Prioritizing the top 3 or 4 for your financial freedom

compounding, Financial Independence, Karma, prioritizing

I have spent so many posts on talking about how you can hit financial freedom. Today I will give you the 80/20 of what I think are the key things I have learnt over the last few years.

  1. The compounding equation – Sum = Principal*(1+(Rate of Interest)/100)^Number of years. Since the 80/20 is fractal prioritizing on the Rate of Interest and Number of Years is critical. Compounding works both ways. If you have taken a loan it works against you and if you have invested, it works for you. The earlier you start your journey to utilize this equation the richer you will become, faster
  2. Taxes – Be an honest tax payer, pay what is due and in full. However utilize all the avenues the government gives to save on taxes.
  3. Always look at increasing your earning capability – so that you can hit your goals for financial freedom faster. Scrimping your way to financial freedom is a long arduous journey.
  4. Always give charity. Its good Karma. In some countries the government also encourages you to give charity by giving tax benefits – refer to point 2 above.

There’s so much depth in understanding just these 4 statements that complete books have been written just to cover these topics.

Since the topic is about prioritizing I will keep the post short. Just focus on these 4 statements and keep finding within them the areas where small effort can give huge returns . Again small hinges move large doors.

Till next time then.

Carpe Diem

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