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Tuesday, April 7, 2009

Finance II: Investments That Work

By Mara Hernandez-Capili

Many of us are dreaming of that special day when we can sit back and relax at a fabulous island while sipping a cold pia colada, not worrying about missing work (because you dont work!) and just thinking of the countless money that is earning itself in your bank account. Sounds fantastic right? How would you feel if I tell you that this kind of lifestyle is within your reach, you just have to exercise on your financial intelligence to have it?

Gaining financial freedom requires us to exercise our financial intelligence. It motivates us to read books related on the subject, attend seminars and practice what we learn from them. In this way we will learn various investments and income streams that will be our ride to financial wealth and freedom. This article is to provide you with information on how to gain financial freedom by having investments that work.

First type is stock trading. Stock trading is when you buy a piece of share or stock from a publicly listed company. When you buy a piece of share from them, you are treated as a part owner of the said company and will enjoy privileges such as voting rights. Stock trading also has risks involved that are why a lot of people think twice before investing in stocks. Your capital may increase if the company starts to enjoy higher profits and has a danger of having no returns if the company experience losses. If you are the type of investor who is not open to risks then this type of investment is not for you.

Second is to invest in real estate. Buying a piece of real estate and having it rented is a very favorable investment. It can pump you with money month after month. It is a classic example of having your money work for you. A word of advice: start building your asset column first by buying assets first before buying liabilities. Assets are those who put money in your pocket while liabilities are those that take away money from your pocket.

I suggest that you learn more about investing on stocks as it is practically fun and challenging. You will have more time in your hands to focus more on your other investments while watching your money grow right in front of your own eyes. - 23199

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