The biggest misconception that most people chasing financial independence is that it is all about investing. They do everything to save as much money and invest it. Yet 90% of those doing this are not experts in investing. They just put the money in the hands of counterparties to invest for them and hope & pray. Then get back to earning money to put more money in those investments. In this episode we are going to explain the weaknesses in this approach and why it won’t help you unless you know what you are doing.
Remember 2008? Banksters created an illusion that housing prices could keep going up and up because they artificially fueled demand by creating a new customer base of people who got mortgages that previously would never have qualified.
Although many would attest to a debate over active vs passive income, we believe there is no debate - Passive always wins. Let's explain why.
In previous articles, I have stated that the concept of FI (Financial Independence) is flawed. Although the pursuit of it is admirable, the fact is that few FI followers have been able to do this through bear markets. Consequently putting yourself on that path has some dangers. I prefer to concept of "financial sustainability" and this article gives you tangible steps to take to achieve that.