Secure Your “Retirement” with Financial Freedom

The core of Financial Freedom

Financial freedom is usually known as “having enough savings, financial investments, and cash on hand to afford the kind of life we desire for ourselves and our families. This term is becoming a lifetime target for most individuals. Let’s imagine that we can retire, spend our precious time doing what we like, or pursue the career we want without being driven by earning a set salary each year thanks to the savings we have. What a dream!

There is a reason why we can believe in a future where we are financially free. It is that financial freedom does not require you to be born into a well-fixed family or be a wealthy businessman who gets tons of money each month. This can be achieved as long as you set your goal and build a proper financial plan. To be specific, financial freedom is all about letting your passive income, from your own business or assets, exceed your expenses.

How to get to financial freedom? The amount needed for financial freedom differs for each of us due to our various living standards. However, it follows the primary step: set your life goals, define the amount of money you need for the purposes, then go for it!

Set your life goals

1) What your lifestyle requires: You need a house, will you get married and have kids, when will you retire…?

2) How much you should have in your bank account to make that possible?

3) What age is the deadline to save that amount?

Remember that the more specific your goals are, the higher the likelihood of achieving them. You can not accomplish everything you want in a month, of course. Nevertheless, a year is a long time to make progress on your achievements. You need to ensure your goal is tied to a specific number you want to hit. When you have your goals defined, you can start working towards them without realizing it.

Figure out your “number”

A goal-based approach helps you determine how much money you should make or expense when creating your monthly budget.

For example, if you are 40 and want to retire by 55 to spend time on your hobby instead of working, you have to make sure that you have enough financial backup to pursue a second career at 55. Considering the inflation rate, years of expectancy post-retirement, and your monthly expenses (now and then), you must calculate your retirement corpus. Next, you can calculate how much money you must save monthly to create that corpus in the given timeframe.

Let’s say you figure out that you will need 500,000 dollars before retiring, and the Interest is 12% annually; you will need to invest ~ 1.000$ monthly if you start now.

Of course, the number will be adjusted based on inflation, life changes, and other add-in goals along your journey; you can calculate the exact number needed here. After having a specific number, start your passive investments as early as possible, even when it is in small amounts, then let the compounding show its magic.

After having the number you need, it is time to draw an earning plan and start saving.

Execute your plan: What to keep in mind to get your financial freedom

Each of us will have a different plan to follow our financial goals, but whatever they are, remember to follow the instructions below to make the goals more achievable.

Clear off the Debt

The biggest roadblock to financial freedom is definitely debt. And the worst kind is credit card debt and other high-interest consumer loans with interest charged between 30 to 40 percent. Therefore, make it a point to pay off the full balance each month.

Though other loans with much lower interest rates, such as student loans and mortgages,… may provide certain tax benefits, being debt-free is even a better option than having a good loan. Paying these lower-interest loans is essential since on-time payments will build a good credit rating.

“Pay yourself first.”

If you haven’t heard the expression “pay yourself first” before, it means putting a specific amount of money in your savings account before paying other things, such as bills.

Many people only use whatever is left over after paying all expenses to invest, which usually isn’t substantial enough to help you experience financial freedom. The act of “paying yourself first” as you deal with it by making you guarantee that you’re always putting money aside to invest in yourself. After that, if you don’t have enough to cover those bills after investing, you’re forced to pick up a side income to make up the costs, or you have to limit your daily spending.

You can pay yourself first in other ways too. For example, if your company has a retirement savings program, you can ask to have money withdrawn for your retirement. That way, you’re investing in yourself and your future first. The money gets deducted from your pay, so everything left over is money you can put aside for your bills and expenses.

Increase your passive incomes

Fortunately, your 9 to 5 can afford savings, daily expenses, and emergencies. But if it is not, you should look for money outside your current job to increase your income streams with passive income such as: selling good content (blog, ebooks, courses), becoming an affiliate marketer, buying properties and renting them out, investing in stocks, invest in construction asset,…

You may get interested: Passive Income, How To Get It Working For you. 

Financial freedom can be difficult due to growing debt, cash emergencies, medical issues, and overspending. But with discipline and careful planning, you can make it possible.

Stay Educated on Finance

Remember to follow and review relevant tax law changes to ensure all adjustments and deductions are maximized. You also need to keep up with financial news and developments in the stock market or other investment types and adjust your investment portfolio accordingly. Knowledge is the best defense against scammers who prey on unsophisticated investors to turn a quick buck.

Once you’ve gotten to a point where you’ve amassed a decent amount of wealth, either liquid assets (cash or anything quickly converted to currency) or fixed assets (property or anything not easily converted to cash), do not hesitate to get a financial advisor to help you stay on the right path.

Live Below Your Means

Financial freedom requires you to develop a mindset focused on living a good life with less. Many wealthy individuals developed the habit of living below their means. For example, in 1958, Warren Buffett bought a five-bedroom home for $31,500 and hasn’t gotten rid of it since. His frugality might very well be one of the reasons why he’s one of the world’s tttttttttt people.

There are many books, instructions, and programs to help people adopt a minimalist lifestyle. When you don’t have enough to afford all you want, it’s time to focus on the things you need. It can drive significant gains for your financial health.

You can also follow the 50/30/20 budget rule, popularized by Senator Elizabeth Warren. It is a guideline to achieve financial freedom by dividing income into three categories of spending: 50% for needs, 30% for wants, and 20% for savings and paying down debt.

An online data analysis and reporting tool may help. You can know how much money you’re spending, which categories you’ve overspent in, how much you have in your accounts, or how much debt you have.

Take Care of Your Well-being

This is a rule which not many people have thought about when it comes to financial topics. The principle of proper maintenance also includes taking excellent care of your physical health. Robust health has a significant positive impact on your economic life as well.

Poor health maintenance has negative consequences on your financial goals. Some companies have limited sick days, which means you may lose some income once paid days are used. Obesity and other dietary illnesses also make insurance premiums skyrocket. Poor health may force early retirement with a lower monthly payment for the rest of your life.

Therefore, do not just focus on making money. It would help if you cared about your physical and mental health first. Spending money on regular doctor visits and following medical advice about any problems you encounter can. You can also adapt to a basic lifestyle with more exercise and a healthier diet to prevent losing money on health problems.

We hope these instructions can help you reach your financial targets. If you are looking for a way to increase passive income to assure monthly savings, Foundation Capital’s investment principles may help you. Don’t hesitate to connect us to meet our financial advisors.

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

Things you should not miss out on for a safe investment journey

Start with a small and secure investment with investing strategy

Investing a small amount every month is a great way to minimize the risk. Kick off with $50 a month into a single fund or an amount of money you can afford.

Small and regular investing will help iron out the market’s highs and lows. You watch out for the ups and downs, invest more when the market is performing poorly, and the price is lower, and fewer when their value rises.

By starting small, you can test different investment techniques & strategies and choose which suits you best. Once you are confident that you have learned all the settings and how the market reacts and functions, continue with a more significant amount.

Going for a single, ready-made fund that holds investments worldwide is also a good idea. There are always model portfolios on investment websites. These include a mix of some of the most popular funds. You can use them as templates to build your own portfolio, whether you are cautious, balanced, or seeking income.

Get yourself educated and be wise to the advice

You can’t be a successful investor if you don’t understand what kind of investment you want to make, even when you trade in the stock market, cryptocurrency pairs, real estate, or construction.

To know the basic investing fundamentals, there are some notes for you:

  • Find and consult reliable investment experts in your investment fields. This is very important for beginners. But there is one thing that you need to keep in mind: avoid taking every advice you get. Multiple options are always available to every investor, but the choice lies with you. Every investor has their own plans and strategies. What works for them might not work for you. Try to find someone who works in the investment type you are taking and has already achieved what you dream of. Then, consider taking the information which is helpful to you. Too much information can make you indecisive.
  • Update yourself with the investment market and knowledge in reliable sources. Once you have a rough idea of how the market functions, you can make better decisions. Moreover, the world can change after one night; you may need to adjust your investment strategy.
  • Try the investment demo strategies from credible investment companies. Every broker gives demo money to investors to trade in the market in real-time. This allows you to test your system in the market without the risk of losing your actual money.
You can’t be a successful investor if you don’t understand what kind of investment you want to make,.

Protect yourself from Online Attacks and Malware

Lots of investors have not thought about this. Online thieves are much more dangerous nowadays. Within a matter of seconds, you can lose everything in your investment account. Therefore, make sure that you follow these technology instructions when investing:

  • Have good anti-virus software installed on your computer. Good anti-virus software will be an excellent guard for your possession since it can immediately block all threats like viruses or malware and help to remove them from your system.
  • Do not click on any suspicious links which anonymous senders send. There are a lot of spam emails containing links to infected websites, or attached files, that can infect your devices.
  • Set a complex password for your investment account to reduce the chances of being hacked. Do not save your personal information like your name, date of birth, etc., as passwords, in easy-to-find places since others or hackers may find them and break into your account.
  • Avoid trading using a public network since hackers using the same network can hack your system and steal all your data.

5 Financial Habits For A Secure Future for you 

Create an assorted portfolio and assess your risk

Before choosing where to put your money, remember to decide on your risk profile. If there’s only one rule every investor must follow, it’s to have different investments, or “don’t let all the eggs in one basket.” If you bet all-in-one and that investment goes wrong, you risk losing them all.

So, when drafting your investment strategy, always invest in different options to give you better flexibility. Moreover, the entire market is volatile, and it fluctuates rapidly. Hence, you must keep updating yourself with all the information about each investment to adjust it when needed.

If you want to make sure that no matter what happens, there is always something left in your account so that you won’t be desperate, do not miss out on multiple types of safe investments. It may take a long time to earn significant interest (by quarters or years), but it will help you get an annual passive income and almost always stay in your baskets.

Consider starting a secure investment with Foundation Capital 

Always choose a reputed Investment Agent

First, decide which market you want to invest in, then choose a regulated and reputed broker.

To make sure they are reliable, you can check if the company has all the necessary licenses to conduct business and has a local office or not. Only if a broker is registered can you safely use their platform as the regulatory bodies have approved them. Or you must search for investors you know and be sure they have experience with the companies. Do not just follow some influencers or advisers from some communities on social media.

Also, a trustable financial company will always consult its customers with different strategies. It is obvious to see when and how you can get your benefits for each investment package. Also, you need to understand all the solutions the company offer when something happens unexpectedly, making you withdraw the investment sooner than you thought.

Be calm, take a break and stand out from the crowd.

Investment is not for ones who get freaked out easily. Even when you are winning or losing, you must consider every choice carefully.

Be wise to know when to stop when your stock (or any other type of investment) is reaching its peak. Everything can fall down after a week. This is also the case with losing money; your inherent reaction would be to recover the lost money, then make irrational decisions and lose even more of your money.

Once you get the taste of making money, it’s hard for you to stop, especially when it comes to FOMO with so much temptation from social media when they rush to sell or buy any asset.

Thus, sometimes, you would better take a deep break and rethink your strategy or wander somewhere and come back when you feel more energized and focused. After that, convince yourself to stick to your goals and plan, and don’t get swayed.

Those are some pieces of advice you must know before investing. The achievement, of course, may be different for each of us. But no matter what happens, remember to always leave a way back for yourself with at least one safe investment in your portfolio. Good luck!

If you want further help before investing, seek assistance from a financial adviser, or looking for a low-risk investment package, Foundation Capital is here to help. 

How to Start Investing with Foundation Capital

If you want to generate a sustainable passive income stream, Foundation Capital is one of the most reliable organizations to invest in.  Our process has been refined, perfected, and proven over the past 12 years of renting our clients’ assets to the construction industry.

For more detailed information on how to make a capital investment in construction with Foundation Capital, as well as the terms, conditions, and risks, refer to the following FAQs and guides:

(Support) What Is Foundation Capital and How We Invest?

(Support) Construction Investments Vs. Others

(Support) Foundation Capital FAQ Library

(Support) Schedule Your Free Consultation

(Social Media) Foundation Capital Facebook

(Social Media) Foundation Capital LinkedIn

(Social Media) Foundation Capital Twitter

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