When I was a kid, my Dad told me investing was for rich people. I love my Dad, but he was wrong. There were not the same tools available for small investors in his defense. I’m not a certified financial planner or CPA, but I have both in my address book. Thanks to my first boss, I learned about investing in my 20s and started investing in mutual funds. I wish I had taken the time to learn about real estate, but I didn’t until a few years ago.
Whatever your occupation, you make money, and you should have goals for your money. First, learn about various types of investing because the only way to make more money is to work harder or invest in assets that grow in value faster than inflation. Please, realize that the old days of working for 30 years and retiring from one company with a paycheck that will provide a comfortable living in your golden years are over; maxing out your 401k probably won’t do it. When I was planning for my kid’s education, it cost $60,000 for two kids to go to a state college for four years. No longer the case. You need a financial strategy for your life!
Financial Freedom is the objective! Providing for your future and all the things you want to do through passive investment income is possible. It takes some planning and discipline, but I and many others are examples. Financial strategies and philosophies are many and very individual, and it needs to adjust for the phases of your life and your risk tolerance. Financial planners do this, so interview a few and pick one. If none of this motivates you, understand that your kids will deal with money just like you do. Be a good example and set them up for success.
Here are a couple of bullets to get you started on some goals:
-Spending: Make a budget, live by it and keep spending in control.
-Saving: put away 10% until you have one year’s worth of expenses
-Investing: Put at least 10% into assets that grow in value, mutual funds, real estate, precious metals, high-quality life insurance vaults, and more. Put half of every pay raise into investment. Various investments have advantages during different economic circumstances, so make sure that’s in your strategy. I tell my kids to buy a real estate property every couple of years.
-Taxes- Taxes are the most significant expense you have over the length of your life. Use all the tax breaks for which you qualify. Get to know your CPA.
Money is a tool, not an objective. Use it to finance your goals and have a strategy to build wealth over your life. Financial Freedom is a realistic goal because “all things are possible through prayer and heavy deadlifts.” ™