Financial Freedom – How to Invest and Become a Multi-Millionaire
Some Misconceptions About Money
Most people believe that money and the financial system are too complicated to understand and they hand over their wealth to others to manage for them. Money is a charged subject because people add in morality and spirituality into it.
Understand the Money Game
The first step to understanding money is to understand the money game. When you begin to understand the game of money, you being to understand that there are ways of winning the game. Money investing appears complex because the financial industry make it appear as such so they can take your money and invest it for you. In doing so, they can charge you exorbitant fees that compound over time and eat into your earnings.
Take Control of Your Own Money
To take control of your money, you have to take control of your own investments and become a great investor. To be a great investor you have to be able to make decisions without perfect knowledge. In business you can wait until you have all the information before you make a decision, whereas in investing this is not always possible. It is also important to get started as soon as possible.
Start Benefiting from Compounding Interest Now
Many people believe that they have to have a lot of money before they can start investing. This couldn’t be farther from the truth. You should start investing with whatever you have so you can tap into the power of compounding.
Compounding is the effect of interest on your investments over along period of time. When you make the decision to become an owner instead of a consumer and start investing your money in the financial markets, you can take advantage of the growth of the market over a long period of time.
By doing so, starting with as much as you can, and committing to make regular contributions, you will grow your money much faster than if you waited until you had a large sum of money to invest.
You should start with whatever you have and tax yourself a set amount each month. This tax, if it was enforced by the government, would have to be paid. Now that you are taxing yourself, it should be treated as if it was compulsory and you must commit to paying it every month no matter what. After committing this tax on yourself into an investment account, you can save for your future and have financial freedom in retirement or sooner.
The benefit of investing your own money, as apposed to giving it to so called “professionals”, is that the fees and commissions that you have to pay will eat into your money without any marked improvement in performance. In a period of 10 years, no mutual funds have outperformed the market growth, which means that if you were to invest a small amount that was spread across the entire market, you would out perform 96% of mutual funds without paying any fees or commissions.
Most people are trading their time for money, and as an entrepreneur, that is the worst investment you make. Making regular contributions to an investment account, you create a business on the side that brings you income and ensures that you can live comfortably in retirement.
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Mehdi KA is an inspirational blogger and motivational speaker. He has traveled to over 43 countries and enjoys writing as a way to share his experiences and life lessons.
In theImportance.net he shares content that he believes can help people to achieve their goals and live a fulfilling life.