Financial Independence - 3 Expert Tips You Shouldn't Miss
Financial independence is reached when a person has accumulated enough assets to meet all their and their family’s needs without having to work for money. Achieving financial independence at the age of 40 is the goal for many young people today. To achieve financial independence by the age of 40, a serious plan and efforts are required. Here are 3 basic tips that every investor should know:
1️⃣ Improve your financial knowledge - on both the investment knowledge and the psychology of investing aspect.
There are many ways to improve your financial knowledge, such as reading financial books, following economic news and market trends, consulting professional financial advisors, and learning from the experience of other investors. To cultivate a strong psychology for investing, participating in the market and experiencing real situations will help investors accumulate experience, and confidence in mastering their mindset in the face of market changes.
2️⃣ Understand investment products – Choosing a suitable investment style.
Are you investing on your own or entrusting it to a professional asset manager? If you are busy but still want your money to grow, consider entrusting your investment to the products of an asset management company. When entrusting investment, you can choose between products that are actively managed or passively managed. Active management is when the fund/portfolio manager actively selects a stock portfolio with the goal of outperforming the market. Meanwhile, passive investment are funds or portfolios that follow a market index, accepting the risk and return of the overall market.
3️⃣ Plan and start investing early - Overcome the initial psychological barrier to start investing early.
Investing is a challenge, and getting started can be the biggest obstacle. The earlier you invest, the more experience you will accumulate to quickly mature in your investment journey. If you start practicing investing at the age of 20, building a solid and independent financial foundation at the age of 40 is not a distant dream, as you have gained 20 years of invaluable "real battle" experience.
Achieving financial freedom at the age of 40 is challenging but entirely achievable if you have a serious plan and effort.
1️⃣ Improve your financial knowledge - on both the investment knowledge and the psychology of investing aspect.
There are many ways to improve your financial knowledge, such as reading financial books, following economic news and market trends, consulting professional financial advisors, and learning from the experience of other investors. To cultivate a strong psychology for investing, participating in the market and experiencing real situations will help investors accumulate experience, and confidence in mastering their mindset in the face of market changes.
2️⃣ Understand investment products – Choosing a suitable investment style.
Are you investing on your own or entrusting it to a professional asset manager? If you are busy but still want your money to grow, consider entrusting your investment to the products of an asset management company. When entrusting investment, you can choose between products that are actively managed or passively managed. Active management is when the fund/portfolio manager actively selects a stock portfolio with the goal of outperforming the market. Meanwhile, passive investment are funds or portfolios that follow a market index, accepting the risk and return of the overall market.
3️⃣ Plan and start investing early - Overcome the initial psychological barrier to start investing early.
Investing is a challenge, and getting started can be the biggest obstacle. The earlier you invest, the more experience you will accumulate to quickly mature in your investment journey. If you start practicing investing at the age of 20, building a solid and independent financial foundation at the age of 40 is not a distant dream, as you have gained 20 years of invaluable "real battle" experience.
Achieving financial freedom at the age of 40 is challenging but entirely achievable if you have a serious plan and effort.
Explore SSIAM’s leading investment fund products and start investing today: Here
Admin
Published:
17/09/2023
Suggested reading
Find out more about our investment products
