It would be nice if money grew on trees and all we had to do is harvest what we needed but it dosen’t work that way; it takes some planning and some incentive on our part to have an adequate retirement. It is not about getting rich but about having enough to live as you want when you retire. It has been proven that money that we may have above what it takes to live as we want adds little or no satisifaction. It is about being financially free and most people by the time they reach retirement are anything but financially free; in fact the statistics are dismal to say the least. Here is how it stacks up:
OF THOSE REACHING 65, 1% WILL BE WEALHY, 4% WILL HAVE FINANCIAL FREEDOM, 41% WILL HAVE TO CONTINUE TO WORK,
54% WILL BE BROKE
I read an article that stated 85% of people over 65 could not write a check for $600 above their monthly living expenses because they simply do not have the money. The reason this happens is that people do not discipline themselves to save when they are young and continue throughout their lives.
Learning to save for a rainy day is a good idea
It doesn’t take that much: Save just $1,000 a year, invest it wisely and be a millionaire by the time you are 65 if you begin at age 25 and that is a lot better than broke at 65. Save $3,000 a year invest it wisely and have $5.8 million at retirement if you start at 25 and continue until 65.
How? By investing in good mutual funds. (I know this doesn’t seem to be a good suggestion right now, but over time it has proven to be the best wealth builder for the average person.) Read the prospectus and do your homework before you invest. Read some good books on financial investing and planning . There are a lot of investors who are in the know that send out monthly newsletters on sound investment; subscribe to one.
The question is: how could a person at 25 save a $1,000 a year while trying to provide for a young family and make ends meet. A man and his wife who smoke could easily save 1K a year if they were willing to quit. Leasing a car is like throwing a $100 dollar bill out the window every month; don’t and save at least 1k a year.
Lets say you buy a new car every four or five years at $500 or $600 a month; why not drive a used car that you saved up and paid cash for and save hundreds a month. You may say, “I like to drive a new car”. OK, think about it: driving a new car could cost you a million dollars or more off of your retirement; is it worth that to you, if so carry on. Cut up your credit card and pay it off and save up to 18% a year on interest. The only smart way to own a credit card is to pay it off each month and since most people don’t have that kind of discipline, it is better to have none. If you think you have to have a credit card, get a paid up one after you save up the money. Don’t 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 pay it off in the specified time and then they can charge the back interest which can be a whole lot of money, as much as 21.9%.
You may think this is a hard way to have financial freedom but it isn’t that hard at all; it just takes determination and a little brain power. If you want to start now to your financial freedom, here are the steps:
TEN PROVEN STEPS TO FINANCIAL FREEDOM
1. MAKE TITHING YOUR FIRST GOAL (This one is for Christians only)
Give, and it shall be given unto you; good measure, pressed down, and shaken
together, and running over, shall men give unto you. For with the same
measure that you give it shall be given to you again (Luke 6:38). Tithing has
always been God’s standard for giving; before the law, Gen. 14; during the law;
after the law, Mt. 23:23.
2. SAVE $1000 FOR EMERGENCIES.
75% of all families have a financial emergency on the average of at lease once
every ten years. Be prepared for it when it happens.
3. PAY OFF ALL DEBT EXCEPT HOME MORTGAGE.
Your home is one of the best investments you will ever make.
Plan to stay out of debt. Americans as an average carry a $11,670.00 debt,
mostly credit cards. Cut up your credit cards and save yourself up to 18% a
4. SAVE 3-6 MONTHS LIVING EXPENSES.
Most families experience a layoff sometime in their married life; nevertheless
most Americans live from paycheck to paycheck.
5. INVEST 10% TO 15% OR SAVE $1000 A YEAR FROM AGE 25 TO 65 AND
HAVE A $1,000,000 FOR RETIREMENT; SAVE $3000 A YEAR AND HAVE
$5,882,380 AT RETIREMENT. This can be done by investing in good mutual
Funds (results depend of course on investment strength). Read some good books
on investing and financial planning.
6. FUND YOUR KIDS OR GRANDKIDS EDUCATION.
This can be an income tax write off if set up right.
7. PLAN TO PAY OFF YOUR HOME MORTGAGE BEFORE RETIREMENT.
8. BUILD YOUR FINANCIAL LEGACY.
Help your family or finance your own charitable foundation.
9. QUIT BUYING THINGS THAT YOU DON‘T NEED. The difference in the way
people who have money spend their money verses those who don’t is that people
with money tend to purchase assets, things which appreciate, in contrast to those
who don’t have money who spend on worthless items .
10. CONSIDER STARTING AN ONLINE BUSINESS; you can start by working it part time.
In conclusion some things that need to be avoided if you are to find financial freedom as found in the Holy Bible.
Today Bill Gates is said to be one the richest men in the world. However the richest man in the history of the world is probably King Solomon of the Bible and he is also said to be the wisest man who ever lived. Actually Solomon has a writing on some things you want to avoid if you want financial freedom: it is found in Proverbs chapter 24 & 25.
PROVERBS 24:30-34 & 25:16
I went by the field of the slothful, and by the vineyard of the man void of
And, lo, it was all grown over with thorns, and nettles had covered the face
thereof, and the stone wall thereof was broken down.
Then I saw, and considered it well: I looked upon it, and received instruction.
Yet a little sleep, a little slumber, a little folding of the hands to sleep:
So shall thy poverty come as one that travelleth; and thy want as an armed man.
The sluggard is wiser in his own conceit than seven men that can render a
SIX THINGS ABOUT THIS SLOTHFUL MAN:
1. Not very smart
2. Lazy and does not get things done
3. Sloppy and lets things go in disrepair around him
4. Unconcerned and thinks things will be alright
5. Knows it all and no one can tell him anything
6. Consequently Impoverished – If you want a formula for poverty, this is about as good as it gets. Of course not everyone fits this senareo but some do.
(It is reported that finances is a leading cause of 90% of Divorces. Getting your
finances in order may save your marriage).