Saving for a stormy day is the key to Money 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 objective is to be free monetarily and most people by the time they reach retirement are anything but free monetarily; in truth the statistics are gloomy to say the least. Here is how it stacks up:
Financial standing of those reaching 65 and retirement age:
– 1% will be wealthy
– 4%will have financial freedom
– 41% may continue to have to work
– 54% will be broke
It’s been said that 85% of folks over 65 couldn’t write a check for $600 above their monthly daily expenses; they just do not have the money. Wow! That means that only 15% are anywhere near financial liberty. The explanation why this occurs is that people do not discipline themselves to save when they are young and continue throughout their lives.
Financial independence 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 pay it off every month and since the majority of people don’t have that kind of discipline, the smart thing to do 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 pay it off and save up to 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 why this offer is made is that companies know that most people will not clear it in the mentioned time and then they can charge the back interest which can on occasion be a whole 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 wisely and be a millionaire by the time you are 65, if you start at age 25, and that may be a lot better than broke at 65. Save $3,000 each year and invests it sensibly 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 think this is a hard way to have financial liberty, nevertheless it isn’t that hard at all; it just takes doggedness and a little brain power. Also read my article on, “10 proven steps to fiscal freedom.”
Conclusion:
Financial liberty is great; I should know because I have it, but I’d be remiss if I didn’t also tell you it is only part of experiencing complete freedom. Financial liberty is the material part of life. There is. Another sort of freedom 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 essence of man from God.
This is an astounding thought; Religious death means an eternal separation from God, his love, his peace and joyour love ones and chums for all perpetuity; a loneness that never ends. Religious liberty means the opposite; it implies being with The Lord God, his love, peace and joy, chums and family and friends for all perpetuity. Find out how to have religious liberty.
Jimmie Burroughs is an inspirational speaker and autho who has been involved in teaching Christian Private Development for more than 30 years. He’s a dedicated believer in Jesus Christ and considers helping people his calling in life. His website contains over 600 articles on preparing yourself for success thru private development and those things that go with personal development.