Saturday, August 14, 2010

Financial freedom


This article discusses the concept of financial freedom and the most effective way to achieve it, based on the path that most millionaires today took to amass their fortunes.
To achieve financial freedom the first to do is take better understand the concept of it, this concept may vary for different people, but a commonly accepted concept is as follows:
“Financial freedom is a situation where passive income (income generated without you having to work actively) a person charged style that you want to view, when a person can live the lifestyle you want without having to work or depend on others for money. ”
Therefore, if we want to achieve financial freedom, our aim should be sufficient assets to generate sufficient passive income to pay for the lifestyle we want, without having to work (unless we do it by choice and not necessity ) or depend on others.
The secret of wealth
Wealth is achieved by creating or acquiring assets that we generate passive income,  income generated without us having to work actively.
Examples of assets that generate passive income are: actions that generate dividends, rental properties, businesses where we have to get involved personally to work, multilevel, copyrights, books, music or software, franchise rights, etc.
But to save enough money to allow us to create or acquire assets that we generate passive income, you may need to generate income by working, that is, income earned from active work.
So to achieve financial freedom may at first be necessary to have a job that we generate enough revenue so that we can save enough money and then invest in the creation or acquisition of assets that we generate passive income.
My first business
However, a better alternative to find a job that we generate good income, is to set up their own business, for which we could start a business that does not require further investment, for example, an Internet business, a business advisory, or a multilevel business.
Or in any case, if we do not have enough capital to set up the business we want, we may request a loan, find investors, or partner with other people.
It may seem that today starting a new business is a complicated task, it seems that all the business ideas were taken, and those that remain seem to have too much competition.
However, if we pay attention to business magazines, will always find new entrepreneurs who have recently started their business, and they are slowly starting to be very successful with them.
And if we take a closer look, we see that these new businesses are common business, but businesses are treated different, unique or novel, or in any case, are traditional business, but offer something different to consumers.
As far as starting a business is not really a difficult task, just a matter of being creative, and seek a new business, unique, innovative, offering something different, that satisfies a need, and to improve the living conditions of people.
Saving culture
Achieving financial freedom is not just about generating a good income, but most of all, a matter of saving these revenues to good use then give them (acquire assets that we generate passive income).
As the next step to achieve financial freedom is to save money we win with our employment and / or business.
Saving means spending as little as possible, which does not mean we have to live an austere life, but we always try to spend as little, and to avoid unnecessary costs, while giving us some treats from time to time to foster our culture of wealth .
But saving also means allocating a portion of proceeds to a stock savings will be used later to create or acquire assets that we generate passive income, money in this bag should not be spent, but only be used to create or acquire these assets.
My first million
Once you have saved enough money, it’s time to really start our journey towards financial freedom through the creation or acquisition of assets that we generate passive income.
For example, as we mentioned, we could start to buy stocks that generate dividends, rental properties, businesses where we do not have to get involved personally to work, etc.
It should be noted that to begin acquiring these assets is not necessary that we should have saved a lot of money, but we could get the money by borrowing or fail us in any case, partnering with others.
Then, little by little, the money we will generate our assets, we will invest in the creation or acquisition of additional assets, to have a good portfolio of investments based on passive income.
And finally, once we have enough assets to generate sufficient passive income to the lifestyle we want, without having more to work or depend on other people, then we say that we have finally achieved financial freedom.

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