[pedzone_18]

want to add 1 point here.

Avoid getting on too much debt or get out of DEBT as much as you can...yes, we all know there's a good and bad side of it..no debate there but it is still DEBT that will dry your cashflow.

if you cant make out of it, minimize so you can still have a good sleep over your debt...

[TSO]

Clearly everyone above me has said one thing or another. My advice to you:

First, gather your capital. This is why you're saving money in the first place and why you want to be economic with your lifestyle. Avoid debt if at all possible. This is what everyone else is saying, and I agree completely.

Second, determine which amount of your capital is "disposable" (meaning if you lose 100% of your investment your way of life won't change) and deploy them to vehicles that generate returns higher than typical banking, based on both risk tolerance and knowledge of evaluating investments.

Third, during the first and second phases, study how to appraise investments, particularly stocks (because you analyze the businesses that practically create the rest that aren't tied to commodities or currencies). It doesn't have to be overkill, but this is necessary if you want direct control over your portfolio.

Fourth, NEVER EVER "buy and forget". This does not equate to "buy and hold forever", as it is YOUR responsibility to oversee the performance of your investments and evaluate their position in your portfolio. Even if it's a mutual fund you still need to know if it's worth investing in.

Financial freedom will come once your after-tax passive income exceeds your expenses.

[OMG.27]

want to add 1 point here.

Avoid getting on too much debt or get out of DEBT as much as you can...yes, we all know there's a good and bad side of it..no debate there but it is still DEBT that will dry your cashflow.

if you cant make out of it, minimize so you can still have a good sleep over your debt...

debt is not a dirty word. .... remember billionaire fella borrow money to the hilt to various local and foreign banks in creating their business empire.. just my cent. because when you say debt, the first thing that comes to the mind of an ordinary people is totally bad and not thinking about its good outcome when you do it responsibly..
Post Merge: Sep 19, 2012, 03:52 PM

Clearly everyone above me has said one thing or another. My advice to you:

First, gather your capital. This is why you're saving money in the first place and why you want to be economic with your lifestyle. Avoid debt if at all possible. This is what everyone else is saying, and I agree completely.

Second, determine which amount of your capital is "disposable" (meaning if you lose 100% of your investment your way of life won't change) and deploy them to vehicles that generate returns higher than typical banking, based on both risk tolerance and knowledge of evaluating investments.

Third, during the first and second phases, study how to appraise investments, particularly stocks (because you analyze the businesses that practically create the rest that aren't tied to commodities or currencies). It doesn't have to be overkill, but this is necessary if you want direct control over your portfolio.

Fourth, NEVER EVER "buy and forget". This does not equate to "buy and hold forever", as it is YOUR responsibility to oversee the performance of your investments and evaluate their position in your portfolio. Even if it's a mutual fund you still need to know if it's worth investing in.

Financial freedom will come once your after-tax passive income exceeds your expenses.

The above quote is in the process on building and allocation phase. I will insist on the first part of the paragraph that DEBT is a kind of LEVERAGE. It is not a bad idea to be in debt as long ( exemption )as you use that debt deligently and economically............

[pedzone_18]

debt is not a dirty word. .... remember billionaire fella borrow money to the hilt to various local and foreign banks in creating their business empire.. just my cent. because when you say debt, the first thing that comes to the mind of an ordinary people is totally bad and not thinking about its good outcome when you do it responsibly..
Post Merge: Sep 19, 2012, 03:52 PM

yes, i cannot argue on that..but for me financial freedom is more personal than business matter..for sure you can use debt to your advantage.. as you said billionaires do (by the way maybe as business entity not as an individual borrower-limited liability)..

as a starter to achieve financial freedom...dont want to start my financial journey with debt.

[TSO]

@ OMG:

the reason why I insist on debt-free is because leverage, as you know, is a magnifier of gains and losses, and people fall all too easily into the "easy, high returns" it generates, lever up more than they should, and self-destruct from an "unexpected" event.

Even if you use just a little bit of it and leverage your returns, what happens when you're wrong? You get hit by a margin call/exercise, you're forced to reduce your equity/funds, or whatever, and it can be a drag on performance as a result.

Pros can mitigate "wrong decisions" to an extent but in the end everyone makes mistakes occasionally. What more if you give leverage to a newb?
Post Merge: Sep 19, 2012, 07:21 PM^ in addition, one's trading/investing style also determines whether leverage is dangerous or merely somethingsto be wary of.

[OMG.27]

@ OMG:

the reason why I insist on debt-free is because leverage, as you know, is a magnifier of gains and losses, and people fall all too easily into the "easy, high returns" it generates, lever up more than they should, and self-destruct from an "unexpected" event.

Even if you use just a little bit of it and leverage your returns, what happens when you're wrong? You get hit by a margin call/exercise, you're forced to reduce your equity/funds, or whatever, and it can be a drag on performance as a result.

Pros can mitigate "wrong decisions" to an extent but in the end everyone makes mistakes occasionally. What more if you give leverage to a newb?
Post Merge: Sep 19, 2012, 07:21 PM^ in addition, one's trading/investing style also determines whether leverage is dangerous or merely somethingsto be wary of.

As you see though that "if you fail to plan, then you plan to fail "....  never should you focus on the "wrong decisions or mistakes "because if you will not experienced the mistakes in investing, then you wll not learned...  If you know the basic, everythings follows.......

people was been easily deceive by high returns for the reason that they wanted to attain riches overnight..

behind of these things, don't be afraid in mistakes or wrong decisions. At the end of the day, you will be the one who wiegh in all the facts and knowledged you gain from doing the wrong result.... The best teacher in all kinds of investment is mistakes.....

Leveraged accompanied by time is the most precious allied to financial freedom....
Post Merge: Sep 19, 2012, 08:21 PM

debt is not a dirty word. .... remember billionaire fella borrow money to the hilt to various local and foreign banks in creating their business empire.. just my cent. because when you say debt, the first thing that comes to the mind of an ordinary people is totally bad and not thinking about its good outcome when you do it responsibly..
Post Merge: Sep 19, 2012, 03:52 PM

yes, i cannot argue on that..but for me financial freedom is more personal than business matter..for sure you can use debt to your advantage.. as you said billionaires do (by the way maybe as business entity not as an individual borrower-limited liability)..

as a starter to achieve financial freedom...dont want to start my financial journey with debt.

Billionaire starts first as an individual borrower before he expand into a business entity.......... everyone can used DEBT to anyone advantage....

of course, nobody wants to start the financial journey having debt..that's is why it is included in the basic foundation.. when it goes on, you will know that good debt will help you next to much prosperous passage.....   

[pedzone_18]

Good thing ive bumped on this video..w/c was recently shown (i guess?)

http://www.youtube.com/watch?v=HN_kM-pE1Hs&feature=player_detailpage

http://youtu.be/HN_kM-pE1Hs


before using debt as a leverage...master yourself first to have focus and discipline as a basic foundation.

This is a good start to achieve financial freedom.

[makemoneyathome]

So actions to achieve financial freedom should be directed in two ways:
Generate new (a few) stream of income (passive income!)
Save money (at least 1% of your income if you cannot save more)
Change your mindset into entrepreneur mindest

How can you generate new streams? Think about your own business. I would suggest online business. This of course will require a lot of research and work, but it will pay off. There are thousands of honest guys or bloggers on the net who will tell you exactly what you have to do to achieve financial freedom. Read that stuff, educate yourself, plan and implement. Learn from your mistakes. Most off all: be patient as financial freedom doesn't come overnight. This is a slooow process.