Personal Investment: Leading you to Financial Freedom

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Investment is a not just a noun; it is a skill. One must need to hone this skill to be better at it. Being a good investor will then lead you to financial freedom. It is that point in time where you no longer strive hard just to gain profit. You no longer lay awake at night just to think what you should do to make money. But how will you reach this level? Here are steps towards that goal of financial freedom:

Saving

This is the preliminary stage, wherein a person works hard and saves up money. The thinking of this person should be saving up money to invest into something which shall eventually lead him or her to financial freedom. This stage happens normally for professionals in their 20's, therefore the energy and stamina of these people are very high, which enables them to work hard.

Investing

After saving up enough money, individuals who strive hard for financial stability will likely invest their finances into something worthy. Having an investment personal will be your most crucial stepping stone into reaching everybody's role: financial stability. Being an apprentice in this field, one must always explore things and welcome learning. It is indeed true in this situation that experience will always be the best teacher. He or she must be able to develop skills in determining what investment should he or she takes. This can be learned through experiences with different risk levels of investments.

Generating Profit

Now that investments are made, it is now necessary for that person to generate profit. Profit is the goal of people in their middle adulthood. They never stop in accumulating money for the reason that they are saving it up for their retirement plan. They always optimize and maximize the return of their savings and investments. An important aspect that must be remembered here is that a person must earn more and desire less. Buy only things that you need; do not drain your pockets just to buy something which is not a necessity.

Preservation of Wealth

Being successful in attempts to generate profit will eventually lead you to the list of successful entrepreneurs. That person is now stable financially therefore; focus now shifts from profit to preservation of wealth. He already has enough and now his goal is to protect it from invaders. That person will now engage his finances into something less risky yet stable. Passive source of income is now the source of additional wealth for that person. Most people nowadays rely on real estate as their passive source of income.

Retirement

Being self sufficient, you now attained the level of financial freedom. You no longer worry about the financial matters of your investments. You have enough already and is now ready for your retirement. The legacy and wealth built will now be passed on to the next generation, probably the child of yours. Your only worry will be what you should do to be able to enjoy the fruits of your success.

SOURCE : http://goarticles.com/article/Personal-Investment-Leading-you-to-Financial-Freedom/5490549/