© 2017 by ESIR Investors

Financial education and Financial freedom
I welcome everyone in this new chapter and journey. Since April 2016 I started a blog on medium where I shared my journey, analysis and ideas about trading/strategies/mindset and much more.
Over the years I have learned that the most important feature you should focus is your mindset. Only with the right mindset we can find the path to success and wealth and a positive change in our lives. Staying stuck in the get rich quick dream, looking for systems or autotraders, or strategies to make money will most probably not get you far. It is all about doing what really works for those who get wealthy. Grow a business, do what you love earning money, get passionate about it, earn more, spend less, stop living lavish and living to display status, cut everything down what you don't really WANT to only what you really NEED, budget!, journal, understand the difference between a NEED and a WANT. I have written about many of these topics and focusing more about the right mindset on my last ones. Along the way I have written great articles about the get rich quick dream and scams and trading advice, specially about leverage and a risk management sheet and some fundamental analysis and much more. Join my FaceBookGroup and I welcome you all to the ESIR community to stay updated with my regular updates and articles.
EARN, SAVE, INVEST & REPEAT, this is the true holy grail.
Be patient and break down your goals into achievable steps with specific dates and work for them as hard as you can.

We don´t need any fancy studies or degrees to get financially educated. We only need to get aware of the hidden truth and start improving our mindset. If you take just a few minutes of your time reading the articles below it can change your future and be the start of your financial freedom journey. Do you want to live on borrowed money and debt as a slave from the banks or get in charge of your future today?

 
1# The hidden truth! Why the wealth of 99% of the population is the same as the wealth of the top 1% of the population.

2# The ESIR mindset. What is more important for you? Financial Independence or Displaying Status?


3# Financial Freedom and the right question to ask!

ESIR Investors is all about Earn, Save, Invest & Repeat. One of the rules of preservation of wealth is to diversify and have your eggs in different baskets to grow several streams of passive income. This Pamm account (Percent allocation management module) provides an investment opportunity for one of those streams of income with a longer term time objective. It might require you to embraced the ESIR mindset. Earn, Save, Invest & Repeat. Before you can actually dream about the lavish life and spend your millions, what are you doing today to get financially secure, financially independent, growing any stream of passive income? What do you actually seek first? Having more free time, stop worrying about getting fired, stop working from Monday to Friday, changing job doing something you actually like and having more time for your family?
The more you spend the harder it will be for you to achieve this goal. When I ask to someone how much would you need to live a frugal comfortable lifestyle, to have food and shelter, pay your basic bills, have a transportation, pay medical bills, have warm and clean clothing, nothing fancy, no expensive cars, no huge homes, etc…many just really never understand the question and the concept and provide a quick fast answer like 5.000$. Then I ask them how much they earn every month and they answer 1.200$. Then I ask them "do you have a warm bed to sleep on? Does your fridge have some food? Do you have a working car?" And the answer is mainly yes to all my questions.
No one wants to live below their current standards, but only above and this is why no one of these people gets financially free in the first place. Instead of focusing to make 1.200$ without an active day job in the first place, they keep dreaming about 5.000$ every month to buy everything they see on tv and have been programmed to think they really need to be happy.
You need to think in goals and steps and have a working plan to execute today and every day to reach this first one big goal. When you’ll make 1.200$ passively you can actually stop working. How great would that be? If you would still be working you would make an extra 1.200$ every month. To get wealthy there is always hard work involved, many achieve it growing a business selling anything or providing services, others achieve it through investing and budgeting. The most popular quotes of Warren Buffet highlight precisely everything we keep doing wrong.

On Earnings: “Never depend on single income. Make investment to create a second source.”
On Spending: “If you buy things you do not need, soon you will have to sell things you need.”
On Savings:” Do not save what is left after spending, but spend what is left after saving.”
On Taking Risk: “Never test the depth of river with both feet.”
On Investment:” Do not put all eggs in one basket.”
On Expectations: “Honesty is very expensive gift. Do not expect it from cheap people.”

If we spend less and manage to reduce our living standard we can tweak the balance sheet in our favor and save more and fast forward many years our early retirement.

According to the Trinity Study with a very high probability we can live from a balanced portfolio withdrawing only 4% of it every year without running out of funds after we retire. This study considers several market periods, positive years, negative years, recessions, etc..
Based on this 4% figure we can now calculate our financial freedom amount. Following the example above of 1.200$ every month, we would need 14.400$ every year. What we basically need now is a portfolio so big that 4% of it would be 14.400$. For that we can just divide this amount per 4%, or multiply this amount per 25 (the inverse of 4%, 1/0.04). Our portfolio would have to be 360.000$. For simplification purposes I don't consider any taxes, every country has his own regime and a few are exempt from taxes on capital gains. 

Now that you know how to calculate your financial freedom amount, many will find it hard to reach when they don’t even have a small rainy day (emergency) fund set aside. This is why we have to think longer term and break down this goal into smaller steps with a plan of action.
EARN - Focus on having a steady paycheck as a start and then be creative and use any skill of yours to make some extra cash. You are good at cooking, promote your cakes or special recipes with your friends and earn some extra bucks, maybe you will grow it into a business. it can be as simple as washing cars, making its maintenance, cleaning, selling, building, repairing, any hobby of yours you like will do it. just promote it, talk about it and try to get some sellers. increase your income.
SAVE - Budgeting will be the first big change to do. You will never realize how much you spend and where you spend if you don’t write it down and budget. The small water bottle you buy every day at your coffee break for 1.50$, on a 21 day working month, that’s 31.5$. If you buy it in bulk in the store you have the small bottles for less than 20 cent. At the end of the year you can safe an extra 325$ and still have your small bottle every day. You use to go out with your family every second weekend and spend 60$ on the restaurant, that is 3.240$ every year. Go a few times to your parents or make a few picnics or maybe socialize with neighbors with some home dinner parties. You have a huge car with high mileage and huge rims, do you know that only changing rims from 17” to 16” can save you almost 400$ on a complete full change of tires? What about a smaller and more economic car? You will save on the insurance and gas. Do you have a Netflix or cable subscription and pay 15-45$ when your kids monopolize the TV watching cartoons and you don’t let go of Facebook and Youtube? That is another 180-540$. Do you have that super brand new Phone with a data package where you pay 50$ every month? First you have amazing Phones for 200$ and can save 500$ instantly and then you will find cheaper packages that will perfectly suit your needs for 20-25$. And that’s another 800$ saved every year.
Did you ever really written down for one complete month every cent you spend?? I highly recommend you to do it just for 3 months just to get an average and an idea where your money goes?
Then understand the difference between a NEED and a WANT. Getting aware with the 50/30/20 Rule will help you and will set a rule of thumb for budgeting. http://bit.ly/50-30-20home_budgeting_rule
INVEST- When Investing we have two opposites, people that believe all the marketing and fake videos and advertising out there that somehow they are convinced people are making thousands of dollar every day with a small investment, when most of what they see is all just marketeers and scammers with demo accounts, or Photo-shop of several prints, or trading cent accounts showing off 1.000$ profits when in reality it is only 10$, or using two different accounts with bonuses and hedging and only showing the daily results of the winning account, etc...

On the other end many believe that they have to save up a big amount to start investing. Here is a simple example, Investor A starts with 2.000$ and saves and invests 200$ every month. Investor B starts with 4.000$ and saves and invests only 50$. Both invest in the same fund  with a conservative monthly average performance of 2% per month. After just 18 months, Investor A and B would have the same balance and in 15 years Investor A would be above 400.000$, while Investor B below 230.000$.What matters is not how much you start with, but getting it started and saving on a consistent basis. The more you save the faster it will grow. Action is the key word. get it started.
REPEAT - Every step matters and requires action! This requires real discipline and a strong mindset, if you do it just once or one month you are fooling yourself. Repeat every step month after month and keep pushing yourself to improve every one of it.

First I want you to grow a healthy mindset regards Investing in the first place. Here are a few articles I wrote sharing one of my own experiences.

4# To gamble or to stop losing money​

5# My most honest article so far — I don’t want you as an Investor…

Check the tabs About us, Goals and Invest to cover all details and recommendations. Best of luck to everyone

Whitepaper

Below is an example of the power of average investing 200$ on a monthly basis on a 2.000$ starting participation combined with compound growth, reinvesting 100% of all profit - Green line.
ESIR Investors, a managed account where everyone can invest on a steady basis and grow over time.
The yearly return is an average estimation on past performance and is not indicative of future results.

 

RISK DISCLAIMER
Trading on margin can result in losses that may exceed your deposited funds. Please ensure you fully understand the risks or seek investment advice if necessary. Any analysis, opinion, commentary or research-based material contained in my posts/blog/articles are for information and educational purposes only and not intended to be an offer, recommendation or solicitation to buy or sell. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may read/receive it.

HYPOTHETICAL TRADING DISCLAIMER
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss in excess to your investment and therefore you should not invest money that you cannot afford to lose. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Any opinions, news, research, or other information contained on this website is provided as general market commentary and does not constitute investment advice. ESIR Investors will not accept any liability for any loss or damage, including without limitation to, any loss or profit, which may arise directly or indirectly from use of or reliance on such information.

This site was designed with the
.com
website builder. Create your website today.
Start Now