Financial Freedom Amount
Financial freedom! How many of you know what your financial freedom amount is? Are you waiting to live month by month and have the € 25 you save for your retirement savings account making any big difference when you reach 65? What financial education do you have? What simulations did you make? If you get sick today and you can’t work for 3 months, do you have a financial reserve, a rainy day fund that allows you to pay your expenses in those 3 months?
When I don’t have my rainy day fund covering at least 3 months of expenses I start getting stressed. Some of my Investments are longterm and I don’t want to touch them. I am not always on equity highs and removing cash would harm my margin and I could be wasting big future profits.
Imagine you invest now aggressively 3k (3 months expenses) and you don’t have a rainy day fund. Your Investment goes down 10–20% normal yearly DD and you have an emergency that you really have to remove all funds. Your available equity would be 2.400$. You “lost” 600$ because you had no plan! After 6–12months your account would be at maybe 3.900$
First I want my investors to be financially educated, averaging investment, increasing gradually on a monthly and healthy basis after having met the first steps to improve their personal home budget and rainy day fund and avoid any above mentioned scenario. Life gets so much easier.
Enjoy the time with your family, but make wise investments (starting with what you buy and spend). There are so many great videos and articles out there on how to improve your budget, small things make a big difference.
Why not ask me more about any of these topics??? I am here to help! You are afraid to invest that is all right, but saving should be a priority if you want to be better in 10–20–30 years. You will not get younger over the years and if you don’t make any changes today, don’t expect to see any results in the future.. INVEST IN YOUR FUTURE, or at least improve your financial education and prepare yourself better for any eventuality.
Many still believe that you can invest 200$ and turn them into 10k, well good luck on that. Going high risk winning big, but losing even bigger don’t get you anywhere closer to your long term goals!
Even with a great returning portfolio, not investing on a monthly basis won’t bring you far. But if you work on your budget and keep saving you can see great short term improvements. It wont happen in one month or two. No bank made huge profits aiming quick and fast returns! Retailers use high leverage, banks use low leverage, guess who wins and who loses at then end? I trade my account as an investment portfolio with low leverage and patience.
Wish you all an amazing week and Happy Easter.