So when it comes to learning how to manage your own money, are you listening?īy the time you finish reading this article, you’ll be ready to close your eyes and open your ears to the best financial podcasts that can help you make the most of your money to enjoy life more with less money stress. There’s a popular saying that money talks. But as long as the market performs, which it always has in the history of mankind over the longterm, you'll do fine as well.Share on Twitter Share on Facebook Share on LinkedIn Share on Pinterest The residual risk will be more or less market risk, which is inevitable if you want to make any money. You can't invest without risk, but you can diversify away the so called idiosyncratic risk.
Part of that is choosing low-risk investments. in RE, your tenant, your local market, your neighbours, natural disasters etc), but also dependant on skill, expertise, effort, to make the right decisions.įI is about independence, that entails not being dependant on these factors, too. That means you're dependant on a bit of luck, on many different conditions (not just the market itself, but e.g. Entrepreneurship can be part of the path to FI and RE, don't get me wrong, it just isn't a universal thing like the core principles of FI which is to save and broadly invest your money.Īnother core principle of risk is that, the higher the risk, the more dependant you are on probabilities ruling in your favour. Rather I categorize it as entrepreneurship of a risky variant. I'm a RE investor but it's not for everyone and I tend to view it separately from FIRE. This path is full of moderate winners, some big winners and barely any big losers or even small losers at all.
It's something virtually everyone can do at whatever skillset, whatever location, network, background etc. Instead it's about making low-risk active income from a job, saving it and investing it in again a low-risk long-term diversified portfolio that generates passive income. Entrepreneurship is full of big and small winners and losers.įI and RE aren't at its core about entrepreneurship. Real estate more so than many because of the inherent leverage involved, which magnifies both profits and losses.
Whether you start a restaurant business, a webshop, a car dealership or a real estate firm, being an entrepreneur takes lots of risk, and the rewards are higher as well. Real estate is like being an entrepreneur in any other field.
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