Financial independence

What does financial independence mean?

Becoming financially independent is a dream for many. Perhaps you have found your way here to our website because you too are driven by this. There are many different concepts around the subject of economics in relation to work such as financial freedom and financial independence. Below we describe more about the different concepts and how we use the interest-on-interest effect to increase our capital. Setting clear goals and plans for how to achieve your goals and how you want to live your life is something we really recommend. In addition, this is a very good way to get on your journey towards becoming richer, financial free and financial independent.

Financial freedom and financial independence

Financial freedom

Being financially free means that your passive income is greater than your total expenses. This means that you can afford accommodation, food and all your bills and other expenses without having to have a regular job. For us, that means not just being able to pay our bills and have food on the table. We also want to be able to maintain a good standard of quality of life along the way.

Imagine if you would never have to worry about money again and instead focus on realizing your dreams. As financially independent, you can live from your capital and cover all your expenses without having to limit yourself. As an economic independent, you have the opportunity to settle down and live in any place.

Once you know why you are investing your capital and what it can lead to, it will be easy to make the decision. It is not only the goal but also the journey there that is important to us, it should be fun along the way. Let your goals be your motivation and your path to achieving your dreams.

Live more and work less

There is a model that describes 3 levels of behavioral change that can be applied to how you in practice can succeed in increasing your capital.

At the heart of the circle you will find your identity, or your ”why.” This describes why you want to achieve change and is your driving force. For example, it could be to work less and get more valuable time with your family.
In the middle layer you have your processes, or your ”how”. This is about what you do in concrete terms in the short and long term to achieve your goals. For example, to increase your capital, you can actively choose to reduce your unnecessary expenses and invest all the excess.
Finally, in the outer layer you will find your result, or your ”what”. Most changes in life are made at this level and are about setting goals on what you want to achieve. For example, it can be to be financially free and be able to control your own working hours.

How to increase your capital

Simply put, increase your capital as below:

Reduce your expenses
Increase your income
Invest more, preferably with the interest-on-interest effect

Interest-on-interest effect

We think this is genius! When you invest your capital, you often get an interest rate. If you then reinvest the interest, you will get the interest-on-interest effect. Over time, the effect of this will be great because it grows exponentially and can be likened to the snowball effect. Because the effect of interest-on-interest increases over time, you earn more money the earlier you start. In addition, this is affected by the size of your capital and how long you invest.

There are various factors that affect the effect of interest-on-interest rates:

The interest you get on your investment
The time you leave the money invested
Initial investment capital
Increased savings over time
Tax you have to pay

Us behind Wega Invest love the interest-on-interest effect. We therefore strive to give you as high interest as possible based on each real estate project and your investment capital. In addition, you can easily and passively reinvest your interest and capital with us.

Goals and strategy

Would you like to have 52 weeks of vacation each year instead of 5 weeks? Would you like to own your time and be able to devote yourself to your family, your health and what is close to your heart?

We have chosen to design our life the way we want it and have set our goals and plans. To achieve the goals, we focus on what is really value creation for us and on automating as much as possible. Our strategy is to control our own working hours and also where we want to work from. Thanks to the fact that we have defined this, we are already seeing that we can live a freer life and have time for what we want. If you want to read more deeply about this, we can really recommend reading Timothy Ferris’s book 4-hour workweek that has inspired us.