Financial independence requires step by step approach


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

Speaking during a virtual meeting, ‘Financial freedom, a myth or reality’, he addressed the misconceptions surrounding financial freedom and highlighted that savings and income, not age, define financial freedom. Mr. Horatio explained that financial independence is achievable, but it can take several years of consistent investment to attain.

“Investment and Achieving financial independence is a step by step approach. It’s not something that you wake up one morning and you are there. It can take several years, 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.

However, Mr. Horatio urged Ghanaians to invest little by little in businesses to achieve financial freedom.

“We find ourselves in a dispensation when people have lost confidence in the investment arena or the investment landscape. A lot of people would rather keep their monies at home or use their money for purposes other than investing and looking forward to the future,” he said.

Mr. Horatio defined financial independence as the state of being able to rely on one’s income and wealth to cover living expenses. He clarified that while some people are born into wealthy families and become financially independent automatically, others who are not as fortunate may take longer to attain financial freedom.

He added that financial independence is not just the money saved over time, but also the proceeds that come from the investments made – which could be in a form of dividend paid out or appreciation of the asset price of one’s investment.

According to Mr. Horatio, achieving financial freedom also depends on appreciation of the asset price for the investment made over time. If profit from the investment is always higher than the expenditure or spending, one is considered to be financially free forever.

EcoCapital Investment Management Limited is a subsidiary of EcoCapital Global LLC, a renowned African emerging market investment management leader. The company has been providing investment advisory and management services since its incorporation in July 2013, serving the entirety of Ghana.

As the world continues to evolve, EcoCapital Investment Management Limited says it is exploring innovative ways of delivering its services to the Ghanaian public. The company recognises the importance of technology and its potential to transform the investment landscape, and as such is exploring various technological solutions to make its services more accessible.

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