Even though you may not realize it, you could earn a fortune
during your lifetime from earned income alone. For example, if you’re 35 and
earn $55,000 a year, over the next 30 years you could earn over $3.6 million.
$40,000 $55,000 $70,000
Per
Year Per Year Per Year
Age 35
$2,657,554 $3,654,137 $4,650,719
Age 45
$1,332,638 $1,818,627 $2,314,617
Age 55 $ 503,116
$ 692,784 $
880,452
These numbers tell you the amount of money you will earn, if
you work to age 65 and earn the stated amount above, assuming a 5% salary
increase each year. So the question
is, “What will you do with all the money you will earn in your lifetime”? You
really will earn a fortune.
Will you spend extravagantly? Will you be careful with how
you spend your fortune? Will you plan for the future, both short term and long
term? Do you have a Family Financial
Plan? Most people spend more time in a year planning for their Family Vacation
than they do planning their Family Finances.
What is real
Financial Planning anyway?
Simply put, Financial Planning is a method of identifying
and arranging financial priorities in such a way, that in the event of any
emergency, the Family’s Financial Resources will be Sufficient to respond to
the emergency, without jeopardizing the Family’s Financial Future.
An emergency can be one or more of a number of events. A few
examples are: A disability, a death, an extended illness, a nursing home stay,
automobile repair, major appliance repair or replacement, a family member
needing financial help, etc.
Proper planning and organization and living on a planned
budget will help you prepare for these financial emergencies. There are a number of roadblocks that
prevent individuals and families from being prepared financially for these
emergencies.
The first and most common roadblock to financial success is
not having any goals. An estimated 65 million American households will probably
not realize one or more of their major life goals.
How are you doing
on your financial goals? Do you have them?
Another roadblock is ignorance. Many people of all
educational levels lack a basic understanding of how the financial world works
and how to make their money grow. The
combination of time and money is powerful. Compound interest can have a
dramatic effect on your investments and savings.
The next roadblock is Debt, particularly credit card
debt. Never borrow for the sake of
buying unnecessary items. Many people don’t realize how much interest they pay,
because they pay in small increments over a long period of time. A $2,000 balance on a credit card at 18%
with a minimum payment will take you over 30 years to pay off and close to $5,000 in interest!
Other roadblocks to financial success include Inflation,
Taxes and Procrastination. All of these roadblocks need to be addressed in your
Family Financial Plan. The question you
need to answer is “What have I done to prepare for financial success, what am I
doing now, how often do I review my plan and when will I begin my family’s
plan?”
The Six Keys to Financial Success are:
1-Risk Management
2-Cash Management
3-Investment Planning
4-Tax Planning
5-Retirement Planning
6-Estate Planning
These areas will be reviewed and discussed in future
newsletter articles to assist you in your planning and goals. Everyone deserves to feel the joy of
knowing that financially all will be well in the event of any emergency. Do yourself and your family a favor
today.......set a goal to begin your
Family Financial Plan.
**********************************************************************
Scott L. Overstreet
Registered Financial Consultant
Visit Scott's Simple Joe Page @ http://www.simplejoe.com/scottoverstreet.htm
Back to the Articles Index Page.
Click here if you're interested in real estate investing.
Click here for other good books on accumulating wealth.
Check out other information on reducing your taxes.
View some investment planning ideas.
See our section of financial tools.
MSBJ Holdings LLC's editorial objective is to provide our readers with a forum for personal suggestions, investment ideas, and health & fitness recommendations. Our articles should not be construed as specific advice for the reader, nor does any article imply an endorsement by MSBJ Holdings LLC. Your best course of action must be based on your individual situation.
Great Book on Motivation
Sale$17.95
Printer Friendly Version
===============================================
