Myth or reality?
It is becoming increasingly common to hear talk of financial freedom, financial independence or financial security. Although there are differences, the basic idea behind these concepts is this: to have enough income to live without working. In short, to live on income.
Although money is not everything, it is an important variable. For this reason, it is a source of concern for the average person. Achieving financial freedom would mean reaching a state where money is no longer a source of stress. Imagine the advantages:
- Work should not be compulsory, but voluntary.
- Dedicate ourselves to what really interests us.
- Have much more free time.
- Forget about "making ends meet".
Is financial freedom possible?
The first thing that comes to mind is winning the lottery. Unfortunately, relying entirely on luck is not a viable method of achieving financial freedom. It is possible to earn money without working, but where do we get the passive income that gives us peace of mind?
The answer is investment. Today, thanks to technology, there are many options and, in general, it is easy to take the first steps. Make no mistake: living on income alone is very difficult, but improving our financial situation is an achievable goal.
Shortcuts... don't exist
How to invest with reasonable success? Even Warren Buffett is not infallible, but there are a few tips to help you avoid missing the mark too much.
Save to invest
If we do not have a good capacity to save, we will hardly have the capacity to invest.
Diversify your portfolio
It is always good to divide the eggs into several baskets that are not closely related to each other.
Building a good portfolio takes time, and the results are usually positive in the long run.
Make sure you understand it
If you don't know how it works, don't invest in it: you will be exposed to risks you don't understand.
Everyone knows what a building is, which is an advantage when investing in real estate. Crowdfunding opens up the possibility for anyone not only to invest, but to diversify your investment, as it does not require a lot of money. How?
Platforms such as Urbanitae - the leader in Spain- allows you to invest in real estate development from just 500 euros. It brings together many different savers so that, together, they can provide the necessary capital to finance an attractive real estate project. An exhaustive selection of projects is made based on criteria of security and transparency.
Investors thus become partners of the developer and participate in the typical returns of the sector, around 15-20% per annum. The average project duration is around 20-24 months. All the information about the projects and their evolution is always available on the website. Each investor receives personalised attention.
What it is like to invest with Urbanitae
Urbanitae has financed more than 110 million euros in around 80 real estate projects. It is the crowdfunding platform with the highest turnover in Spain and in 2022 it financed more than six out of every ten euros of real estate crowdfunding in Spain.
Despite the economic context, the results are very positive. In the 18 projects it has returned, the average annual return is 18%: not bad for approaching financial freedom. Almost 3,000 investors have received more than EUR 12.5 million.