Random Thoughts on Money and Financial Freedom
Somewhere in my younger years I was convinced that ‘money’ is the root to all evil, as the saying goes.
But at the same time, we all want nice careers and make enough money so that we are financially stable and able to travel and do the things we want to do.
And financial freedom is something that I wish I would’ve focused on early in my life. Money is not the root to all evil, but a means to gain freedom from toiling and sweating in the workplace. But, how can we gain financial freedom so that we can have the time (very important) and resources to do all the things we have always wanted to do?
Well, that’s a good question, and it’s been in the back of my mind for quite sometime.
Income Streams and Financial Independence
All my life, I’ve worked 2-3 jobs at a time. When I worked at the bank, I was also a professional musician, and I would do things on the side like have yard sales and such.
Now that there are many opportunities online to make some money, or follow leads that could lead to earning money, it’s important to note that ‘income streams’ are a way for one to generate positive cash flow.
Passive ‘income streams’, like buying dividend stocks with a nice annual yield are one of the best ways to let your money work for you and earn money while you’re sleeping, so to speak.
Compounding investments can help grow a portfolio, slowly but surely, and I’ve been getting into DRIPs (Dividend Re-Investment Program) lately to buy more shares with the dividend earnings, which in the long run is a great way to compound investments.
But even though a Money Market account or Certificate of Deposit is at a lower interest rate, the compounding of these investments will also help build wealth, especially in retirement when you need funds to get by and hopefully to travel more and do activities that cost money.
Myself, I don’t plan to retire anytime soon but I DO want to have income streams that I can manage and activities that are more passion-related, like playing music, that will still give me some income while enjoying performing music.