Financial Independence and Investments – Part 2

December 23rd, 2007 | Stacey | Debt Management, Residual Income, Passive Income, Financial Freedom, Financial Independence

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Yesterday we discussed financial independence and investing your money to make a profit. While investing can be speculative, if you plan effectively and get to know the market you are investing in you can make educated investment decisions that yield passive residual income. Gambling on risky investments can make you a lot of money, but you can also lose everything you have. A balance of healthy risk and good potential make a viable investment option.

One you figure how to get out of debt and put a small sum of money aside for investing, you are on your way. Today we will discuss investments in real estate and how they can bring you to the financial independence you want. While real estate can be a risky venture, it is more stable than many other investments and with wise purchases, you will realize an ongoing stream of income and profit from your real estate investment.

Real estate offers a great deal of leverage because you can buy an expensive property and only use 0-20 percent of your own money to get it while you finance the rest. For example, if you put down 10 percent and the value of the real estate increases 20 percent, you just earned a 200 percent return on your original investment. Of course, that can work the opposite way if you make a poor decision. Research the market, discuss options with real estate experts and talk to your accountant or financial advisor if you are a beginner to ensure you are making solid decisions.

Our next blog entry will discuss ways to find a viable real estate investment to ensure ongoing passive residual income for greater financial independence in your future.