Financial Freedom 1.2.3

Its always know that to be financial free and rich, we have to have lots and lots of money that work harder then we work for them.

People have to go through the phrase of saving, insurance and investing. through proper planning and allocation of income & expenses. we all should be living happily if we are contented and living within our means. But that's not the case as always, thus we take up 2 job, upgrade our self for better career advancement and such.

On the other hand, there are a group that are contented with what they have and seek not to do any of the mention above.

There are always obstacles in the 3 areas mention above.

1. Accumulating through saving.
I spend as much as I earn. I don earn enough to save. The amount I save is not going to make a impact in my life in the future. ( Mindset tuning )

2.Insurance
It's a long term commitment. I don need it now. Its too expensive for me. ( Getting a insurance agent that's is experience, trustworthy and you enjoy working with to plan )

3.Investment.
Current, i feel this is the area that need more awareness. Many people start investing for the wrong reason or do it the wrong way. resulting in lost of hard earn saving.

Others have the mindset that investment is for the rich and its too risking for me.

I seek to provide a 2nd opinion that some investment is a must and necessary in long term financial planning. Primary reason is its historically it outpace inflation 
thus preventing our wealth from shrinking. Its allows us to receive passive income through dividends payout and such.

But what to buy, when is right & how much do i need to start is always the first few asked questions.

But before starting, its important we know the difference of Investing as to Trading as to Gambling.

Take of example, if i don know what I'm buying. only through hear-say and hoping. That's gambling. ( Lack of knowledge and understanding always leads to disaster )

Trading is for the short term. normally a few months to less then a year.

Investment is for the long term. with 1 year being short and 3-5 years being medium and so on and so forth.

But where do gambling come it? whats the link? the link is the emotion part. what do you feel? excited when your stock make money? panic when your stock drop 20%? When investing & trading is involved, we have to hear the 'music' through all the 'noise'

We got to understand & believe what we are doing and stick to it. Which refers to your homework done on fundamental analysis and technical analysis. Its takes lots of hardwork and practise unlike gambling which is a game 
of chance and luck.

If you are doing investing with a lot of emotion involved, getting a kick out of it. It would be good for you to learn how to manage your emotion before venturing into investment.

As I'm too is starting to move into part 3 of the financial freedom stool. The upcoming future post will be more technical.

There is 2 time when we should not gamble. 1 is when we don have the money, 2 is when we have the money.