Financial Freedom

 One of the most important things you can do as an individual is to be an investor not a consumer. What does that mean? Simply we buy assets not things.  Assets hopefully go up in value while things typically go down in value. 

We all need the essentials in our daily lives food, water, and shelter, but the $5 coffees, the latest electronic gadget, and numerous other expenses eat away at your financial freedom.  Whether it's real estate, stocks, a business or any other type of investment that has the potential to increase in value or grow your income this is where you need to place a percentage of your income.  Whether it's 5% or 10% or even 1% begin to invest your money with a plan to grow your money over time. Because as we all know time is passing just like the river that continues to flow, and if you make the decision today to be an investor and not a consumer you have more power to create the future that you desire. 

You are empowered. 

Some simple changes today can give you the freedom you desire.  A word on investing.  Investing involves risk. You will lose money on some of your investments That's ok investing is a marathon not a sprint. Many investments like real estate that are purchased at the top of the market and seem expensive turn out to be bargains when viewed ten years later.  Real estate can be a hedge against inflation and also provide income.  The same is true for equity investments if you invest in the S&P 500 at the top of the market and it goes down a few months later don't become discouraged.  Simply buying a low cost S&P index fund that invests in the top 500 companies in the U.S. and automatically adds and drops companies so you always have the top companies in your portfolio. Long term investing smooths out the short term volatility. 

A word on company sponsored 40lK retirement plans.  When someone gives you free money take it! Many companies will match your investment up to 6% and you can do this with tax free money.  The nice thing about a Retirement plan is that it forces you to think longer term.  And when you change jobs you can take that money with you. 

The power of Compounding.  When you let your money grow over the long term you are able to take advantage of compounding that is letting any annual interest to grow year over year. Start today to make sure your money works as hard as you do.  By paying yourself first, saving 10% of your money, and investing in assets such as real estate and stock index funds you can turn acorns into oaks and wake up one day wealthy.

Remember your greatest wealth is your health. And wealth is excellent for your health. 

With Love,

Coach K