To all who seek freedom from dependence on a steady job or sell their time for pay, are excited about being able to get rid of all that and start building your financial freedom. Therefore, we must start with the basics that are to spend less than we entered, save all you can to lean to hold our tickets and studying a lot about the subject at hand. Some want to build a new business, others to seek the best returns for their money. If this is your case, I bring you what the analysts of the Elliott Wave International firm, believe are the 5 fatal mistakes that affect our way of investing.

1. Lack of methodology. If you aim to be a successful investor, then you should have a methodology that is clear and concise and allows you to look objectively at the nature of the business where you want to invest.

The guesswork and instincts do not work long term. If you do not have an investment methodology, the lurching walks. This is more relevant when making investments in the stock market if you do not follow a methodology you have no way of knowing that is a sign to buy or sell.

On the other hand cannot even identify the trend consistent. To overcome this fatal mistake, enter your methodology. Define in writing analytical tools and more importantly, how to use them.

What really matters is that you make the effort to define it. If your methodology is too complicated to be written on the back of a business card, it is probably too complicated.

Indeed, the methodology is not something that should remain static and should be perfected over time.

2. The lack of discipline. When you have clearly defined investment methodology, you must have the discipline to follow your system. The lack of discipline in this regard is the second fatal mistake.

Religious discipline should be taken to follow the methodology of trading or investment that you have developed.

3. Unrealistic expectations. How many times you have not met with warnings like: “I spent $ 150 and to date have won 10 thousand” ads like this just make people lose money in droves.

They also help create another fatal error: unrealistic expectations. What many people ignore is that higher risk higher return. Such is the case of higher yields paid by countries with more risk of default.

Put yourself, it is better to win but win little risk for higher yields and left with nothing.

4. The lack of patience. This error is one of the more money we lose. A business where you want to invest East requires patience for the results.

The best advice to combat lack of patience do not have to worry about the lack of opportunities, because there will be tomorrow, next week, next month, that without fail.

5. The lack of money to invest. Managing money according to the risk correctly is the key to not losing money. Limit the risk as much as possible each time we make an investment.

Words, we must invest in our capital. Success is not easy. It’s hard work. If someone leads you to believe otherwise, run in the opposite direction, and fast.

The hard work can give a reward, because you can make a profit above the average.

Following the 5 steps to create Wealth in your life:

1. Accept 100% responsibility for our situation

One of the most common problems in people, is that they believe that the responsibility for your financial situation for others. Whether the government, employer, financial institution, their families … and so on.

If you really want to achieve wealth, accepts full responsibility for your life, and commit to take steps to improve it.

2. Develop a Wealth Mentality

Perhaps this is one of the main goals of this blog. The reprogramming your mind completely, so you begin to conceive of the concepts that will serve to create wealth, and discard what does not.

The problem however, is that people do not take seriously the creation of a culture of wealth. Just think to change your thinking about money will result.

3. Defer Bonuses

On the other hand, people who are in great abundance in their lives, usually know for certain what they invest and spend their money. They know how much goes in and going out each month and have great control.

And interestingly, those who have money problems or even care about these issues. They are very busy with things “more important” to think about these details. And certainly that is what constitutes a financial abyss for them.

Deferring gratification is not to reward all the time without reason, buying things for pleasure or personal satisfaction, but have enough self-control to do so moderately only when truly deserve it.

4. Designing a Strategy for Creating Wealth
This fourth step is another very important in principle must develop a strategy that allows you to achieve abundance. How to get to your destination if you do not know which path to take anyway?.

If you do not know how to create wealth, and if you have a clear strategy based on your skills, strengths, passions, geography, society around you … etc, hardly you will get rich.

5. Maximize your ability to produce

The key is productivity. When you take into account the above steps and you’re on your way to wealth creation, how to make you rich, you will maximize your income (because your expenses were minimized in step 3.).

Maximize your income will depend specifically on your business, your item and yourself, but find ways to produce more, or to generate more value is ultimately what will make you rich and will give you more abundantly.

In many cases is to produce more, or find other alternative distribution channels. Either way, the application of the latter and all the steps above will take you to financial freedom.

Certainly if you take action to achieve your goals. Make it your goal, then, to reach financial freedom. Do not leave it for later … may be too late.

The term refers to independent economic status where one can enjoy a lifestyle with the actions we have. The key is not having much money, but enough to make decisions that allow you to enjoy life without financial worries. The article explains three different approaches that could help you meet your financial goals:

First Way: Extreme Frugality

Many people find financial freedom by reducing costs with a lifestyle a little different. We hope to earn more money to pay for our tastes and to have things growing larger, modern and expensive. The frugal person does the opposite, the financial independence is achieved by living a lifestyle that requires minimal expense. This does not mean that the “frugal” stop spending, but when I do always looking for ways to strike a balance between price and happiness gained from the expenditure.

By living a life with little expense, they can save a lot of money that allows them to achieve financial independence in the short term. A frugal person usually has no debt, no interest in the latest fashion, and knows how to enjoy the free stuff of life. (more…)

A large part of the articles I write mention how important it is to have a budget for a financial life. There is talk of saving a life with manageable debt and have the exact amount you can spend (or you have to make) to achieve your financial goals. A client asked me:  “But I need a quote?” In addition, I replied with the following reasons. Then I asked colleagues about why the great need for a budget and they gave me other reason they are here too, do not forget to leave yours in the comments:

The budget helps you save.

If you do not know how much you spend, and how much you have left to your financial goals, it is very difficult to get money other than our income for saving. A budget will help to allocate an exact amount that you subtract from your paycheck and transferred to your saving account without having to first find out “how you left over.” L key to financial freedom is to pay yourself first. (more…)

This week I was reading this article one of the personal finance blogs I read, where the author explained what he meant, and now means to have financial freedom. David Ning writes in the article “Financial Independence Is More than Just a Number” their ideas about the difference between having a fixed amount of your financial goals and reaches the mental / emotional one that takes you to have financial freedom. This made me think about what I think financial freedom is.

What is financial independence?

As the article explains freedom and financial independence is a concept that changes his mind according to the opinion of the person. For many it is to have high wealth, for others you need to power to his family a comfortable life. Therefore, I invite you to define yourself / to mean to you financially independent. Here is mine:

Financial independence, in my opinion, is to have all needs and tastes of the person without worrying that will happen tomorrow. If I have the ability to have enough money to achieve my personal goals and even more earning capacity when you need me consider financially privileged. Financial independence is to work in a profession that you like, and that monetary compensation for the work performed is not a priority. (more…)