Overview
- Definition
- The 4 steps towards Financial Freedom
- 1 Create an emergency fund
- 2 Pay off your debt
- 3 Create a runway
- 4 Start a retirement fund
- Investing in ETFs
- Dos and Dontâs on your way to Financial Freedom
- Diversify your investments
- Make a savings plan and utilize the cost average effect
- Keep your hands of closed-end funds
- Start your own business
- Avoid buying unnecessary stuff
Definition
Financial independence: âyou should never have to do things that you don't enjoy just for the sake of money.â â Bodo SchĂ€fer
âThere are many things money can buy, but the most valuable of all is Freedom. Freedom to do what you want and to work for whom you respect.â â JL Collins
âWe all dream of achieving that [âŠ] independence, that freedom. In short, we all dream of being unshakeableâ â Tony Robins
âFinancial Freedom means our money is working for us rather than the other way around.â â Todd Christensen
Source of content: SchÀfer, B. (2018): Der Weg zur finanziellen Freiheit: Ihre erste Million in 7 Jahren; JL Collins (2016): The Simple Path to Wealth; Robbins, T. (2017): Unshakeable: Your Financial Freedom Playbook; https://www.moneyfit.org/financial-freedom-means/
The 4 steps towards Financial Freedom
1 Create an emergency fund
2 Pay off your debt
3 Create a runway
4 Start a retirement fund
Source of content: https://www.youtube.com/watch?v=ATDYLTnGJV0; Bodo SchÀfer (2000): Der Weg zur finanziellen Freiheit; JL Collins (2016): The Simple Path to Wealth
Investing in ETFs
Source of content: Morrien, R., Engst, J. (2019): Wie lege ich 50 000 Euro optimal an? Alle wichtigen Bausteine zum sicheren und einfachen Vermögensaufbau; Domash, H. (2011): Exchange-Traded Fund (ETF) Investing: What You Need to Know
Source of content: https://humbledollar.com/2020/07/almost-zero/?utm_source=mailpoet&utm_medium=email&utm_campaign=another-ses-test_7
Dos and Dontâs on your way to Financial Freedom
Diversify your investments
Source of content: Morrien, R., Engst, J. (2018): Wie lege ich 10 000 ⏠optimal an? Alle wichtigen Bausteine zum sicheren und einfachen Vermögensaufbau
Make a savings plan and utilize the cost average effect
Source of content: Engst, J. & Morrien, R. (2017): Wie lege ich 5000 Euro optimal an?
Keep your hands of closed-end funds
Source of content: Engst, J. & Morrien, R. (2017): Wie lege ich 5000 Euro optimal an?
Start your own business
Source of content: https://www.youtube.com/watch?v=5oNcoj4G0xc; Rainer Zitelmann (2015): Reich werden und bleiben, Ihr Wegweiser zur finanziellen Freiheit
Avoid buying unnecessary stuff
Source of content: Robin V, & Dominguez J. 2018 Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence.