Saturday, September 13, 2014

My Basic Equation to Financial Freedom

 Backyard rice field Philipines

To reach financial independence I need hard work, frugality and investing.

My equation is this: (INCOME- EXPENSES) = INVESTMENT. 

I have to maximize my income then minimize my expenses and then invest to DIVIDEND GROWTH STOCKS.

Investments create $$$.

$$$ will be use for basic needs and wants.

How to maximize my INCOME? Currently I have 2 full time jobs that pays decent amount of money.
How can I minimize my EXPENSES? By riding a bike rather than driving, by bringing my own lunch at work rather than buying, by using the public library for entertainment, by going to the park rather than going to Disneyland, by becoming a minimalist and avoid buying things. There are so much ways to avoid expenses, there are so many ways to save money and be frugal. We have to learn about it and apply it in our daily lives.

How can INVEST? First I need to save to invest, how can I invest if I don't have money to invest in the first place lol! Then I search for big blue chip US company that has long history of paying dividend and increasing it yearly. I started with the Dividend Aristocrat.

It took me a long time reading books just to get the basics of stocks. Im no expert on stocks I admit, I will make mistakes here and there but these are the price I have to pay to reach my goal, I have to take the risk because without the risk there is no reward. Besides there is no better teacher than experience, we cant buy experience and we cant learn it from  school.

My ultimate goal is to be financially free where I don't have to work for money and go back to Philippines for good the family and start anew.

Why Philippines? That is my homeland and that's where my heart will always be, and my dollar can stretch a long way there. We've been in so many places around the globe but too bad I haven't explored my own country yet.

How about you, where do you plan on retiring? Any place in mind once financial independence is reach? Share your thoughts at the comment section.

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