I am going to answer the ONE question that I get asked ALL THE TIME as a financial advisor! What is financial freedom exactly? Some people call it retiring early. Others call it being a multi-millionaire! Most people shoot for a financial goal without actually understanding what and where this goal is.
I explore the concept of FIRE: Financial Independent Retire Early. If you want to achieve FIRE, do you know how much you need to retire early? Because the best time to start saving is YESTERDAY!
- What is financial freedom?
- How much do you need to save to be financially free?
- Most people shoot for a financial goal without actually understanding what and where this goal is.
- The simple and general rule of thumb to calculate what you need to save:
- Where do you live?
- Take your monthly expenses x 300
- Meditate on the number you need
- Work out how you are going to save more of your money!
- The rule of thumb helps you point out your direction of where you are currently going.
- Your income and savings must beat inflation and the rate at which you spend.
- When you know the value, you are able to readjust your thinking.
- Your reticular activating system starts looking for ways to find and create money.
- We need TIME to make our money grow and maximise interest – free money!
- It is realistically impossible to just save money for retirement. You have to INVEST.
- The reality is almost none of us have enough money to retire. Only 6% of the population will be able to keep their standard of living in retirement.
- The best time to start saving is YESTERDAY!
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