Saving for a rainy day is the key to Financial Freedom:
It'd be nice if money grew on trees and all we had to do was to harvest what we required; that way everybody might have financial liberty, nevertheless it doesn't work that way; it takes a little planning and some incentive to have a sufficient retirement. It is not about getting rich but about having enough to live as you would like when you retire. It has been proved that money over and above what's needed to live at a desired level adds no satisfaction.
The target is to be financially free and the majority by the point they reach retirement are anything except free financially; in fact the stats are dismal to say the least. Here is how it stacks up:
Financial standing of those reaching 65 and retirement age:
- 1% will be made
- 4%will have financial liberty
- 41% will continue to have to work
- 54% will be broke
It's been claimed that 85% of people over 65 couldn't write a check for $600 above their monthly expenses; they do not have the money. Wow! That implies that only 15% are anywhere near financial independence. The reason why this occurs is that folk do not discipline themselves to save when they are young and continue all though their lives.
Financial independence is the results of thinking smart, spending smart and investing wisely:
Think smart concerning a credit card. The sole smart way to have a credit card is to clear it each month and since most individuals do not have that sort of discipline, the smart move to make is to have none at all. If you think that you need to have a credit card, get a paid up one after you save up the money. Cut up your ATM card and clear it and save 18% a year on interest.
Think intelligent about the cash you are spending to drive a new car. Let's say you purchase a new car every four or five years at $500 or $600 a month; why not drive a second hand car that you saved up and paid cash for and save $500 or $600 a month? You will say, "I like to drive a new car". OK, think about it: driving a new automobile could cost you a million dollars or more off your retirement; is it worth that to you, if so carry on.
Do not get suckered in on the same as cash: buy now and pay no interest or payments until next year. The reason this offer is formed is that firms know that the majority will not clear it in the cited time and then they can charge the back interest which can sometimes be a lot of cash, as much as 21.9%.
Invest cleverly; do your prpearation before you invest. Read some good books on financial investing and planning. The investing plan changes with the times so don't get stuck in yesterday's mode. Do not let brokers sucker you into investing into their products. Learn how to be your own broker. Listening to brokers has cost me thousands. There are plenty of financiers who are in the circle that send out monthly newsletters on sound investment; subscribe to one.
Save just $1,000 a year, invest it sensibly and be a millionaire when you are 65, if you start at age 25, and that's a lot better than broke at 65. Save $3,000 per year and invests it intelligently and have $5.8 million at retirement, if you start at age 25 and continue until 65.
The question is: how could an individual at 25 save a $1,000 a year while trying to make provision for a young family and make ends meet? A person and his wife who smoke could easily save 1K a year if they were willing to give up. If you're leasing an automobile, it is like throwing a $100 dollar bill out of the window every month; don't and save at least 1k a year. There are plenty of ways to cut down on unnecessary spending in order to save a $1,000 a year. Be smart and work out the solution.
You may well think this is a hard way to have financial independence, but it isn't that hard at all; it just takes determination and a little brain power. Also read my article on, "10 proven steps to money freedom."
Conclusion:
Financial freedom is great; I should really know because I have it, but I might be remiss if I did not also tell you that it is only part of experiencing complete liberty. Financial freedom is the material part of life. There is. Another kind of liberty called spiritual liberty. It's the liberty that frees man from the penalty of sin and secures his spiritual future. The Bible claims that, "The wages of sin is death", Romans 3:23b. Death is separation; physical death is a separation of the soul and spirit from the body while spiritual death is the separation of the spirit of man from God.
This is an amazing thought; Spiritual death means a unending separation from God, his love, his peace and joyour love ones and friends for all eternity; a loneness that never ends. Spiritual freedom means the opposite; it means being with The Lord God, his love, peace and joy, friends and loved ones for all eternity. Learn how to have spiritual freedom.
It'd be nice if money grew on trees and all we had to do was to harvest what we required; that way everybody might have financial liberty, nevertheless it doesn't work that way; it takes a little planning and some incentive to have a sufficient retirement. It is not about getting rich but about having enough to live as you would like when you retire. It has been proved that money over and above what's needed to live at a desired level adds no satisfaction.
The target is to be financially free and the majority by the point they reach retirement are anything except free financially; in fact the stats are dismal to say the least. Here is how it stacks up:
Financial standing of those reaching 65 and retirement age:
- 1% will be made
- 4%will have financial liberty
- 41% will continue to have to work
- 54% will be broke
It's been claimed that 85% of people over 65 couldn't write a check for $600 above their monthly expenses; they do not have the money. Wow! That implies that only 15% are anywhere near financial independence. The reason why this occurs is that folk do not discipline themselves to save when they are young and continue all though their lives.
Financial independence is the results of thinking smart, spending smart and investing wisely:
Think smart concerning a credit card. The sole smart way to have a credit card is to clear it each month and since most individuals do not have that sort of discipline, the smart move to make is to have none at all. If you think that you need to have a credit card, get a paid up one after you save up the money. Cut up your ATM card and clear it and save 18% a year on interest.
Think intelligent about the cash you are spending to drive a new car. Let's say you purchase a new car every four or five years at $500 or $600 a month; why not drive a second hand car that you saved up and paid cash for and save $500 or $600 a month? You will say, "I like to drive a new car". OK, think about it: driving a new automobile could cost you a million dollars or more off your retirement; is it worth that to you, if so carry on.
Do not get suckered in on the same as cash: buy now and pay no interest or payments until next year. The reason this offer is formed is that firms know that the majority will not clear it in the cited time and then they can charge the back interest which can sometimes be a lot of cash, as much as 21.9%.
Invest cleverly; do your prpearation before you invest. Read some good books on financial investing and planning. The investing plan changes with the times so don't get stuck in yesterday's mode. Do not let brokers sucker you into investing into their products. Learn how to be your own broker. Listening to brokers has cost me thousands. There are plenty of financiers who are in the circle that send out monthly newsletters on sound investment; subscribe to one.
Save just $1,000 a year, invest it sensibly and be a millionaire when you are 65, if you start at age 25, and that's a lot better than broke at 65. Save $3,000 per year and invests it intelligently and have $5.8 million at retirement, if you start at age 25 and continue until 65.
The question is: how could an individual at 25 save a $1,000 a year while trying to make provision for a young family and make ends meet? A person and his wife who smoke could easily save 1K a year if they were willing to give up. If you're leasing an automobile, it is like throwing a $100 dollar bill out of the window every month; don't and save at least 1k a year. There are plenty of ways to cut down on unnecessary spending in order to save a $1,000 a year. Be smart and work out the solution.
You may well think this is a hard way to have financial independence, but it isn't that hard at all; it just takes determination and a little brain power. Also read my article on, "10 proven steps to money freedom."
Conclusion:
Financial freedom is great; I should really know because I have it, but I might be remiss if I did not also tell you that it is only part of experiencing complete liberty. Financial freedom is the material part of life. There is. Another kind of liberty called spiritual liberty. It's the liberty that frees man from the penalty of sin and secures his spiritual future. The Bible claims that, "The wages of sin is death", Romans 3:23b. Death is separation; physical death is a separation of the soul and spirit from the body while spiritual death is the separation of the spirit of man from God.
This is an amazing thought; Spiritual death means a unending separation from God, his love, his peace and joyour love ones and friends for all eternity; a loneness that never ends. Spiritual freedom means the opposite; it means being with The Lord God, his love, peace and joy, friends and loved ones for all eternity. Learn how to have spiritual freedom.
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