Financial FreedomPosted: March 11, 2008
I’ve been thinking a lot about the above for some time now. Not that it has never crossed my mind before, just that I’ve always been one of those people who’s pretty happy with the small things she has in life.. In other words, too scared to part with my money or lazy to acquire information. So why think about it now? Maybe it’s because I’ve got some free time in my hands (my Supervisors won’t be pleased with this).. Or perhaps, I’m just so in love with these two properties that are way, way off my budget. Depressing, ain’t it?
Though I may never be able to afford such homes in the near future, the thought definitely triggered me to start making my money work harder. Those saved in the EPF, for instance, are gonna be sitting there untouched anyway. So why not exercise them a bit? Plus, I won’t feel that I’m parting with my money whenever I’m putting my additional investments.
So what’s “financial freedom” anyway? I know Wikipedia isn’t exactly the best source for accuracy, but it certainly is the best source for dummies on a particular subject. And lazy-bums too, which I am at the moment, so I’m just gonna go ahead with its definition. Basically what it means by having financial freedom is when you don’t have to work for money anymore, yet, you have money to cover your expenses. That’s pretty ironic since most of us on this planet aren’t heiress or the next in line for a thrown.. But in this day and age, apparently, there are people out there who make millions just by basking around or sipping juice.. But I’m digressing.
For us normal people, the two most popular ways to not work but have money is: (1) for us to generate enough “passive income” to cover our expenses over the years, and/or (2) to build some sort of “nest egg” that is large enough so that it can be liquidated over time to cover our expenses. Unless you’re J.K Rowling or some other well-known authors, don’t count on writing as a great source of passive income. Property or real-estate investment is a good option, though I personally don’t know anyone my age succeeding in such an endeavour, yet. Yeah, those sorta investments take time and a lot of initial outlay to begin with. So what’s left that is affordable is investment in unit trusts, stocks and bonds.
There are numerous options for investor wannabes out there. I’m still doing my homework and poking through information. Hope to nab a good deal.. Who knows, we might generate enough “nest egg” in time for our dream home.