6 tips to afford life now and retiring young.
A Money Rebel defined.
Young (adjective yung) - being in an early period of life
or growth.
Money (adjective muhn-ee) - legal tender.
Rebel (noun reb-uhl) ' a person that exhibits independence
in thought and action.
The need to be a young money rebel.
The latest reports show that the average person today is in
poor financial shape. They may not be going bankrupt or
having their home foreclosed on just yet; however during
these uncertain economic times with rising oil prices and
the problems in the credit market many people are barely
getting by.
Unfortunately many people are living paycheck to paycheck,
are experiencing the stress associated with debt and are
often struggling to get out of grim financial
circumstances. Most of these same people share a similar
goal ' to experience financial freedom - but fall into the
traps plaguing so many people as shown in the examples
below.
-62% of graduates expect to have a student loan debt
averaging $27,236 ($101 billion nationally) and requiring
7.9 years to pay off. (Student Monitor)
-The American public has been spending more money than it
has earned after taxes since April 2005. (U.S. Commerce
Department)
-Some 40 percent of Americans are counting on the lottery,
sweepstakes, getting married, or an inheritance to fund
their retirement. (Were Not In Kansas Anymore)
-Household debt in 2007 is at record high levels relative
to disposable income. (Federal Reserve)
-Polls show that students (ages 15-21) feel unprepared to
face the complex world of the 21st Century (American Dream
Education Campaign)
Young money rebels avoid those traps.
Young money rebels, on the other hand, are able to avoid
debt traps, have money saved and are able to experience the
feeling of financial security at a young age. They have
money to live life to the fullest now while building
long-term wealth so they can retire young.
A young money rebel does not follow the norms society sets
when it comes to the handling of money and their personal
finances. They have a working budget, keep their spending
in check, are knowledgeable about personal finance, and
follow a consist investment plan.
A young money rebel understands that by investing at an
early age they have a huge advantage. Young money rebels
have compounding interest working in their favor. With
compounding interest the earlier you start investing, the
greater potential growth of your money. That is why
investing just $100 a month starting at age 18, and earning
the S&P 500 average return, will make you a millionaire
well before retirement age.
Young money rebels achieve financial freedom.
Anyone looking to achieve financial freedom should become a
young money rebel. This will give you more free time, the
ability to live the lifestyle of your dreams and avoid the
stress associated with living like most people do ' with
financial worries and stress.
Today it is more important than ever you do achieve
financial freedom. The large reduction in pension plans
and the uncertainty of social security means that young
adults today will need to be prepared to self fund their
own retirement. You will need to save and invest your own
money because the programs benefiting our parents will not
be around when we retire.
How to become a young money rebel.
There are simple steps you can take to fully enjoying life
by securing your financial future at a young age. Below
are six steps that will get you on the path to becoming a
young money rebel.
1) Educate yourself. Most schools do not teach practical
money skills so it is up to you. The good news is that
there are plenty of resources available for people looking
to take charge of their finances. Set aside 30 minute a
night to learning everything you can about personal
finances and you will be able to afford what you want now
while securing your financial future.
2) Financial goals. What motivates you? Is it a big home
steps away from the beach, a year off to travel the world
or is it just having enough free time to spend with loved
ones? It is your choice how you want to live life; so take
some time to think about it. You may not know exactly what
you want but you probably will have a general idea. So
write down financial goals that will encourage you to
achieve your dreams.
3) Team. Building a team of trusted advisors will be an
important part in achieving success as a young money rebel.
Your team should include a trusted tax advisor, financial
mentor, and personal growth coaches.
4) Financial plan. Develop a step-by-step financial plan so
you can achieve your life goals. Write down how much you
are going to save each month, where you will invest your
money and your desired results.
5) Saving. A savings plan is the backbone to your financial
success; so start immediately. Talk to your bank about
automating your savings plan so every time you deposit
money a portion of that is automatically transferred to
your savings account.
6) Investing consistency. A consistent investing plan will
lead to long-term wealth and financial freedom. Just like
your savings plan you can automate your investments so they
are made automatically for every month. It takes an hour
to set up then all you have to do is check your statements
from time to time.
By learning simple, practical money skills you will have
taken the first step to becoming a young money rebel and
enjoying life free from the financial worries that plague
so many people.
----------------------------------------------------
Vince Shorb, the leading young adult financial literacy
expert, prepares young adults for the financial real world.
His course 'Financially Free by 30' is the first
interactive, multi-media curriculum designed specifically
for high school and college-age clients. Get your free copy
of his latest book and instructional videos at
http://www.FreeBy30.com .
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