Wealthy: How to Attain Financial Freedom, Good Relationships and Internal Happiness

Earth seen as a golden globe in space, with all countries and cities illuminated in a golden light. The viewpoint is above Europe, the top of Africa and the western parts of Asia.


Attaining financial freedom, good relationships and internal happiness.

You are rich when you can buy what you want,
you are wealthy when you are free to enjoy what you love.

Values, Purpose and Meaning


Economics, Business, Entrepreneurship and Marketing

Economics


Business


Entrepreneurship

“Build your own dreams,
or someone else will hire you to realize theirs.”

In the ever-evolving landscape of professional pursuits, a critical question arises: are you investing your talents in realizing your own aspirations, or those of others? While contributing to a shared vision can be rewarding, there’s a distinct power in pursuing your own unique goals. This guide serves as a catalyst for that very purpose. It will provide you with the tools and strategies necessary to translate your entrepreneurial dreams into tangible realities. By fostering your inherent creativity and equipping you with practical knowledge, this resource will empower you to build a career centered around your passions and aspirations. The time to chase your own dreams is now.


Marketing


Building Passive Income

Tired of trading your time for money? Do you dream of financial security and the freedom to pursue your passions? Building passive income streams can be your key to unlocking that dream. This guide will equip you with the knowledge and strategies to generate income that works for you, even while you sleep. We will explore a variety of options, from investing in dividend-paying stocks to creating digital products, all designed to help you achieve financial independence and live life on your own terms. Drop the 9-to-5 grind, prepare and plan to build a future fueled by passive income.

You want to get to a point where you have enough investments that are yielding capital or growing such that your passive income is greater than your cost level (your burn).

For instance owning a dozen washing machines that you can collect quarters from in trailer parks or similar. You can make about 50,000 USD a year without really working. If your burn is, say, 45,000 USD a year then it can cover all your expenses and you are good.

If you think you are going to need 120,000 USD, then you need to save 1,090,909 USD given a yearly return of about 11% on that. Based on this, you can calculate how many years you have to work to get there (to the 1,09 million USD), given your yearly current income, and applicable taxation rules in your country.

You can e.g. assume the market will go up 11% a year, and calculate roughly how much you should be saving and putting in to low-cost index funds. You want to have your costs covered while not feeling anxious. You want to be able to live well without having obligation to work. If you decide to keep working, it is a choice and that in and of itself is a relief.

You can imagine that there are three buckets in life:

  • Things you have to do (go to that funeral, file tax reports, etc.)
  • Things you should do (a co-workers kid is having a wedding I really should go to, it’s this event/conference and I should go to network with others in my industry)
  • Things I can do (book a holiday to Hawaii, learn Spanish…)

The great thing about having economic security, is that you can stop thinking about the “Should” bucket. You no longer need to do things you should. It is so liberating. You can completely focus on doing the things you have to do, and the things you want to do, and that is easy, very manageable and also motivating.

First Step
Focus on finding something that you are naturally good at. Something that you could become the top 10 or top 1% of an industry, doing, that has a 90%+ employment rate and focus on that.

Side hustles are fine for exploration. If you are not happy with your main job and you can’t give it up because you need the money, you can explore other avenues through side hustles. However, keep in mind that it is exploratory. If your side hustle(s) are going on for too long, it means you got to leave your main job, or make a significant change to it. Research suggest that the incremental 10-20% effort reinvested into your main job, will provide greater return than the distraction caused by an incremental side hustle. Thus, find something you a good at that you could become great at through focus over a long period of time. Your mission should be to find that thing.

Recognize that you can’t control the market, but you can control your spending and saving. Be frugal, and invest your savings into e.g. low-cost index funds to get closer to your goal. Start as early/young as possible, to take more advantage of the compounding effects of your investments.

  • Investing in index funds
    Keep in mind that market dynamics will trump individual performance in nearly all cases. Most of people’s success (and failure) is not peoples fault, but most often a consequence of the market cycle that you are in overall or the market cycle each company you have invested is in. The way you protect against (hedge) that is diversification. You may want to avoid putting more than 3% of your net worth in any one investment, to be resilient in case you make the wrong investment or bet. With proper diversification, such as through an index fund, you don’t need to find the needle in the hay stack, you can buy the whole hay stack.

    The Vanguard First Investment Trust was launched and offered to the public in 1976, and is considered the world’s first publicly available index fund. This fund was later renamed the Vanguard 500 Index Fund as it tracked the Standard and Poor’s 500 Index. The average yearly return of the S&P 500 since 1976 (through the end of 2023) is approximately 11.6%.

    If you consistently invested 3,600 USD annually (300 USD pr month) for the child’s for 30 years with an 11% interest rate and reinvesting the returns, you would have accumulated approximately 7,16 MUSD by the end of the 30 years (e.g. from you start working after university at 25 to 55 year old).

    Learn more about the difference between investing in index funds and ETFs.

  • Investing in dividend stocks (Coming soon)
  • Consider a Yen Carry Trade. Learn more about it here: The Yen Carry Trade: Current & Future State
  • Drop Shipping (Coming soon)
  • Creating Digital Products (Coming soon)
  • Apartment Rental (Coming soon)


Read on to learn more about
How to Ensure Financial Security for Your Children


The Myth About Very Wealthy People

The majority of self-made people are actually good people. Most of them are of high character. The reason why is that if you want to be really wealthy, you need to collect allies along the way. People have to want to put you in a room of opportunities, even when you are not physically in the room. People impression of you need to be so that they are willing to give you the benefit of the doubt. They want to include you in deals. They want to come to work with you. That is only going to happen across an extended period of time, if you show generosity and character from an early age.


How to Give Back to Society

There are many reasons why giving back to society is important, especially after achieving success. Here are a few key perspectives:

Perspective 1: Leaving a Legacy

  • Contributing to a Greater Good
    After reaching your peak, you’ve likely accumulated knowledge, resources, and experience. Using these to benefit others can leave a positive impact beyond your personal achievements.
  • Inspiring Others
    Your act of giving back can inspire others to do the same, creating a ripple effect of positive change.
  • Fulfilling a Purpose
    Contributing to a cause you care about can bring a sense of purpose and fulfillment, enriching your life beyond material success.


Perspective 2: Social Responsibility

  • Sharing the Benefits
    Reaching your peak often involves benefiting from societal resources and infrastructure. Giving back ensures others have the chance to succeed as well.
  • Addressing Challenges
    Society faces complex issues like poverty, education gaps, and environmental concerns. Using your resources to address these challenges benefits everyone.


Perspective 3: Personal Growth

  • New Experiences
    Stepping outside your comfort zone to help others can expose you to new perspectives and experiences, fostering personal growth.
  • Gratitude and Humility
    Giving back reminds you of the importance of community and fosters a sense of gratitude for your own success.
  • Building Connections
    Volunteering or offering mentorship can forge meaningful connections with people from different backgrounds.

Regardless of your motivation, contributing to society allows you to leverage your success for a greater good, creating a lasting positive impact.

Here are some ways you can give back after:

  • Philanthropy: Donating to causes you care about can directly support those in need.
  • Mentorship: Sharing your knowledge and experience with others can empower them to achieve their goals.
  • Volunteer Work: Dedicate your time and skills to organizations working on social issues.
  • Advocacy: Raise awareness about important issues and promote positive change.


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