The Best Tools to Get Started in Financial Education
What is Financial Independence?
During most of my articles, Financial Independence might sound like some ephemeral concept, without any real definition, but there is actually a pretty solid definition for Financial Independence, which I will paraphrase here for you.
Financial independence is understood as the status of having enough income or wealth to pay one's living expenses for the rest of one's life without having to be employed or dependent on others. This income, which you earn without having to work for it, is commonly referred to as passive income.
Basically, financial independence means you are rich enough to never worry about having to work for your money ever again, and that is why financial independence should be your main focus.
Most of us, average Joes, don't think about the future. Instead, we rely on investment advice from our parents, which often boils down to “buy a home, even you have to pay a mortgage for the rest of your life”. Unfortunately, that will only get you so far, and sometimes might even be counterproductive.
If you want to achieve financial independence, you'll need to dedicate time and effort learning about your personal finances, about how to effectively manage your money, so it's important to get financial advice from the right people. You might consider going to a financial coach or investment advisor for a detailed, in-depth plan on how to save your money and start investing, but for now, maybe the tips in the next section can get you started.
How to Invest Your Hard-Earned Money?
That's literally the million-dollar question. If there was a one-size fits all solution, we would all be rich by now, but unfortunately, there isn't. There are, though, a few key concepts that will help you get started on investing so that you can create your own path to financial independence later on.
For one, there are many investing apps in the market right now that allow you to manage your money effortlessly. Some of these apps will allow you to invest in stocks and share directly on the stock market. A few of them offer automated funds that will optimize your capital growth and let you make more money without having to worry about the stock market.
If you want to take the time to study and make your own investments, you can find a broker or investing app that lets you access the stock market directly and choose your stocks, ETFs, or funds to invest in.
It's important to remember that trendy words might sound like good investment ideas, but unless you know exactly what you are investing in, better to avoid them. As an example, don't start investing in cryptocurrencies simply because they are in the news all the time. Try to invest only when you have a good idea about the risks you are taking.
Best Investment Platforms Available in the Market.
The best investment platforms in the market will vary greatly depending on your country and goals. Some investment platforms offer access to your country or region's stock markets and will hold stocks and shares from the companies you decide to invest in.
Other investing platforms will allow you to have an automated fund that makes the choices for you about how to invest your money. These platforms offer you the advantage of not having to worry about when to buy or sell a stock, so it saves you time. On the other hand, since these funds are automated, you cannot really be sure if your money is being used in the best possible way.
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