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Posts Tagged ‘Savings’

The next step once we have developed our personal budget and have planned a good destination resulting balance is to simply continue as planned.

The more discipline we have to keep our budget, better results will, however, in the case of personal budgets, the fact is that very few people who made one, followed to the letter, so if we have not come to follow to the letter, at least we constantly review and keep it always as a guide or reference.

But what should follow the letter is to ensure that the balance amount corresponds to at least a certain percentage of our total revenue, and allocate all or part of it to a stock savings.

To achieve this, a council is to deposit this amount in a savings account at the bank (so we have it in a safe place and we are tempted to use it), perform this operation just have the money of our income whatever the we have to make payments (“pay us to ourselves first”) and, if possible, ensure that this operation is performed automatically (for example, ask the company where you work or where we have our bank account are responsible to allocate this amount to our account.

Once you’ve saved enough money, it’s time to really start our journey towards financial freedom through the creation or acquisition of assets that we generate passive income.

For example, as we mentioned, we could start to buy stocks that generate dividends, rental properties, businesses where we do not get involved personally to work, etc.

It should be noted that to begin acquiring these assets is not necessary that we should have saved a lot of money, but we could get the money by borrowing or fail us in any case, partnering with others.

Then, little by little, the money we will generate our assets, we will invest in the creation or acquisition of additional assets, to have a good portfolio of investments based on passive income.

And finally, once we have enough assets to generate sufficient passive income to the lifestyle we want, but we have more to work or depend on other people, then we say that we have finally achieved financial freedom.