Financial independence necessitates a methodical approach

George Daniel Horatio, the Head of Sales and Marketing at EcoCapital Investment Management Limited, has emphasized the importance of taking a step-by-step approach to financial independence.

During a virtual meeting titled "Financial Freedom, a Myth or Reality," he addressed common misconceptions about financial freedom and emphasized that savings and income, not age, define financial freedom. Mr. Horatio explained that financial independence is attainable, but it may require several years of consistent investment.

"Investment and financial independence are a step-by-step process. It's not something you wake up one morning and find yourself in. "It can take a long time, sometimes 20 years or 15 years," he said.

He also noted that many people have lost faith in investments, resulting in them spending their money on things that will not benefit them in future, or keeping their money without considering the positive impact of investing in a business.

Mr. Horatio, on the other hand, urged Ghanaians to invest gradually in businesses in order to achieve financial independence.

"We are in a period when people have lost faith in the investment arena or the investment landscape. Many people would rather keep their money for reasons other than investing and planning for the future," he said.

Financial independence, according to Mr. Horatio, is the ability to rely on one's income and wealth to cover living expenses. He clarified that while some people are born into wealthy families and automatically become financially independent, others who are not as fortunate may take longer to achieve financial independence.

He went on to say that financial independence includes not only the money saved over time, but also the proceeds from investments made, which could be in the form of dividends paid out or an increase in the asset price of one's investment.

According to Mr. Horatio, achieving financial freedom is also dependent on the asset price appreciation for the investment made over time. If the profit from an investment is always greater than the expenditure or spending, one is said to be financially free in perpetuity.

EcoCapital Investment Management Limited is a wholly owned subsidiary of EcoCapital Global LLC, a well-known African emerging market investment management firm. Since its inception in July 2013, the company has provided investment advisory and management services throughout Ghana.

As the world changes, EcoCapital Investment Management Limited says it is looking into new ways to provide services to the Ghanaian people. As a result of the company's recognition of the importance of technology and its potential to transform the investment landscape, it is investigating various technological solutions to make its services more accessible.