Who doesn’t dream of becoming financially independent? Your successful friends will tell you: it’s a dream come true. There are many myths and misconceptions around financial independence, and if you’re on this page, you want advice on how to go about it. But as with all progression ladders, the quest for financial independence is dotted with levels like in video games. Regardless of heritage, everyone is expected to start at the first level, go through different levels of experience, and realize their full potential to reach the final level.
Most people believe that the key to wealth is a well-paying job. Sure, it’s easier to accumulate assets if you earn that much money each month, but to increase your net worth, spending less than you earn is a must. Ultimately, it’s spending habits that mean a professional athlete earning million a year can quickly go bankrupt, while a bus driver can retire a multi-millionaire.
To escape the lure of spending, you must understand that income is not long-term wealth. Granted, it’s obviously a component of wealth, but the definition of wealth itself can vary. Many of us see wealth as total net worth at any given time, and we also see it as the part of your balance sheet that is considered equity. That is: your assets minus the liabilities.
You will understand that the only way to take advantage of investment opportunities is to have enough money to invest. In reality, if you have the soul of an investor, you achieve exceptional net worth in a short period of time. The returns generated by your assets can be life-changing: for example, a 10% return on €10,000 will only earn you €1,000 before tax, but the same return on a €1 million portfolio is €100,000. euros.
Becoming financially independent is a slow process that is learned over time. You take small steps every day, such as reducing your expenses, generating passive or active income, saving or even saving on your electricity bills. Whenever new opportunities arise, you can react on a larger scale than your previous investments. You can even take risks like living abroad, as long as you know there’s plenty of money and you know how to earn more.
On his website, Coloctionneur, Florent Fouque gives practical advice and tips to help you take charge of your financial future. For this, the author of the training offers a personalized support service to teach you how to properly manage your investments, in particular your colocation business.