IT´S NOT JUST ABOUT MONEY!

Money is important but not everything in life. Excessive greed is bad, leading to speculation, the mother of the country's financial problems. All have heard that greed and fear are the main market factors... very simple, I sell because I have fear of losing and I buy because I'm greedy and want to win.


The lack of ambition is something else...a different subjet.


Financial freedom is just a term given to economic well-being based on creating multiple passive income. That´s all. We should all aspire it, in fact I consider it healthy as it is part of our human nature. We must focus on the way and technique to achieve good results, and one of the control parameters is our free time. It´s not just about earn 200.000 dollars in one year... it´s about the time spent to achieve it too. Time devoted to family, friends, leisure, etc., are the difference between being financially "stable", or be financially "free. "


The money in the end will be linked to good planning and good methods. But "freedom" will be linked to a different investment structure, in both time and money. That´s the real important about this philosophy of life.


Being successful in finance may come from many ways, but must be understood: there are rich people living a poor financial scheme, ie they work from sunrise to sunset, no time for his family, high debt, high consumption, long-term uncertainty, dependence of an entity. In the other hand we have technically poor people living their life with a rich person structure: their money works for them, their revenues exceed their expenses, reinvest their profits into new businesses, have enough free time for their families and friends, their debt is generally justified and "pays itself", and are less consumerist.


In the first case these people are doomed to follow in the "rat race"which is a vicious circle of working-profit-debt-consumption. In the second case, the potential for exponential growth is unquestionable.


Will agree with me that the process is more important and that viewing it from a systemic point of view, in the end...financial freedom is not just about money!

MONEY DOES NOT EXIST!

One of the most sinister statements I have discovered during my research about about money, is that MONEY DOESN´T EXIST!. To you reading this, it may sounds unbelievable... but unfortunatly it´s true. Most of the money in the world are just numbers on your statement or digits on your computer ... not real money. That is, if you count the real money that exists in the vaults of all banks in the world and it´s compared to the virtual money, could only cover 10% of it. The rest of the money doesn´t exist.
And worst of all is that this is permitted by the law of the countries through a mechanism known as "cash ratio." It is an economic fact that a bank only needs to have in its coffers 10% of all depositors' money ... it's a matter of "probability." What is the real chance that at any given time depositors withdraw more than 10% of funds from the bank? Well ... very low. Then the loan portfolio of a bank is based on the remaining 90%. It can be "borrowed" and charge interest on them.


But in real world, 9:1 rule doesn´t work like that. You make a $1000 deposit (according to 9:1 rule, the bank should keep $100 and lend $900) ... but what really happens is the bank keeps $1000 and lends $ 9000! How much money is in the coffers? ...Only $ 1000. How much for trading? ... 9000,oo new bucks that are now on the streets. The bank never had the money... They created it!...and they get interest paid as a plus. Besides that, money usually involves a warranty like a house, a company or a car. What happens if you do not pay? The bank takes it all: your house, your car, your whole life ... plus interests... in exchange for NO INVESTMENT!

Cool eh?
I do not want to create arrays with this opinion. Just considered it necessary to emphasize the role each part plays in money management. The debt to banks is dangerous and must be well managed. At the same time, investment papers, certificates, bonds, etc., must be balanced with investments lines that do not suffer the vagaries of inflation and devaluation, as precious metals, real estate (although the recent crisis, but go with care), productive investments, manufacturing, etc.

You have to have as much information as possible and build your own method to get to financial freedom... But we are all in it..isn´t it?

GREETINGS TO ALL BLOGGERS INTERESTED IN BUILDING YOUR FINANCIAL FREEDOM!

Some time ago I read the famous book by Robert Kiyosaki, "Rich Dad, Poor Dad"and I have to confess that I moved a lot. For those who don´t know it, the book is about the money, and how the author Robert Kiyosaki, who is American altough he seems to be eastern, compares the way in which both parents (his real biological father and his mentor) managed money and investments.

I am sure for many people this book has been awakening to financial freedom ... it´s not a technical book and I recognize that it is full of clichés. It´s not about teaching people to get rich ... it's about teaching us to see the right way to do it. Others of you have probably caught the bug of financial freedom by other methods.

In any case, this blog is intended to share information with you and be a meeting point for all those who are still in the "rat race" and struggle day to day with all kind of obstacles in their trip to economic tranquility.

So the advice and opinions should be directed to help those who are still in the "first phase"in the process of building our "financial freedom. "

I hope we have many lively discussions, solve problems together and exchange ideas on important issues related to personal finance and investment.