This is something I have mentioned before, but will always hold true. The daily decisions we make (or ignore) have a compounding impact on our financial lives.
I'm going to put a few financial items out there as food for thought.
Things to decide and take action on:
- Retirement Investing
- Passive Income
- Speculative Investing
Are you doing any of the above things?
If not, then the question you need to ask yourself is - do I want to rely on a paycheck forever to support myself?
Essentially that's what life becomes if we don't have money coming in as passive income or in a nest egg for retirement.
I know, I know....no money to invest.
Want a $100,000 in a retirement account?
Do you drink coffee? Well, I just found $100,000 for you come retirement.
Yeah, you aren't giving up your coffee. THAT IS NOT THE POINT. Find something else you spend money on that you really could do without. Coffee is just an example.
Let's dive into this some...
Passive Income
Passive income is money that comes in from an asset or investment that does not require much additional effort from you once established.
This can be anything, such as dividends produced by stock holdings or interest payments from debt holdings (bonds, loans, etc) and of course there is income from rental properties, one of my personal favorites.
Bottom line - if you do not have any passive income coming in then you are 100% reliant on a earned wage to produce income.
Speculative Investments
One should use a small percentage of their investment funds for this. It's to take shots on investments that could produce out sized gains to create additional wealth. 10% of a portfolio is the general recommendation.
This can be for something like crypto. High reward possibility, but also money you can lose without it wrecking you.
The point of this post is to give you a bit of a wake up call if you are not already doing any of this. Take small steps that allow for freedom!