Digital Nomads – Cryptocurrencies – Real Estate – Commodities – Startups
Discover the Digital Nomads Lifestyle
The digital nomad lifestyle has become significantly more popular in recent years due to a number of factors. Internet connectivity becoming more widespread, even to rural areas, has helped people travel to more areas (digital nomad or otherwise). Jobs becoming less location-dependent (such as graphic designers and writers) has also contributed to the ease of the digital nomad lifestyle.
What is financial freedom?
Financial freedom is defined as the action of generating money without taking any time or effort to achieve it. It is a patrimony that we manage to create and that by itself generates income, whether fixed or multiplying.
But to reach the previous point, there is a whole path of efforts and achievements that you must acquire.
We divide income into passive and active. The liabilities are the ones that will provide your financial freedom while the assets are generated day by day with your work force. Effort and knowledge are the main characteristics that distinguish them.
First list all the active income you have. In which besides effort and knowledge you invest time: salary and wages or fees, that is, your work as such or a business you have.
If you have a business or SME, it may require your time at the beginning. But in the long run, as it grows and you have more collaborators, it can become a passive income.
Self-employment can be an option to achieve this. Being an entrepreneur allows you to open a giant step towards your financial freedom.
Second, identify what income you get without using your time or a major effort, such as leasing. Owning a property requires previous work, but at a certain point it becomes an extra income that is generated on its own.
Investments also count as liabilities and are the best option. Many people are afraid to invest but in the long run the benefits are good, the goal is that this income grows in value and eventually multiplies.
In addition to your income, expenses are important, just because you have more income does not mean that your expenses are more or higher. We can divide them into 3 categories, but in addition to them there are expenses that we acquire such as credits or financing for a car, house or business and that are temporary.
These are those such as basic services, water, electricity, gas, etc. You can save on these and it will not affect your daily life; on the contrary, your income will yield more. We can say that they are all those services and products that we use to cover the basic needs of a human being.
Those emergencies that you may have, it is good to have a savings and to think that these situations may happen. Some examples can be illnesses, natural disasters or unforeseen situations. It is not because they are less likely to happen that you should let them go unnoticed. Allocate part of your income to these types of events.
They are all those that satisfy your ego or you may not be aware of the purchase. It is very important to evaluate this point because if you fall into the trap, both your active and passive income may decline. Become more conscious when purchasing something, ask yourself questions such as: will it really benefit me, can I use it more than once, evaluate the purchase before making it.
One feeling you will experience when you have financial freedom will be the peace of mind and security to enjoy your life. And you will be able to achieve it once your efforts have been the right ones so that you can generate an income that no longer requires them.
Your financial knowledge must be adequate to achieve control of what you spend, invest and earn. Today there are some tools that allow you to capture information about your personal finances or for your SME or business.