Vacation is time is a perfect time to write a blog post. This time we discuss Tax Liberation Day or Tax Freedom Day and why you should take your financial future in your own hands.
1. Tax Freedom Day
2. Why you must LEARN how to Invest and Trade
So basically we are working more than half a year for the Belgian government. The government as above outlined does NOT deliver the BEST QUALITY services for the money that the taxpayer pays. Basically the taxpayer is always paying for the OVERSPENDING expenses that a government or failed politicians have done. Each politician has an EXPIRATION DATE…they can’t be re-elected or the public doesn’t like him or her anymore. A citizen can’t spend more than his salary or he soon will be broke. A government can continue to overspend and ask more money from the taxpayer…
So the government will ask more and more taxes in different ways… That is a simple FACT ! Also the last government had little impact on peoples’ buying power.
My Why 1 : Invest continuously in Financial Literacy Skills
The decline of the long term interest rates has made it very hard for investors to find an asset that gives a return higher than inflation. An investment that yields you more than the 2% inflation.
Bond investors have seen really bad returns as the ECB continues her zero interest rate policy. Central banks gave the signal that they want to lower the interest rates more if the economy doesn’t improve nor inflation increases. So people who save money on a savings account, won’t see any better returns either. This can continue for the next 10 years. If you invest in a government bond or save money on a savings account, you ARE LOSING MONEY.
Finding an investment that gives you more than 2% per year, requires learning how to invest. Learning how an ETF tracker works that follows an index, a sector or commodity such as gold, silver or palladium.
The MSCI World as world index gives you the highest diversification and gives you a net return of 1,75%. An European Stoxx600 ETF gave you 2,66% net. Learn how to invest in holdings, REIT, Dividend Aristocrats and many more assets.
Learning how to invest insures YOU DO NOT LOSE PURCHASE POWER !! Or do you like losing money ? Read my retirement plan blog post if you want to know what financial literacy skills I want to master like a PRO.
My Why 2 : Trading is Fun !
Investing or Trading, what is the difference ? Actually there is not so much difference to my opinion. You simply learn how to generate cash out of the stock market on a shorter time frame. 95% of the traders fail, that’s what the statistics say. Actually there are only two reasons for that fact. It is called mindset and risk management. If you can’t control your emotions, you will simply fail. If you can’t manage your risk, you will simply fail.
So far my learning journey on trading stocks, options or forex has been fun ! Some trading strategies don’t fit my personality. Others made me a better investor and trader. I always learn something. Each mentor session makes me a better investor and trader. It’s all about learning a skill. You respect the process and success will follow.
3. Final Words
Each person decides his own path in life. Bill Gates said it clearly in the following quote. Do what you are passionate about but never complain to me that you don’t have ANY money. How much time you spend on social media such as Instagram, Facebook or Snapchat ? How many series you follow on Netflix as otherwise you can’t talk about it at the kitchen table with your colleagues at work? Sorry but it all depends on YOUR attitude and mindset. I have seen people make 1 million $ from 500$. Real MONEY ! So don’t tell me you can NOT do it. It all starts with the right mindset and persistence.
This is the end of this blog post.
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Source : Brussels Express
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