Once you are earning enough, it is a good idea to find new ways to invest and diversify your savings. This will not only keep you financially free, it will also lead you to financial independence.
This article will help you find financial freedom through property investment, build your portfolio and help you to gain financial independence sooner.
What is Financial Freedom?
For one person, it might mean an income of $50K a year, or for others it could mean an income of $100K. This is because financial freedom depends not on how much you earn, but how much you spend.
If you are saving enough each month, it might mean through investment and smart financial choices, you can begin to make more money off your savings.
Eventually this can lead to early retirement, which means you become completely financially independent.
Setting Realistic Financial Goals Is Smart
To start on your journey to financial freedom you will need to set reasonable and realistic goals. Your financial goal may be different from others, so it’s important to set up a personalised plan based on your income, savings and liabilities.
Many people start investing in property without a plan, and this can result in problems down the track. We all need to start somewhere, but remember to make sure you’re earning enough to cover costs of living and then some, then it’s time to start investing.
Investing in property is one of the most reliable and intelligent ways to start earning passive income. Passive income is defined as the earnings you derive from an enterprise you are not materially involved in.
In other words, money you make for not working! In order to get this point, you will need a smart financial plan that takes into account your current income, your expenses and your current financial position.
Before buying into the property market you will need a plan tailored for you, as a good investment for one person may not be right for you.
Investing in Property to Reach Your Goals
So, what are some smart ways to get into property investing? There are a lot of ways to start making money off the property market.
From collecting rental income to flipping houses, there are a lot of ways to turn that house purchase into a money-making machine and achieve financial freedom.
Building Income from Properties
Building income from properties starts off simple. By renting out a house to some lucky tenants you can start to see an income.
Rental income can then be used to generate enough income to put towards investing in more rental properties. This significantly increases your passive income and allows you to build an impressive portfolio.
After you have built up your portfolio, buying a property outright can be a great way of building more wealth.
By purchasing a house outright, you avoid debt and interest. The house essentially costs you very little to own. During this time you can rent it out, or renovate or update.
You can then sell it once it appreciates in value and use the profits to pay off the mortgages on your other properties.
Selling for Profit
Flipping houses for profit has become very popular in recent years. Whether that’s investing in a rundown house that needs a little TLC, or buying property in an area that you predict will see a boom.
Buying property that will appreciate in value is a great way of giving you enough funds to invest in more houses, building your portfolio and increasing your passive income.