Financial Freedom: 3 Sacrifices That Must Be Made

We come to a point in our life that we wonder if we are satisfied with our financial reality. Especially in relation to salary. In the end, the bottom line is that you can currently earn more than you earn today . Not only can, but should. After all, everyone seeks their financial freedom.

It is not quite a rule, but scholars make reflections about the age of 25 to 45 being the best in life. Even because many consider the phase of greater growth in the professional career . But this kind of thinking is changing from generation to generation.

In the time of our great-grandparents, for example, life was simpler. In some cases, only the basics were missing. In the next generation – of the grandparents – there was an improvement in the quality of life. The house was already better and many came to complete their studies. In the generation of our parents, this has evolved even more – of course, with exceptions.

In the present generation, we have problems. Some even worse than the previous generation. This was due to financial crises, which reduced the number of jobs and, consequently, decreased prospects. Before, everything was more assured, due to the economic stability that the country was.

This model no longer exists today. Training is not a concrete guarantee of employment or stability .

This causes many to sacrifice their personal lives to be able to work harder to increase profit. And achieve the least financial freedom.

Read also: Learn how to collect your first R $ 100 thousand

Achieving financial freedom

 Achieving financial freedom

From the current scenario, one must learn to transform . Or do you expect to continue living by the model of the past generation? As we have shown, going to college, taking good grades and getting a degree no longer guarantees the employment of dreams.

If you still believe that, you have to change. And changes require sacrifices. Then check out the three that need to be done to achieve the then financial freedom.

Current job

 Current job

The first step is to be clear about what you want out of life . With this, establish your professional goal . It is still possible to pursue a traditional career in a company, so if that is your goal, do not abandon it.

It is also possible to be a freelance professional, freelancer, have their own clientele and still doing what they like. After all, the internet has shown that this is actually possible. Or even want to be a public servant. Guess what? This is also possible.

No matter what, know exactly what your professional goal is. Because without that goal in mind, it will be harder to make money. When you choose conflicting paths, your potential is wasted. But when you become fully sure about what you want to do, it’s time to do what you have to do.

Put ideas into practice . Take risks, err and learn from them. Take control of your risks and do not stop. Remember that working on something you do not like is time wasted . So invest in yourself .

When you get a significant income, it’s time to start investing, too, your money. After all, it is important to have two sources of income.

Read also: The importance of diversifying investments

Comfort present by the future

 

This is something you need to sacrifice. You can do this within a 30-day challenge . The first step of the challenge is to share its three pillars of wealth building . In case:

  • Income
  • Savings
  • Investments

The first task of the challenge is to write down your spending for the next month. And in the simplest way possible. The second task is to consolidate all expenses into an expense worksheet . The third and final task is to analyze your spending so you can work out a personal budget for the next month.

Read also: Self-sabotage: 6 financial lies we tell ourselves

Comfort and comfort zone

 Comfort and comfort zone

Sacrifice these two characteristics of your routine. And for that, it involves investments . Consequently, it involves challenge. In that case, it’s a challenge to make your money work for you and he calls “invest $ 100 in Treasury Selic.”

If you already invest in Treasure Selic, the challenge then is to climb one more step. Then, invest in private securities, be it a CDB, LC, LCI or LCA. If you already do this, start investing in a debenture, multimarket fund, real estate fund or directly in stocks.

Definitely, just doing this does not guarantee financial freedom . However, just putting money to work already changes the investment outlook. With this, you begin to develop your self-discipline to invest more regularly , as well as motivation to go after new knowledge.

Regardless of your will, it is your responsibility to transform yourself in the face of world change . And for this, it is necessary to choose the easy way or the difficult one.

 

THE MYTH ABOUT RAPID INVESTMENT GENERATES GREATER PROFITABILITY

This is something common to hear. Fast and secure investment are conducive to generating greater profitability. But not quite.

This view may be somewhat utopian. By defining your application in the short term, you may experience a loss in terms of income, just for the given period. It all depends on the investment and the goal you want to achieve.

Read also: Investment funds or ETF: which is the best?

And that raises the ultimate question:

Does not fast and secure investment really generate greater profitability?

Does not fast and secure investment really generate greater profitability?

Investment in quick applications is a good option, but when it comes to profitability, there is a conflict. With quick applications, there is less time to get the return on equity.

That is, your income will not be greater. Or worst. In some cases, if there is a redemption before the stipulated deadline, you still risk losing a portion of what you have earned.

This in the matter of time. How much about safety, you can not take a chance. In parts, this is not bad, but it also does not guarantee a high return.

In this case, they are situations of comparison. And it depends a lot on your investor profile. If you are more conservative, looking for an immediate goal without supporting the capital swings, it is better to invest fast and securely.

Now, if you want to take risks, it is advisable to go after applications. Since they guarantee greater profitability.

Read also: How to start investing

Investment Options

Investment Options

With the desire to follow a fast and secure line of investment, even with low profitability, there are good investment options.

LCI (Letters of Real Estate Credit), LCA (Agribusiness Credit Letters), CDB (Certificate of Deposit) and Selic Treasure are examples for you. But it is important to warn that this type of investment should be part of any investor’s portfolio.

Since diversifying applications is the most appropriate to guarantee positive results in the growth of your income.

 

How to Invest In the Most Valuable Brands in 2019?

Last week, Brand Finance released the report with the list of the most valuable brands in the world . Because the company is a world leader in business consulting and evaluation, the list is considered the most respected in the market . And investors always use it to plan their financial strategies.

According to the survey, Amazon is in first place, worth $ 187.9 billion . The second place was with Apple ($ 153.6 billion) and then Google ($ 142.7 billion).

The top 5 is completed by Microsoft and Samsung . The brand created by Bill Gates and Paul Allen was valued at $ 119.59 billion, while that of Lee Byung-chull at $ 91.28 billion.

The list goes on with AT & T , Facebook , ICBC , Verizon and China Construction Bank .

Read also: Calvin Klein starts accepting bitcoins in stores in São Paulo

Because they are very valuable companies worldwide, it would be a dream to invest in them to get more money. And know that this is possible. So, let’s show you how you can invest in the most valuable brands .

 

Investment in the most valuable brands

Investment in the most valuable brandsSeven of the 10 most valuable brands on the list are from the United States. Which means your investment has to be international, even if you live in Brazil. But calm, which is quieter than it seems.

The American stock market had a delicate phase in the last quarter. Mainly by the trade war with China and the fight of President Donald Trump with the Fed (Central Bank) . Although it sounds negative, this, in fact, is a great opportunity to invest.

Especially when you have a bold profile, intending to invest in the long term.

The S & P 500 (Standard & Poor’s 500) is an important factor to evaluate for investments. Also because the acronym is an index composed of 500 assets that are listed on the NYSE and NASDAQ stock exchanges . These assets are qualified by market size, liquidity and industrial group representation.

Since the index’s appearance in 1957, the S & P 500 has undergone some periods of oscillation. But even with significant declines, there have been even better recoveries . And buying low you can buy more stocks with big returns.

Amazon, for example, is one of the leading companies in the index. The brand started high last year, but suffered the fall in the last quarter along with other large companies. However, since the beginning of 2019, shares have appreciated more than 466% .

Here in Brazil, a good way is through the Warren application. According to the platform, in-app equity investments involve much of the US equity fund portfolio involved with the most valuable brands . Like the aforementioned Amazon, Google and AT & T. Another interesting point is that if the companies get more expensive, you gain with the discharge. Without being impacted by the dollar variation.

 

HOW TO COMPARE INVESTMENTS: LIQUIDITY, RISK AND PROFITABILITY

 

Decided to invest but do not know how to choose the best financial investment? The first step before applying is to assess three basic points: what is profitability , risk and liquidity ?

Profitability is the speed that the investment yields over a period of time. Risk is the probability of losing money and staying with less money than at the beginning of the application.

Profitability is proportional to the risk ie the two are equally high or low. Stock market shares, for example, are high-risk investments, but they generate the highest returns in the short term.

If you want to make lots of money, you have to be willing to take chances too. However, we must compare the risk and profitability of two actions, since there are cases that both yield equally, but one is more risky than the other.

What about liquidity?

What about liquidity?

The third item to consider when comparing investments is liquidity . Basically, liquidity measures how fast it is possible to redeem what has been invested without losing money.

Investing is buying financial assets. Therefore, liquidity is the facility to sell this asset.

To measure liquidity, just look at the maturity of the application, the monthly or annual income. There are since investments that last for years up to those who, from a month, it is possible to withdraw money with minimal profit (or at least no loss).

In addition, there are also applications with daily or high liquidity . In this circumstance, it is possible to sell the asset at any time without loss. This is the case for some types of CBD and Treasury Direct.

So if the profitability and risk of two applications are very similar, it is worth checking which one has the best liquidity before applying.