthly expenses are, how much your savings amount to (money saved to date if there are any), and what is the monthly saving capacity .
If the monthly expenses balance the revenues and you can’t save anything you need to cut off any debts you contract, reduce expenses, in order to be able to constantly save money, how much is subjective and depends on your personal plan, but certainly the ability to save It is an essential prerequisite for pursuing financial freedom because without money to invest, assets are not created and you are not going anywhere.
Saving is all in all the simplest thing to do and the first skill, even if not everyone can do it for various reasons, but with good will, trying to increase revenue and reducing expenses (and unnecessary expenses we make many) it is possible to generate a regular provision of unexpected money !.
At this point, however, we must also learn to invest, the most difficult part!
Finding an investment that has a low risk exposure, that produces a decent profit with constancy over time is not at all easy to find.
On paper, making these arguments is relatively simple, but are we sure that reality offers such a linear scenario?
Let’s start by considering that we should always have all the money saved and these should always produce the profit expected regularly with immediate effect.
In reality, the picture is not exactly like that, investments are experienced, mistakes are made, so the expected return is not that achieved, in short, it is not as simple as some gurus want us to believe.
In the image depicted below, two paths are graphically represented, the one on the left represents the real journey of a person towards financial freedom, the one on the right represents the path that a person who has not yet experienced financial freedom is likely to imagine. It is clear that the concrete path towards financial independence and punctuated by accidents, corrections, we go forward we go back, it is not at all linear !.
On the other hand, if Warren Buffett, who is the biggest investor in history, has made his investments pay 15% on average throughout his life, which is the performance that the best hedge funds get, made up of teams of professional experts on the field, when they do not lose, it is plausible to think that the vaunted profits of 30% or more on a given asset are actually hoaxes circulated on the web or mirrors for the larks to fool unpopular unfortunates, or at least is absolutely hidden or underestimated the inherent risk.
Therefore, be wary of investments with big profits and favor long-lasting ones, even if they are less appealing.
After all, financial and financial freedom requires stable and continuous income, it is not necessary to make a bang, those who aim to make a lot of money right away, even if they are doing well, earn money for a couple of years, but sooner or later, statistically, the moment comes when they lose everything. who earned it !.
So what return do I have to expect from a REAL investment with an acceptable risk, in which I will hardly lose my money?
From the idea that I got a net 7-8% check is already a great goal here in Italy! (these data have been processed in Italy, in another country with a different economy the profits to which the can aspire could have different percentages).
It must be said that I do not share the idea according to some that to live on income you need a capital of at least one million euros, I believe that 400,000 euros are enough, but the secret lies in learning to invest, a skill that is not taught to us and that each of us should absolutely have, especially nowadays !, immediately after work skills, which are the number one asset, which allows us to generate a constant supply of money, and that knows no crisis.
Good life to everyone!
Readers who can benefit from reading this article are potential foreign (non-American) investors who are interested in the US real estate market, that is, those who are unfamiliar with the American culture and are therefore in difficulty in facing a non indifferent, that is, investing overseas.
Below I will describe my personal experience and how I organized myself from Italy to invest in the USA.Continue reading
The Cannabis market it says will be the next after that of Megatrend criptovalute.
The sector has excellent conditions for growing in the next few years in America and the world that will follow America example.
There are already eight states in America that have legalized marijuana for recreational purposes ,California last this year in January and Canada in July, it is plausible to believe that the other states will follow the example of the latter.Continue reading
Constancy, constancy, constancy, and still constancy, day by day, week by week, month after month year after year, this is the secret to improving one’s skills / abilities in one area.
Studies on cognitive processes have shown that the continuous and constant application in a field leads to imperceptibly improve from day to day.
It may happen that you do not perceive improvement, despite the countless efforts you have the feeling of not progressing, not improving over time.
This can generate frustration, demotivation, it is therefore necessary to understand how the learning mechanisms of our brain work.Continue reading
Financial freedom is a condition in which we should no longer have the need to work except to set up our investments and keep ourselves informed, because the world evolves as well as the types of assets that may no longer be as effective as a few years ago .
Basically, however, it should be an activity that is certainly not full-time, which leaves considerable space available, which is why those seeking to achieve financial independence should favor cashflow to capital-gains.Continue reading