Financial independence means having enough funds to enjoy a comfortable standard of living with your family, without being worried about future expenditures, but is it easy to achieve?
In this report, the Colombian website Finanzas Personales reviews a number of mistakes that should be avoided in order to achieve financial independence and ensure stable financial incomes in the long run.
Neglecting passive income sources
Passive income is money that can be earned without making more daily effort, such as real estate rent, dividends, etc., and passive income is one of the most important means of increasing your financial balance without having to work 8 hours a day, 5 days a week, and the more sources of income The negative, your dependence on the job decreases, and you become closer to achieving financial independence.
Ignore the risks
When making any investment, there is an assumption that there is some risk, and the greater the risk, the greater the chances of making a profit, and in order to achieve sustainable profits and ensure financial independence, the size of the risks should be analyzed and managed well at different stages of time.
Investing in liabilities
When it comes to increasing your income, you should focus on owning assets and avoiding investing in liabilities, because assets give you the cash flow needed to buy what you want and secure your future expenses.
American businessman Robert Kiyosaki, author of “Rich Dad and Poor Dad,” says, “Assets are all those commodities or investments that generate money for us, while liabilities are those that take this money.”
Invest in one sector
Diversifying investments is the best way to reduce risks. Investing in various fields guarantees financial profits in light of market fluctuations that affect some sectors and benefit others.
Most investors agree that diversification does not completely eliminate losses, but it is the best way to achieve long-term profits and minimize risks.
Wasting your money
One of the most important factors that help you achieve financial independence in the future, is to be able to properly manage your money at the present time and avoid wasting it, and to benefit from your savings in creating new sources of income.