The Simplest Way To Be Free Financially By Retirement
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 needed; that way everyone could have financial liberty, nonetheless it does not work that way; it takes a little planning and some incentive to have a sufficient retirement. It’s not about making money but about having enough to live as you need when you retire. It has been proved that cash above and beyond what’s needed to live at a desired level adds little or no satisfaction.
The objective is to be free monetarily and the majority by the time they reach retirement are anything apart from free financially; in truth the statistical data are gloomy to say the least. Here is how it stacks up:
Financial status of those reaching 65 and retirement age:
- 1% will be wealthy
- 4%will have financial liberty
- 41% may continue to have to work
- 54% will be broke
It’s been claimed that 85% of folk over 65 could not write a check for $600 above their monthly expenses; they simply don’t have the money. Wow! That suggests that only 15% are anywhere near financial freedom. The reason this happens is that people do not discipline themselves to save when they’re young and continue all though their lives.
Financial freedom is the results of thinking smart, spending smart and investing wisely:
Think smart concerning a credit card. The only smart way to own a credit card is to clear it each month and since the majority of people don’t have that sort of discipline, the smart move to make is to have none whatsoever. If you believe that you have to have a credit card, get a paid up one after you save up the cash. Cut up your credit card and clear it and save right up to 18% a year on interest.
Think smart about the cash you are spending to drive a new auto. Let’s imagine you purchase a new automobile every 4 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 car could cost a million bucks or more off your retirement; is it worth that to you, if so carry on.
Don’t get suckered in on the same as cash: buy now and pay no interest or payments till next year. The reason this offer is created is that corporations know that most people won’t pay it off in the specified 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 prep before you invest. Read some good books on finance investing and planning. The investing method changes with the times so do not get stuck in yesterday’s mode. Do not let brokers sucker you into investing into their products. Learn to be your own broker. Listening to brokers has cost me thousands. There are a lot of speculators who are in the circle that send out monthly newsletters on sound investment; subscribe to one.
Save just $1,000 a year, invest it wisely and be a millionaire by the point you are 65, if you begin at age 25, and that is 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 begin at age 25 and continue until 65.
The query is: how could somebody at 25 save a $1,000 a year while trying to provide for a young family and make ends meet? A person and his wife who smoke could easily save 1K a year if they were pleased to quit. If you are leasing an automobile, it is like throwing a $100 dollar bill out of the window each month; don’t and save at least 1k a year. There are many ways to scale back on unnecessary spending so as to save a $1,000 a year. Be smart and work out the solution.
You might think this is a tough way to have financial independence, nevertheless it isn’t that hard at all; it just takes determination and a little brain power. Also read my article on, “10 proved steps to fiscal freedom.”
Conclusion:
Financial independence is great; I ought to know because I have it, but I might be remiss if I didn’t also tell you that it is only part of experiencing complete freedom. Financial freedom is the material part of life. There is. Another kind of liberty called religious freedom. It is the freedom that frees man from the penalty of sin and secures his religious future. The Bible says that, “The salary of sin is death”, Romans 3:23b. Death is separation; physical death is a separation of the soul and spirit from the body while religious death is the separation of the spirit of man from God.
This is a mind boggling thought; Spiritual death means an endless separation from God, his love, his peace and joyour love ones and buddies for all perpetuity; a loneness that never ends. Spiritual freedom means the opposite; it means being with The Lord God, his love, peace and joy, friends and family and friends for all eternity. Find out how to have spiritual freedom.
Jimmie Burroughs is an inspiring speaker and autho who has been involved in teaching Christian Personal Development for at least 30 years. He’s a dedicated disciple of Jesus Christ and considers helping folks his calling in life. His website contains over 600 articles on preparing yourself for success through private development and those things that go with personal development.
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