Financial freedom or security is a dream of many people. Basically, financial freedom is the privilege that money works for you and money gives you independence. There are different methods for doing this. One way to achieve financial independence is by building up stocks.
Aplus asset: Ways to achieve financial freedom
So when thinking about financial independence, the first thing to do is to reflect on your own attitude towards money
Aplus asset: Manage your own money skillfully
First of all, it is important to divide your own money into sections. For this, you can visualize the 50-30-20 rule in your head.
If your calculated share of fixed costs is currently over 50% of your disposable income, you should minimize your own fixed costs. Change insurance, cancel the gym contract that you are not using anyway, or consciously accept savings.
Another 30% of your income goes into leisure activities. Here you are welcome to treat yourself to something. Go to restaurants, go on vacation, enjoy excursions or buy products that suit your recreational consumption.
Lastly, you should save the remaining 20% of your income. This is the smallest but most important building block in your financial plan that will bring you financial independence.
Aplus asset: Develop sources of income
In the long run, you will not make it to financial independence if you only exchange time for money. A job to earn money will therefore not be enough. Instead, you should use your 20% monthly savings and use it to develop new sources of income.
With this income, it is of great importance that you do not exchange time for money here. Instead, you are consciously letting your money work for you here.
Aplus asset: Invest money in the stock market
You can also earn passive income on the stock market. You can make money by investing through a broker of your choice. This is possible in different asset classes. Why does that make sense? No money is earned faster than with a return that is distributed per year or order.
The income that you save should therefore be invested wisely. A mix of net income from work, passive income and investing in active financial instruments is a good mix that spreads the risk and gives you financial freedom quickly.