Financial Independence
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 reach 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,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.
Liu Xiaobo: Nobel Peace Prize 2010
The lack of freedom of expression and in general all kinds of freedom in a country like China, leads to people trying to defend their ideas and thoughts end up in jail as the case of Chinese Liu Xiaobo.
Liu Xiaobo was born in Jilin in 1955 that was dedicated to be the center’s president called independent Chinese PEN, intellectual, a philosophy professor and writer and has been imprisoned in a prison in China a couple of years for attempting to defend and promulgate the advancement of civil and political rights in this country.
The reason that in December 2008 was arrested Liu Xiaobo has Charter 08, signed a letter that he and promulgated, which was referred and urged Chinese authorities to undertake political reforms and humanitarian.
NOBEL CHINA
Precisely because of its efforts to combat the communist regime in China, Liu Xiaobo has been awarded the 8th of October with the Nobel peace prize but a prize will not be collected because it has to be in prison for eleven years. Continue reading
How to Achieve Financial Freedom? -part 2-
The second step is to generate savings from this income and how to achieve these savings is to live below their means.
This is perhaps the most difficult part of the process. Do not spend everything that comes in to lead a frugal life. How many times has gone from an increase or extra income and say “I worked hard to get, I deserve an award.” Continue reading
How to Achieve Financial Freedom? -part 1-
The process that leads to financial freedom is neither short nor easy, but worth it. Where do I begin …?
Today everyone’s dream is to become rich. We live in a consumerist world which makes us work harder to gain more time and spend that money on unnecessary frills.
When you ask people what their purpose or what you want for your life, a large percentage going to say, be rich.
But there is a concept more important than being rich and financial freedom. But what is financial freedom? Financial freedom is to generate passive income greater than our expenses. Continue reading
Online Finance -part 2-
The American online brokers should follow a business model more like that of Charles Schwab in the last quarter saw how only 43% of total sales came from stock trading commissions.
22% of its revenue came from the sale of mutual funds, investors often have much longer periods of time that the shares and are therefore less subject to cyclical swing of the bags. Continue reading
Online Finance -part 1-
The rigid world of finance in Latin America seems to crumble with the emergence in the region of the online brokers. At the moment there are four in Brazil, two in Argentina, and two in Chile.
In addition, several financial sites that try to take advantage of emerging e-commerce opportunities to sell services through the Internet.
It is clear that the phenomenon, at least for now, is alien to much of the population, Internet penetration is currently only 1.4%. And throughout the region there are only 7 million users, a figure projected to grow to 34 million in 2002 (which may have to add about 14 million internet users in the U.S. Hispanic and 4 million users in Spain). Continue reading
Financial Speculation and Its Implication -part 4-
Another important factor for the formation of the bubble was an excess of appropriations. This was what actually occurred in the late 80s. Between 1987 and 1989 the amount of money in circulation experienced an average increase of 10.8% annually and exceeded the growth of gross national product (GNP) rated an average of 4.5 points.
Excessive growth of liquidity used for asset transactions or in other words, to inflate the speculative bubble. Between 1985 and 1990 financial deregulation that accompanied the total monetary issue which grew an average of 10% voids resulted from the second half of 1988, excessive speculative boom that led to the purchase of land, stocks, paintings and articles of luxury. [3] Continue reading
Financial Speculation and Its Implication -part 3-
A very significant negative impact that has had the world’s economic history is the financial crisis of 1929-1933. This crisis starkly reflected the deep contradictions of the capitalist system. The failure of the U.S. economy was so alarming.
In the four years of the 5761 banking crisis broke. Exports declined significantly from 5157 million in 1929 to only 1647 million in 1933. The crisis manifested itself in industry, agriculture, commerce, banking, since all sectors were affected.
The crisis spread worldwide and as the country’s economic fundamentals were sound, the Wall Street crash occurred in the United States a period of economic stagnation known as the Great Depression. The first effect of the crash was the failure of numerous banks consequently resulting in a weak financial system. Continue reading
Financial Speculation and Its Implication -part 2-
We must also bear in mind that the stock exchanges, economic thermometers are true: if the economy is doing well, the prices go up, when it goes wrong or a company has problems, the values fall, as their owners want to sell all costs before fall more.
In recent years, financial systems have been undergoing momentous changes and institutional innovations have appeared in the money and capital markets have a decisive influence in its operation. Untying the international monetary system on gold, the development of unregulated offshore markets credit and securities, derivatives trading, etc., have greatly increased the liquidity of financial markets, forcing central banks to change their strategies to achieve the objectives of monetary policy and even changing the scale of priorities of these goals [1]. Continue reading
Financial Speculation and Its Implication -part 1-
The financial market is characterized by four key elements that characterize it:
1 – Universality
2 – Stay
3 – Immaterialisation
4 – Immediacy
With the development of technologies in the field of telecommunications, today all major stock markets are interconnected, affecting all of them quickly in any variation that occurs in one of its members. Continue reading