In theory, wealth freedom can be achieved through fixed investment in funds, but in practice it is very difficult. However, no matter what, using fixed investment funds and other financial management methods will greatly improve your financial situation and increase the value of your wealth. This is undeniable.
For different people, the standards of financial freedom are also different. Don’t be obsessed with the standards set by others
How much money do you need to achieve financial freedom? The answers given by experts and institutions vary. Some say 200 million, some say 120 million, and some say 80 million. But after all, everyone has different living expenses and different daily expenses, so the standards for achieving financial freedom are naturally different.
It is more reliable to tailor your financial freedom standards based on the definition of financial freedom. The so-called financial freedom means that you do not need to rely on labor income, but can only rely on passive income to support daily expenses. This state is the realization of financial freedom.
For example: if your daily expenses are regularly maintained at 8,000 yuan per month, then when your passive income such as house rent, stocks, deposit interest, patent income, etc. reaches more than 8,000 yuan per month, you can It means you have reached a state of financial freedom.
Of course, if another person’s daily expenses are 20,000 yuan per month, then his passive income must exceed 20,000 yuan to achieve financial freedom.
There are a few things to note here. First, this passive income must be sustainable, and second, your property must grow steadily.
Can fixed investment in funds help us achieve financial freedom?
Again, it is possible in theory, but there are certain difficulties in practical operation.
We must first understand what factors determine the return of a fund’s fixed investment? In general, there are three most important points. One is the length of fixed investment, the second is the amount of fixed investment per month, and the third is the rate of return on fixed investment of the fund.
Generally speaking, the longer the fixed investment time, the more principal invested every month, the higher the rate of return, and the higher the final return.
From a time point of view, if you invest 1,000 yuan per month and the rate of return is 10%, what is the difference between investing for 10 years and 30 years? The total income in 10 years is 210,000, and the total income in 30 years is 2.17 million.
Looking at the impact of the monthly fixed investment amount, we set the fixed investment time to 20 years, and the rate of return is 10%. When a monthly fixed investment of 1,000 yuan is made, the income is 750,000; if a monthly fixed investment of 3,000 yuan is made, the income is 2.26 million.
Looking at the impact of yield, we set the fixed investment time to 20 years and invest 1,000 yuan per month. When the return rate is 10%, the total return is 750,000, and when the return rate is 15%, the total return is 1.41 million.
We can see that the fixed investment time, fixed investment amount, and rate of return have a great impact on the final income. Even the different results are a bit incredible, which also tells us that if we want to get more To maximize your income, you can either start investing as early as possible and use your time to increase your income; or you can invest more every month and use your principal to increase your income. As for the rate of return, we cannot control it. If it can be maintained at about 10%, the income will be quite considerable.