Today, our article covers the link between financial freedom and passive income – as well as why they are vital to your investment portfolio.
One of the primary reasons that people invest is to achieve financial freedom. Financial freedom is essentially the autonomy that stems from financial stability. It can mean quitting that job you hate, not being a slave to the 9-to-5, being able to afford the things in life that you need to feel successful or happy, and so much more. To state it bluntly, passive income is something that leads to financial freedom. It is the major ingredient for investment success. Keep reading below to find out why passive income is essential to financial freedom.
Reason #1 – The Depreciation of the U.S Dollar
As you are surely aware, inflation is real and happens every day. It has throughout the dawn of currency. The U.S. dollar has ups and downs and its value does not remain constant. Odds are, your purchasing power with a dollar will be worth less in 10 years than it is today. As a result, just saving your money and sticking it in a savings account likely won’t be enough to achieve financial freedom. While you’re busy working for more money, the money that you do have stored away is likely losing value – meaning that working towards financial freedom without passive income is a vicious and endless cycle. It becomes impossible to move forward – you become less and less free in your quest for financial freedom as you are locked in a relentless struggle with time and never free to pursue what you actually want to do.
Reason #2 – Preparing for Unseen Circumstances by Continually Earning Money
Life is full of unexpected circumstances. Your car breaks down, your house needs repairs, the cost of living rises, or God forbid you become ill and can’t work your regular job or need additional income to help with expenses once you have retired. Passive income means that you don’t have to traditionally work to earn money. Your money grows on its own and continues to earn more money. This means your bank account gets fuller while you empty it rather than dwindling to nothing. It also means all your eggs aren’t in one basket – you’re not relying exclusively on a job that you can get laid off from or have the potential to not be able to perform.
Reason #3 – Your Money Needs to Work For You
If you’re slaving away for your financial freedom, are you actually free? Not really. The whole point of financial freedom is the alleviation of stress and pressures – the freedom to do what you want to do and the ability to make money without sacrificing your time and happiness. Therefore, financial freedom begins with the ability to earn passive income. That is where investing comes in.
Investing for each individual is different and from years of experience we know that one type of investing isn’t a fit for everyone. People have different personalities that need to be accounted for, different resources, different goals and surrounding timeframes, and of course different definitions of financial freedom. That is why FFR Trading was created – because there isn’t one magic investment path that works for everyone. Here at FFR Trading we created a support system for investors and traders. Our client care specialists get to know potential investors – uncovering their needs and requirements. From there we try to help guide them towards a trader or strategy that works the best with them.
If you would like to learn more about what we have to offer, you can always learn more about our strategist by clicking here, learn about our strategies for options, forex, index futures, and commodities, or get a more personalized approach by speaking directly with one of our team members by giving us a call at (800) 883-0524 or contact us via email or our contact form.