Many people have financial dreams. Most of them involve suddenly becoming very rich and having enough money to pay off debt and buy stuff that they want. Unfortunately, even though such things do happen, the chances that they will happen to you are somewhat small. Investopedia identifies four financial fantasies that can trip you up:
- Make a ton of money with a Web site.
- Make a ton of money with an IPO.
These types of financial fantasies reflect the desire to get rich quick — and with little effort. Unfortunately, the path to financial freedom requires a little more effort. The reality is that inheritances are rarely as big as you’d like, the lottery isn’t won by everyone, and you have to work hard to make a successful Web site or IPO.
Instead, you might start thinking about ways you can increase and diversify your revenue streams. A Web site or an IPO is still possible, but you have to take the time and put in the effort in order to build up the Web site or company. You can also consider dividend-paying stocks as a way to get a little more revenue stream (they do exist, and you can earn some money — even in this economy). Starting your own online business can be a good way to generate revenue as well (it’s related to starting a Web site). However, in order to be successful, you have to provide useful information and products and services that others can use.
In the end, the best thing you can do to start down the path to financial freedom is to honestly evaluate where you are now and create a plan that can help you achive your financial goals. A plan that involves spending priorities, wise use of monetary resources and careful cultivation of income.