Quote:
Originally Posted by Vegas69
That's why setting goals with a real game plan is so crucial. Most don't set written goals, let alone with a real plan of action. In this case, long term financial goals. "I want to be rich" How? What books are you going to read, what voice of value are you going to use to form your philosophy, what vehicles are you going to use?
It doesn't have to be real taxing either. Once you set a goal and put the game plan together, get a majority of it on auto pilot.
For instance:
My IRA & Life Insurance deposits are auto withdrawn.
The money I invest monthly into stocks is automatically transferred into Scottrade on the 15th. I just need to do some research and trade.
My rental mortgage payments are on auto withdrawal with the additional principal paid to pay them off in 15 years.
My primary residence payment is on auto withdrawal with additional principal to pay it off in just over 15.
I have a spreadsheet that breaks my budget down to replacing cars, clothes, and on down the line and includes net worth. I know approximately how much my net worth gains EVERY MONTH. Clearly, the additional funds have to be available to invest aggressively enough to achieve financial independence. That means you must live well below your income. If you don't, get into a more economical situation, pay off debts, or work harder. Even if you are living below your means, if you wish to achieve your goals faster, that may mean a move down in financial lifestyle. It's not going to take care of itself.
The key is to break it down. If you need $2,000,000 to retire, that seems like a daunting number. When you break it down to a monthly budget, it seems more manageable.
"Invest your money and spend what's left"
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A written plan and sticking to it. Once people see that they're on their way to actually doing something --- they'll get better and better at it.
Here's my question to anyone. If you can't live on what you're making NOW.... how do you suppose your life will be when you're not working at all? So that law of "averages" comes back into play. Better to have a nice long AVERAGE lifestyle all the way until you die - than to live like a baller now and a pauper later.
The key is to get started EARLY so the compounding can start to take affect.