Sow The Seeds For Your Financial Freedom
They say that up to 95% of Americans are not ready for retirement at age 65
. That is, they don't have enough investments to live on, enough income to live according to their accustomed manner.
It's no surprise to you that we're in an economic turmoil right now. We're certainly in a recession, and what some people are calling a depression-it depends where you are on that. But the theory is that if a person's lost their job, they're struggling, they're scrambling, they think it's a depression no matter what you think.
But there are a lot of people for whom things haven't changed much. There are a lot of people for whom things are better...as I write this, I was just speaking with some yesterday. And there are other people who are doing things that they should have been doing all along. They're beginning to save and invest.
Savings actually are up as a percentage of household income. Well, I don't want to say that they waited 'til the raindrops were already hitting the windshield before they began to do what they should've been doing all along-what they should have been doing all their life.
This one simple thing comes straight from the precepts taught in The Richest Man in Babylon, which is definitely part of our financial literacy curriculum.
They should've been taking a portion of their income, 10% to 30%, and setting it aside in investments all their life, so that they wouldn't find themselves all of a sudden in the critical condition where now they realize they've got to put some aside for a rainy day.
Well, I don't want to say they misused credit, but they probably did. It's so easy to do... it's what all the other lemmings are doing, right? So what they're doing is good. What they're doing is the right thing for right now.
What we are noting is that this is a good philosophy to adopt throughout all your life. The sooner you adopt this and start setting money aside, the sooner you can begin to benefit from the incredible magic of compounding interest. You can sow the seeds for your future financial freedom.
And if, by the way, some investments tank, diversification always has another opportunity for you.
by: Ted Ciuba
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