Winning The Game To Financial Freedom
Keywords: financial, analyst, debt, management, millionaire, planning, finance, credit, tools, money, invest, help, retire
According to the statistics shared by Mike Peterson, co-founder of The American Credit Foundation and author of “Reality Millionaire: Proven Tips to Retire Rich,” most Americans are losing the money-making game. Take 100 people at age 20 and fast forward them to retirement. Only five percent of them will be financially okay. That’s not even ‘great’ or ‘independent’, just okay.
“There are different levels to financial freedom,” says Peterson. “The first level of financial freedom is when you decide to take control of your finances. Let’s take another step, at the point that you manage your finances and income so you’re no longer in the red, but actually have a little money left over at the end of every month. Eventually we get to what I call ultimate financial freedom. I define that as, where you have enough money put away in investments that are spinning off enough of an income for you that you no longer have to go to work.”
Financial knowledge is the key to success. Researching all the financial information available is a must to becoming educated in building wealth. People are responsible for learning all there is to know about finances, preventing money blunders and financial difficulties. There is no excuse for financial ignorance; the resources are out there for all to take advantage of.
Peterson developed a tool anyone can use to start on the road to financial education and freedom. It assists people in being proactive about where they want to be financially and how to reach the wanted results. The game assists people in developing ideas and goals, bringing the closer to financial success, one round at a time. It is an organized, workable tool anyone can implement.
Round 1 presents the challenge of determining where you want to be financially. The most important aspect of this round is setting goals for the future. Writing down these goals brings you one step closer to the financial freedom you have wished for.
Round 2 involves becoming aware of where your money goes each month. Track expenses for at least 30 days, writing down everything you spend, no matter how insignificant you think it may be. Continue to spend your money on all the usual items for the entire month. This will give you an accurate account of where exactly you spend your income. Once you chart where the money was spent, you can develop a plan for saving money in the future, eliminating spending on unnecessary items.
Round 2.5 involves developing a whole new way of looking at finances. It is no longer about looking at monthly statements, but seeing money issues with regard to years in the future. This is very difficult to do when trying to make ends meet month to month, but it is essential to finding financial success. Take a good look into the years ahead, changing your mindset to becoming future oriented.
Round 3 is very important. This is where you take charge of your debt, developing a program to eliminate the debt you have accumulated. The most important rule to live by is to never charge more on credit cards than you can pay back in the same month. If this rule is not followed, winning your way to financial freedom will be a hard road. Obviously, there are some exceptions to this rule, such as a mortgage and car payment. Even with this type of debt, try to keep it reasonable. Decide on what type of car or house you need without becoming exorbitant.
Round 4 delves into how to make money with the money you have. Most people who are financially independent are investing their money in various monetary ventures. It all depends upon interest rates, how stocks earn money, the workings of mutual funds, and how to use them to your advantage.
Round 5 also deals with investments. Make sure your assets are invested in IRA’s or 401k. Fit these investments into the goals you set in round 1. Decide upon how much you want to risk in these investments. Make sure your assets are allocated so if something negative happens in the market, your finances will be covered.
Round 6 explains how to go about investing. It helps you decide where to invest your money and all the different options available. This round educates you on the difference between personal IRA’s, Roth, and 401k. As the market fluctuates, you can determine the investment possibilities; which investments are less of a risk.
Round 7 deals with investing beyond the IRA. Determine the next step to bring you closer to your financial goal. At this point, a financial planner may be needed to help you make appropriate financial decisions. Financial planning is an important resource, bringing you closer to your dreams of financial freedom.
Round 8 repeats the process of tracking your expenses and rebalancing your investments. The market is changing all the time. The risks you were concerned about before may be different now. Keep the fundamentals in mind, weighing the financial risks and rebalancing your investment portfolio to keep your future safe. Make proactive choices annually, keeping your investments risk free.
Round 9 is actually a recap of the first eight rounds. You now know what to look for and how to go about becoming financially literate and successful. It is all about repeating these steps over and over again to stay on the right track to your financial goals.
People are playing the financial game every day, whether they realize it or not. The key is to become aware there is a money game going on. Be proactive, following the nine rounds to financial freedom. Take control of your financial situation, persevere through the nine rounds and you can win the game, gaining financial security for the future.
‘Dr. Proactive’ Randy Gilbert enjoyed learning from Mike Peterson on “Inside Wealth Success” hosted by Jay Aaron. Find out more financial strategies from Mike at www.RealityMillionaire.com
Previous Articles Highlighter:
Spelling Games: A Fun And Easy Way To Learn (1)
Peter Woronoff with partners, Doug O'Brien, personally designated by Tony Robbins as an NLP Master Trainer, and Rob Marton, he has designed www.spellinglab.com to teach 3rd graders a fun and easy way to spell.
Ski Vacation Packages Perfect For Family Getaways (2)
No matter how you find the family ski destination, be sure to carefully look at the website for the resort before you take that final step in booking the package.
Technical Jobs In The Middle East (3)
Many agencies even have close to 25000 employers in their repository and more than a million job seekers registered with them! This large reserve of contacts enables them to cater to all job requirements in the Middle East.
Choosing Wood Blinds For Your Home: A Room By Room Guide (4)
You can have a different style of wood blinds in each room of your home, and still be at the height of interior fashion. Take a look at this room by room guide which our interior design experts have put together for you, in an effort to help make the process of choosing wood blinds for your home that much easier.
Three Budget Essentials For Your Growing Business (5)
His wife is starting to feel like she is married to a total stranger; and he has been eating reheated food for a year now. He has been so busy minding the store; he has let his family down.
Pets With A New Baby At Home (6)
Some new parents have prepared their house for the homecoming, and the pet already knows where they stand and how everyone feels about them. If a inside pet has been introduced to small children in the home, they are able to recognize that the new baby is not a threat.
Choosing The Right Clothing For Fishing Trips (7)
Some people that fish fail to use common sense in choosing the right clothing when they fish. They do not take the time to dress for the amount of humidity in the air and are upset when they have to end a fishing trip early because they can not bear to sweat anymore.
Uses For Eco Friendly Handbags (8)
Some people might wonder what ever possessed these designers to take that route to create their handbag designs. Most people would not think that woven hemp could be beautiful and they are simply amazed to find out how wrong they were.
When To Use Incorporation Services If You Are Going Into Business Yourself (9)
The fact of the matter is that sometimes people who have great ideas for a product or service have absolutely no common sense when it comes to the nuts and bolts of setting up a company properly.
VoIP Phone Companies - What Are The Most Popular Voice Over IP Companies? (10)
SunRocket SunRocket is a VoIP provider established by Paul Erickson and Joyce Dorris in early 2004. These two former MCI executives were coworkers for over 10 years prior to founding SunRocket.
Newer Articles Highlighter:
Why Start A Study Group? (1)
If all members of the group accept the terms of belonging to the group, you're all set to go. If there's some discord then you need to either negotiate on some points, or have 2 study groups form on different formats so that each student is comfortable with the group they belong to.
Why You Should Read To Your Kids (2)
Doing this won't only increase his confidence in reading but increase his chances of a good academic experience because of his ability to read well. Jane Saeman runs an In-Home Tutoring Service called Aim High Tutors.
Remortgaging When Your Credit Score Is Poor (3)
You can use the funds to finance a variety of needs such as the expenses necessary for your child's education, or a renovating plan which you intend to perform on your house.
Tips On Having An Enjoyable Travel Experience (4)
Traveling by plane may be faster. But once you reach your destination, you will have to hire a taxi to move around in. If you are taking your own car this will not be an issue.
Creating Multiple Profits To Increase Your Net Worth (5)
Branching out can mean multiple profits for you with relatively no work involved. Scott White is a certified personal trainer and nutritionist located in Scottsdale, Arizona. For more information about nutrition and fitness, reach Scott at: www.seotutorialprogram.com www.personalloanprogram.com www.healthycookingvideos.com
When Car Insurance Is Your Friend (6)
When getting a car insurance policy, check out the different types offered. Find a policy that will cover you for a wide variety of contingencies. You can buy several policies together.
Using Market Analysis To Create More Profits (7)
In the most basic terms, a market analysis is an assessment of: - A particular problem or opportunity in a market. - The needs of the target market relating to the problem or opportunity.
How To Build The Right Online Business Mindset For Day-job Employees (8)
Come back tomorrow and you are still at work. It can be tough at times when you build an online home based business while still working - not only in terms of consistently getting the income but also in terms of giving attention to your business.
Thoroughly Investigating The Personal Loan (9)
Before you take out a personal loan, ensure that you are financially sound enough to pay it off. Remember that defaults here will give you a bad credit score, making you ineligible for loans in the future.
Are You Killing Your Houseplants With Kindness? (10)
Keywords: houseplants, plants, gardens, gardening, fertilizer Possibly one of the key elements involved in houseplants health and success is an element taken for granted. All soil or potting mediums are not created equal.