Opinion – From Grain to Grain: Understand how you will achieve your financial independence

When talking about financial independence, there are four types of people: those who believe that this is not for them, those who only dream, those who achieve it in advance by an event and those who are on the way to achieving it. Only one factor separates the first three individuals from the fourth. What most don’t understand is that everyone will achieve it. It’s about this factor and how everyone will reach it that I’m going to talk.

That’s right, everyone will reach their financial independence. What will vary between each one is the time and level of independence.

Arguably, the biggest issue is not time, as many worry. The problem is the level of financial independence.

One sentence has always bothered me in the past, and I also hope it will have the same effect on you. As Tennessee Williams stated:
“You can be young without money, but you can’t be old without it.”

Therefore, do not wait to get old to understand that it is important to have accumulated capital.

You might still be curious how everyone will somehow achieve financial independence. For that, let’s define it.

Independence doesn’t mean you have money to do what you want. You are financially independent when you receive an income capable of covering all your expenses and you no longer need to act actively to receive it.

It could come from income from your financial assets, which would be desired, or from the State such as INSS retirement or government aid.

As I mentioned above, the big issue is the level of independence. You can seek to have your desired independence or have independence offered. Which do you prefer?

Usually, when income comes through the State, you need to adjust expenses to match the income received.

Those who believe that financial independence is not for them and those who only dream about it fall into this category.

You may be lucky enough to fall into the third case, that is, those who, by inheritance, luck or being at the right time in an investment, managed to reach their independence early.

However, the greater probability is that relying on this will lead you to the first two cases, namely those where independence is restricted.

Only the fourth situation remains. This is the most natural, but it will take some effort.

Anyone can achieve the desired independence, but few plan for it and even fewer people put into practice the plan they have devised.

Since the majority cannot, they blame someone or something, for example, the government, the market, children, parents, partner or bad luck.

Thus, the factor that separates the fourth type of individual, that is, those who are on the path from those who are not, is planning for this independence.

The most difficult part of this plan is not the elaboration, but the discipline to follow it.

For the preparation of this plan, six elements are necessary: ​​the objective, the deadline, the periodic contribution, the minimum long-term return, the investor profile and the allocation of assets.

Don’t wait for luck to decide for you, or for the State to decide what your level of independence is, build a plan and decide for yourself your desired level of financial independence.

Michael Viriato is an investment advisor and founding partner of Investor House.

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