Learn all that money represents in your life, in all dimensions.
Money in the head represents one thing. I took this mindmap in the Bastter forum by some forist who posted it, found it sensational and sums it up very well. The mere interpretation of this image would be worth a book by itself.
I think that for those who work, study, invest and want to one day achieve financial independence, this image is fundamental, it shows all the dimensions, the choices, the trade-offs, the resignations, the good and the bad side, balance, and growth. All in one thing. Remember to take care of your health, eat well, play sports, take care of family, invest in your work and study, save, study investments and apply surplus.
The road is long. This is the subtitle of this blog – A long road to Financial Independence.
You have to follow a good path and have a plan, control the risks, take care of and love the people around you, take care of the family, practice your hobbies and read good books. Here is the photo (I suggest saving and even print and put in a visible place in the office or in the room, this photo is deep).
The board talks about the 3D view of money:
1D: Salary (active remuneration) – The MOST IMPORTANT item in your financial life.
2D: Savings ability or TRA (Asset Retention Rate) – Here’s what’s left after you pay all your basic bills, the more leftovers you have left.
3D: Knowledge of the various assets in which you can accumulate assets: Stocks, real estate, fixed income, real estate fund, livestock, own businesses, commodities, works of art and so on.
The ideal is to earn a lot, save a lot and invest well, in things of value, and controlling the risk. This will gradually build up your wealth and generate income to reinvest or spend on your life. Few people get to this stage of life to live on with earned interest, dividends, and other incomes so that you will increasingly depend less on your work to survive.
It is necessary to read, study and become interested in the various products, besides diversifying between several classes and within the same class (buy many different stocks, different real estate funds, different fixed income, etc.)
The left side talks about your standard of living: the more you raise the less standard you will get and the farther you will stay from your financial independence. For example, if you have 200,000 reais today in your hand you can buy a Land Rover in sight and if you show through the streets of the city or you can apply in fixed income and earn $ 2000.00 a month cleaners, this is what we call trade -off or choices, resignations, and priorities.
Particularly my priority is to contribute and spend as little as possible because money has a cost. If you buy this Land Rover, in 6 years it will be worth R $ 100 thousand, if you put this money in a fixed income at 1% a month you will have R $ 400 thousand, generating you an income of R $ 4000 reais a month. Superior, quietly to the average monthly gains of 80% of the Brazilian people, that is, a simple car can take you the opportunity to be among the richest people in the country only with discipline, study and correct investments.
Let the neighbor’s grass shine more, your water, the internet, electricity, health plan, condominium, health plan, and supermarket will be paid with these $ 4000.00 (hopefully) and your neighbor will wake up every day at 5:00 a.m. Morning to go and earn his daily bread.
Free yourself from the money, understand that this is a matter of personal choice, many people will say it is not, BUT IT IS!
Every day we have hundreds of choices to make and they all have a great influence on your future.
In 3 years of investment, I can already feel it. A big tradeoff in my life is to live in another region of the country, far from my hometown and friends and family, it’s a price that I pay to earn more, work harder and invest, but I’m sure that 5 years from now I will be much better and I can even go back there a lot quieter and with more equity and even earning many interest and monthly dividends.
Life demands sacrifice from those who want to achieve IF. What are the sacrifices you are making?