It is essential to control spending if you intend to save more and accumulate wealth. Lifestyle inflation is the enemy of a good savings plan and detrimental to any plans for attaining Financial Independence. A simple definition of lifestyle inflation is when a person expands their expenses to match increases in income. I will use myself as an example of how lifestyle inflation was one of my biggest financial mistakes. Continue reading
At the core of my plan for gaining Financial Independence will be an investment portfolio consisting of low cost passively managed index funds. Index funds basically aim to track the performance of the stock market. They are not actively managed funds which aim to beat the market and can be very costly.
This is one of my favourite quotes of all time. Gaining Financial Independence requires a source of passive income to cover your basic expenses. Passive income can be achieved through a variety of activities such as starting a business, real estate or stock market investing. Here are some useful tips.