The historical data of the US’s S&P 500, Australia’s ASX 200, and Singapore’s ST Index have consistently demonstrated the importance of a long-term mindset in the financial freedom journey. Studies have shown the long-term average annual returns of S&P 500 Index stocks were at least 9.35% with dividends reinvested over 150 years.
Imagine it is you who reach financial freedom. You will be able to choose to travel more. You can choose to go on cruises more. You can choose to spend more quality time with your family and loved ones. You can choose to do more volunteering work. You can choose to spend more time on your passions and hobbies. You can choose to put more focus on your personal projects that you were not able to work on if you are engaged in active work. You can even choose to start a new career which you truly love to do, not for financial consideration.
Without a doubt, not having to worry about finances is so important. The freedom of choice is so powerful.
Reaching financial freedom does not mean retirement. If you love the active work you are engaged in, you can choose to continue to do so. It is entirely your choice.
Financial freedom empowers you and gives you the freedom to choose.
Albert Einstein, one of the greatest physicists of all time, has a famous quote: “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
Do you know why?
Compound interest is an important tool in wealth building for financial freedom. Compound interest could make you a millionaire if you have the time.
Have you been making the best use of compound interest to build your wealth?
Have you ever wondered why some people always go on cruises, travel to places, and spend quality family time and do not seem to have to work to earn an income? How do they financially support their lifestyle and living expenses? The magic may be passive income.