The purpose of the Blue Eden Project is to integrate all the great ideas from the world, and help all people in the world to achieve a healthy, financially worry-free, wise and happy life.
Financial freedom is a popular topic, and many famous people have discussed about financial freedom.
You probably read many articles, books, and watch many videos about how to achieve financial freedom, but they are far away from you, either they are too difficult or just hype.
Here we only introduce the easiest way to achieve financial freedom. Everybody can follow our recommendations to achieve financial freedom earlier than the retirement age.
We will discuss 6 topics:
1.What is the money required for financial freedom?
2.The value chain of wealth.
3.How to build a career?
4.How to make a budget?
5.How to make investment?
6.The realistic paths to financial freedom.
The first topic.
How much is required for financial freedom? There are only 2 important factors: firstly your annual spending, secondly the inflation rate.
Here is a formula for your convenience: Annual spending / (investment return - inflation rate). Assume you invest all the money in a very safe fixed income investment vehicle, there will be no risks for your money. The best return you can get will be a little bit more than the inflation rate. Assume the investment return minus inflation rate is 1%, which is pretty good, then the money required for financial freedom is 100 times your annual spending.
At the beginning of each year, you can recalculate the result by using the same formula. If you have more money, you are still in financial freedom.
The best website to know the cost of living for any place in the world is “Numbeo.com”. You need to close the gap between your spending and the benchmark.
The second topic.
To achieve financial freedom, you need to understand the value chain of wealth, which is a new term that you only hear from our project.
The value chain of wealth is a series of consecutive steps that can help you build wealth, achieve Financial Independence and Retire Early.
We believe the value chain of wealth is starting from education, then career development, and after that, the personal finance including retirement planning.
Education and career have big impacts on how much you can earn. Personal finance is critical to build your wealth.
In fact, only 20% of your wealth is coming from salary, while 80% of your wealth should come from long-term investment.
You need both to speed up the journey to financial freedom.
The third topic.
You need to find a job and earn money for a living, this is very straight forward.
There are some basic career skills, like job search, resume, cover letter, interview skills, that you must be very experienced with.
Unlike education, which is primarily focusing on academic knowledge and hard skills, career development requires equivalent of soft skills, like communication, leadership, critical thinking, and decision making, etc.
There are two important factors you need to think about your career: interests and rewards.
You have to work for a long time, why not find a job which you are interested in and gives you good rewards?
Don’t worry, even if you don’t have a high salary, you can still achieve financial freedom.
The fourth topic.
A good budget is the pre-requisite for achieving financial freedom.
If you want to succeed, you have to save enough money for investment.
How much you can save depends on your income and spending. There are always ways to save money for investment.
If you don’t have enough income, the best place for saving is housing, food, and transportation. There are many social benefits and programs, like the food banks, where you can get necessities for free. Then you can save some money for investment.
The fifth topic.
Investment is the key to financial freedom.
You may have a good education, a good career, and a good budget. However, if you don’t know how to make wise investment, financial freedom is still far away from you.
There are only 2 investment vehicles for regular people, stocks and real estate.
Business is very hard, you can easily lose your savings.
Real estate is not cheap and requires lots of initial capital. You’d best invest in the real estate market during a crash.
The stock market is the only easy way for accumulating wealth.
The sixth topic.
There are 2 different paths that can help everybody achieve financial freedom by investing in the stock market.
The first path is usually for younger people, like in the age of 20s or 30s.
The best way to invest in the stock market is to invest in the S&P 500 index, which is the best in the world. This strategy has been proven to be effective for everyone who has tried it. You don’t need to reinvent the wheel.
Investing in an Exchange Traded Fund tracking that index, like SPY, could be the best way for ordinary person to invest over a long period of time.
For this strategy to work, you need to invest a fixed amount, for example 500 dollars, from your paycheque into SPY at least once per month.
You need to automatically reinvest all the dividends received from SPY. And you need to invest for at least 30 years.
It is best that you can invest in a tax-free special account, like Roth Individual Retirement Account for the U.S. or Tax Free Savings Account for Canada.
Then, when you withdraw the money, it’s totally tax-free, and doesn’t affect your social benefits.
You need your full social benefits to achieve financial freedom. The maximum benefits in Canada or the US is about 2000 dollars per month in 2024, which is significant.
For older people, like in the age of 40s or 50s, there is probably not enough time for index investing. So you have to go the second path.
That is to invest in the best opportunity in the stock market for each year, and try to obtain at least 50% return every year.
At the age of 40s or 50s, you can easily save 20000 dollars to implement this strategy. For the other savings, you can invest in a balanced fund, or simply invest in long-term bonds.
Never use bond ETFs, those can lose big value due to the market, where the underlying bonds are still paying the interests. This is probably the worst investment vehicle you can think of.
Let’s assume you have 20000 dollars to invest, and you can achieve 50% return each year, in 10 years, your retirement fund will become more than 1 million dollars. This is the power of compound return.
But how to achieve 50% return each year? You need to find professionals who can provide wise and reliable investment ideas.
50% is very easy to achieve. Warren Buffett once said that if he could just manage small fund, he could easily get that return each year. However, his company and fund is too big, even achieving a return similar to S&P 500 will be very difficult.
If you can’t find reliable professionals for investment ideas, the Blue Eden Project can share the best investment ideas and help you achieve 50% return each year.
However, you need to understand that successful investment strategies should be kept secret because when more people understand and use that strategy, gradually, it will not be as effective as before.
The same applies to timely trading opportunities. Those can only be effective within the time period, and shared within a small group. If more people understand those opportunities, it will not be effective.
So, we can only help limited people, who can become our Youtube channel members earlier.
For other people, you may watch our Youtube videos in the public channel about stock investment. The big hint is: you need to find the leading stock with good fundamentals in the hot industry, with a technical breakout with big volume.
Good luck to your journey to financial freedom!
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