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| July 2006 | ||
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Declare Financial Independence
July is a month where we celebrate our independence as a country and the personal freedoms we all enjoy. However, not everyone has declared financial independence. How do you do that? The single biggest issue preventing people from being financially independent is debt. Not so much a home mortgage, but credit cards and other loans. Credit card debt redirects your cash flow from your investments (which increase your net worth) to the credit card companies. It all boils down to living below your means. If you spend more than you make, you will never be financially independent. This issue affects those of all income levels. In fact, most of the people I see who live above their means make so much money they feel they "don't have to worry about ever running out of money." They are often mistaken. Once you have control over your spending, the strategy becomes simple. Accumulate enough assets that will generate an income level that will be sustainable for the rest of your life. The more expensive the lifestyle you desire, the more you will have to accumulate. The goal is to get to a point where you will not have to rely on anyone else or a job to provide you the desired standard of living. Easier said than done? Maybe. It all comes down to three basic rules of thumb. First, make as much money as you can. Second, spend as little as you can. Finally, save as much as you can. The better you are about these three rules of thumb, the more likely you will achieve financial independence. Brian Watson, CFP Securities Offered Through ValMark Securities, Inc. Member NASD/SIPC. ValMark and Koss Olinger are separate entities.
Prosperity Partners, Inc.
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| © 2006 Prosperity Partners | |
Electronic newsletter design and publication by IlluminAge Communication Partners |
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