The American Dream

NeoSoulBrotha wrote:

Yes, provided that the job is seen as a means to an end, and not the end itself. In order to achieve financial freedom, you must have the following: 1. Responsible spending habits. 2. A job or other type of income that allows you to earn more than your marginal propensity to spend (business majors you know what I am referring to). In other words, you are earning more than your living expenses. 3. An investment portfolio that allows room for growth. The trend nowadays is to diversify in order to limit risk, but few people understand the concept behind it. "Diversification" means using several different types of investment to generate income. Most people ASSUME that this means invest in mutual funds or other "balanced" investments that ultimately spreads their funds too thin to see a significant return. An ideal portfolio would include: 1. Real Estate - high ROI, retains most of its value. 2. Business Ventures / Venture Capital - can be risky, but very profitable. Especially if the business creates residual income. 3. Stock / Equity - No fad investing (penny stocks, day trading, "hot stock tips" etc.) Go with "blue chips" - large firms that will be around for a long time and provide sustained growth resistant to market trends. IE. Walmart, Intel, Disney, etc. 4. Safe Bets - Investments that don't provide big gains, but slow, steady growth. Examples would be mutual funds and bonds. This way, if your other investments fall through, you won't lose your shirt. Most of us are young, and can afford to take risk. Most people investing today avoid it, because they can't afford to lose. If you don't take risk, you will not generate return. Period. I'm working a job right now. My objective is not necessarily to get promoted up within the firm, but to meet my immediate needs as a student and be able to put aside funds to purchase some real estate once i graduate. Ownership is the only freedom. Holla!