How you can retire at millionaire status
Let me start out with a little background.
For several years now I have looked to no avail for some way to improve my financial position.
This is a copulation of things I have learned from many different failures that taught me the right way to do it.
Real wealth is not hard to acquire, it is in fact, very easy.
The following are the simple concepts that when followed by any young person will allow you to retire a millionaire. If your not so young you can still retire much better off then you may think.
Concept 1 Its MY PADAY.
This is very simple if you are like most you work 40 hours a week get paid and pay bills until you have no money left.(am Iclose?)
What about you? You deserve some money right?
Meet Joe he works his 80 every two weeks takes home a check and lives payday to payday like most of us with nothing saved for later.
lets just say Joe makes $12 per hour .
Each day If Joe takes one hour of his earnings $12
in 10 days (two weeks)that is $12 * 10 $120
Now we have $120 divide that by 2 $60.
If Joe puts $60 in savings in case of emergency and $60 into an IRA (individual retirement account) Now lets say Joe is 25 and plans to work until 67. He has 42 years to work. Now I know this is not exact math but it will make my point.
26 paydays a year at $60 each pay day = $1,560.
$1,560 a year for 42 years = $65,520.
So Joe now has at age 67 $65,520 in his IRA and $65520 savings for a total of $131,040
But wait IRAs pay interest. lets say 3% 65520 + 3% = 67485 so now we have $133,005
Now in this example Joe has a 401k plan and is putting 5% to 10% into that as well so as you add the two it starts8 looking real good for Joe.
Now this is a very Conservative look. What are the chances you will stay at the $12 mark for 42 years? As you progress and make more money the total will go up faster than you can believe. Go ahead and do the math at say $20 an hour. Ok go ahead and say I'm crazy you cant afford this but before you loose your mind read the next concept It will show you how to do this one without even feeling it. Really.
Concept 2 I never knew.
Now on two what may be some of the greatest unrealized information ever found. Most people don't know this, I guarantee it.
I know now I sound crazy. But it is kind of true. We are bombarded with ads each and every day with one and only one
purpose. What purpose you ask?
To separate you from your money simple as that.
Here's how we fight back and help our selves.
We're going to talk about Joe again.
Joe gets up every morning gets ready for work. He likes to sleep as late as he can so he just has time to shower and shine
That being said he stops each morning on the way to work for coffee and he likes good coffee so he pays $3 for it. Now fast
forward to morning break Joe is needing a snack, after all, he skipped breakfast. So to the vending machine he goes for a $1
candy bar. Fast forward again to lunch. Joe has bills he tries to be responsible so he goes to the local fast food joint
and orders from the dollar menu. Burger, fries,drink another $3. Fast forward again its 2:30 he has a few more hours to
work but needs an afternoon boost. Back to the vending machine for a $2 energy drink.
Now its time to go home after the long day Joe says lets get a cold one to go with supper so he stops and picks up a beer
about another $3. This is Joe's daily routine. Lets take a look shall we. 3+1+3+2+3 I've been out of school a long time
but I think that would be $12 each day. What to do?
First, 12 x 5 = 60, $60 a week now lets see what if Joe gets up 30 minutes earlier buys a travel mug buys a pound of
coffee and makes a pot each day the pound of coffee should cost maybe $8 for good stuff, and should last 4 weeks that's $2
a week. He now has time for a little exercise that's always good, and he can eat a healthy breakfast like instant oatmeal
very low cost. Buy a pack of lunch meat lets say $5 bucks, baggies to pack the lunch in $3,A box of candy bars and a box of
energy bars $7, a big bag of chips(take some each day for the week)$3, now he is at $20 for the week.
He now has $40 extra a week,40 x 4= $160 a month that he can save or use to replace what he put in savings following concept 1.
This long winded example is to get your attention in hopes you will do this before you tell me i'm crazy and stop listening.
A simple exercise to follow. This will take some time and will be very fun in the end.
You will need a small note pad that will fit in a pocket.
For 5 days you will write down every penny you spend in that notebook skip your days off we will address that later.
You will find that the story above is only a scratch you spend a lot more than Joe if you are like most people.
Now after the 5 days set down and figure out how to do what the fictional Joe just did and reduce what you spend as much as you can. Use the Notebook one more week with the new routine you may find much bigger money than Joe did. You don't need to give up every thing you enjoy just find better ways to enjoy it.
I won't waste time with ideas for you . I will assume you can do this your self.
Concept 3 s.m.p.Balance.
Spiritual, Mental, Physical.
This one is short. The three areas above are all interconnected in more ways than I could ever figure out let alone write about. I will say this from my own experience I had to learn less focus. That's right I said less focus.
When I start to work on anything I forget every thing else proper diet,sleep,exercise, in the old days I would have spent 15 hours trying to write this all at once. Of course I had not figured this stuff out so would never have written it. With trying to improve my life nothing worked until I found balance. I now work a full time job I take at least 1 hour a day to devote to exercise I spend about 30 minutes of quiet time Talking to god before I sleep about 1 hour writing as well as always taking time for my wife and kids , and I make sure I sleep enough. In short by keeping these three in balance I have the energy to do the things I need to do the clarity to do them well and I feel good about doing them. Without balance every thing will be a struggle no matter how well planned.
Concept 4 Automation
But first I said in concept 2 I would cover days off later. Here goes.
On days off we spend money. It is human nature and we need it but you can watch how you spend I will give one example then leave it to you to find others. I mentioned exercise several times well I could buy a gym membership it would cost over a $100 a month for my family instead we pay $165 every three months for a membership at our local rec center. We can swim set in a hot tub run,walk,workout as much as we want. My point is this, my wife and I will sometimes take an hour to sit in a hot tub and just relax and talk extra cost $0 on weekends the whole family will swim several hours extra cost $0 ,shoot hoops extra cost $0. I cant stop my self so a little more. We want a movie we go to the morning shows for $5 instead of $8, we take free tours that is way more fun then you may first think and you get free samples of products, we do many more things that bring us together as a family and are easy on the wallet or purse. I am confident you can find many of them as well.
Back to automation. Very simple but can be tricky to do. One of the biggest things that mess up balance is stress so we need to get rid of it. I know about juggling bills sometimes there just is not enough to pay them as they show up. But as much as possible set the bills up on auto pay that will take time to get set up but as it happens the stress and the fights over money will disappear. I would also suggest reading a book or two on how to not sweat the small stuff.
In conclusion I want to say a few things about stuff I did not mention, and a few things about this article.
This article only scratches the surface.
my goal here is to get your juices going thinking about the steps I outlined. You know yourself far better than any one else.
Once you start you will find ways to make it all work for you. So good luck.
One thing you may have noticed is that the numbers we talked about were not a million dollars.I worked with very conservative numbers to keep the math simple. Most people reading this can work with better wages than our fictional Joe.
Here is one of the things you can do to start looking go to http://www.savingsbonds.gov/ You can invest for as little as $50 a month and have it automated like your savings deposit.
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