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How to Get Rich Investing Smartly: Financial Independence

Financial Independence means having enough investments with steady monthly financial outputs that cover all your monthly expenses at a minimum. This would mean that you will not have to work another day to earn money for affording your lifestyle and instead you can focus on things which are important to you like family and passions.

Doesn’t it sound like a dream come true or maybe even too good to be true? Believe me or not there are many people on this very same planet who have achieved financial independence and are enjoying life without the stress and hassles of working to earn money.

how to get rich investing in real estate

At the end of this blog I have shared an experience of the journey towards financial independence and has shared very openly and given some really solid and honest advice, so please read till the very end.

Now let’s have a deeper look at this fantastic idea.

What Does it Really Mean?


If you own a business that is earning great money and is allowing you to afford your lifestyle, does it mean you have achieved financial independence? 

Depends, if you also need to manage and supervise your team/employees this means you are working and are not financially independent, you still need to work to earn. Financial independence essentially means you do not have to work to afford your lifestyle. 

On the other hand, if you own a share in the business as a sleeping partner, and it’s giving you a handsome amount of money to meet up your monthly expenses then you are financially independent.

A sleeping partner means someone who has made a share of financial investment but will not be working to run the business. Let’s say you made an investment in a coffee house but you will not have to supervise the business and still, it is making you able to afford your lifestyle it means you have achieved financial independence.

How to Grow Rich?


For accumulating any amount of wealth you need to have a plan. Planning is very important, but your plan should be very realistic and customized. This means you need to design a road map to financial independence based on your own statistics of income and expense of living. 

Once you have a plan, it is very important to stick to your plan because gaining financial independence is all about the mindset.

Gaining financial independence is no rocket science; you design a customized plan for saving money and then investing that money in something that will generate you a steady passive income. Keep growing your saving and passive income until you are able to pay all your living expenses from your passive income without withdrawing from the principal amount.

If it really is that simple, why don’t you see more people gaining financial income? It’s because as simple and desirable the idea is, most people do not have the right mindset for it. They do not have the patience required for growing slow and steady, or they are not willing to take the risks which are involved in businesses. 

Some find it hard to trust others enough to invest their hard-earned money into someone else’s idea. There are people who just are unable to make any savings at all because they are bad at budgeting and money handling. If you have any such issues, you need to work on them first.

How to Become Financially Independent

There are two ways of achieving financial independence. One is to grow your passive income to help you pay for all your monthly expenses. Other is to cut on your living expense and downsizing your lifestyle to fit into your small passive income. 

Either way, you still need a passive source of income which is steady and helps you pay all your monthly expenses every month!

How to Save Money

To make an investment, you first need to have savings that you can invest. If you already have some savings to get you started, great for you but how to save money while you already making barely enough each month? Well, obviously you need to cut down expenses and be very careful about where you are spending money.

how to save money each month from salary

You need to carefully analyze the goal you have set for yourself and when do you want to achieve it. Divide the total amount of money you need to save on the total months you have till your deadlines, you will know how much you need to save each month. Once you know that craft a saving plan and see where in your monthly expenses you can save. 

Here are some helpful tips for saving money:
  1. Look for cheaper options whenever you can this includes everything from renting living space to shopping
  2. Spend only on essentials
  3. If your income grows do not upsize your lifestyle or you will not be able to save
  4. You can also take up a part-time job and make the extra income count as saving.

Where to Invest Your Money for Passive Income?

Once you have gathered up some savings and think you have enough to invest somewhere, it’s time to decide where? Where would you like to invest the money you have worked so hard to save? Do your research, the more research you do the better idea you have of the market. My advice is you do not need to and should not wait for saving heaps of money.

Start small. Try to make several small investments because you do not want to put all your eggs in one basket. When you are sure about the outcome of each investment you can invest more in the business which is yielding you better profit. 

Remember it’s the money you have worked hard for so do not make hasty decisions and avoid impulsive investments. As an experienced financial expert I have engaged in different investments and came into conclusion of three investments that can generate you profit for financial independence:
  • Real Estate
  • Stock market
  • Cryptocurrency.

Having a diversified investment has helped me create a source of passive income. But from the above investments I found “cryptocurrency” more interesting and attractive because you can start with a little capital and still earn big on like Real Estate & Stock market.

how to get rich investing in cryptocurrency

Cryptocurrency investing has been one of the big news stories of 2021. Although the first Crypto(Bitcoin) was mined way back in 2009, it wasn’t until Bitcoin millionaires began being minted that crypto started grabbing the public’s attention. 

Now, new coins have flooded the market, and more millionaires have been created, as some coins have rallied 1,000%, 2,000% or even more. In the midst of all of these incredible gains, the natural question is whether or not it’s too late to invest in cryptocurrency.

It's Not Too Late: Just a few years ago, crypto was perceived as quite a sketchy investment. Over time however, its status has changed drastically and now it seems everyone wants to get involved. Are you also wondering whether you should invest too or whether it may be too late already? 

Let’s take a look at some facts and figures, as well as some of the advantages and use cases of crypto to help you decide.

The year 2021 has been like a rollercoaster so far. The markets started off with a bang, with Redditors gathering and shaking up Wall Street by Trading Gamestop Stocks

Then, Bitcoin started spinning the charts up and down, Ethereum surprised pretty much everyone with its price hikes, altcoins started booming like never before (just think about DOGE), new market actors even rushed in to join the race... let’s just say that it’s been an exciting year so far.

After all this, if you are still on the fence about getting in because you are worried that it’s too late to get started, come and find out whether cryptocurrencies might just be a valid investment for your future.

Let’s talk about Bitcoin

If you look at the price of Bitcoin right now, you may think that you no longer stand a chance of making a real profit. But is it really too late to start investing? We doubt it.

In 2008, Bitcoin was trading for less than a fraction of a cent. Now, Bitcoin’s price is mostly hovering around €40,000. Sure, whoever invested back in the days and managed to not lose their wallet password likely made some great returns. However, this doesn’t mean that you’re late to the game if you’re about to invest in Bitcoin for the first time.

Looking back and ahead

Bitcoin’s journey hasn’t been a straight line. Looking back, we can see that some years have been fantastic, while some have been absolutely terrible: at the end of 2017, for example, the price peaked at almost €20,000, and the year after it fell from €13,800 to €3,300 within just one week to bring in the crypto winter.

Those who mastered the virtue of patience back in 2018 have certainly been rewarded by this year’s events. Bitcoin is now legal tender in El Salvador, Ukraine legalised Bitcoin, more and more companies are investing in Bitcoin and, despite its recent setbacks, its value grew by 350% in the past year.

So yes, it would be nice to go back in time and invest in Bitcoin and other cryptos but we can’t. On the other hand, no one can predict the future, either. Who knows, maybe in 10 years’ time people will be wishing they could go back to 2021 to start investing in cryptocurrencies.

Conclusion

To me, reaching financial independence is living a life that is not conditioned by my ability to go to a job I hate simply to make a living.

It means I can enjoy life and practice what I love while still able to live comfortably through passive income.