Life Long Financial Planning Habits
You should start financial planning as soon as you get your first pay check in your career. How well you manage your assets daily can allow you to eventually create financial freedom, security and peace of mind in nine years or less so that you never have to work hard again. Your daily attention on your objective of becoming financially free and secure should be reinforced with an effective money management system. You can divide your income into six portions either physically at home with a journal, a calculator and containers or virtually online. You should make the daily ritual of developing a budget and starting to save into habit that is much more important than the amount. You manage the money you have no matter how much it is such as 10 cents, or one dollar, ten dollars, hundreds or thousands of dollars, etc. In theory, you could split your money up into six different percentage amounts. Try to use about 55% of your income to pay bills for rent, food, gas, etc., 10% to create the emergency rainy-day fund for a car or some other big-ticket items, 10% to invest on passive income streams, 10% to buy books, courses, mentoring, coaching, etc. to educate yourself, 5% to give to charities, and then finally 10% to pay for leisurely expenses including massage therapy treatment sessions, sports, movies, general activity and entertainment to nurture yourself! Thus, you should save at least 45% of your income. You need to save a lot to be financially prepared for future opportunities. You should first get a credit card to build your credit history and scores by paying off the balance every month. While it may take you months or even years to prepare for your opportunities, you should save your money in accounts that offer you higher interest yields without taxes, flexibility and security protection at the same time.
Make the Most out of Your Savings Plans
You need to make your money work hard for you since the first day you set up the savings accounts no matter how much you take home. Bank checking accounts can offer you only free convenient direct deposit and payment services. You can move your money into and out of your checking account freely, but you probably earn little interest on your money in the bank. You get a little bit more interest with Certificates of Deposit (CDs), but the CDs are not flexible or your interest earned will be taxed. Mutual funds in your individual retirement account will lock up your money for years until you are older than 59 and a half and taxation can cut your real amount down. The employer matches in your 401K plans seem to be better than your own individual retirement plans; however, the balance in your 401K plan over the years could lose values in the market downturns. It is never a good idea to bet your savings in the stock markets if you are not careful. Now, you have better special savings plans than your parents did more than ten years ago. These new normal savings plans give you more benefits: flexible, higher and more secured gain without taxes at the same time. You control your flexible savings, spending and taxation like your own family bank. Your predictable accessible cash flow is built by leveraging your own small amount of money on a strong new normal foundation. After setting up your plan, you simply rotate your savings among the accounts. You save about the same amount of money you have to pay your loan and credit card bills with into the plan first. Then, after a few months, you start taking loans out of your plan to pay your bills. Your plan is still considered you have that amount of money in your account. Your savings in your plan starts to collect interests. As you continue with the rotation of your money into and out of your accounts, your total account balance gradually accumulates more and more interest. A few more dollars per month can add up to big retirement savings over time. The interest you gain through the plan helps pay off your other real loans sooner in nine years or less and thus cut your other real loan interest significantly as shown in this video.
Your New Normal Family Bank
In summary, it is in your best interest to make the most out of your savings by simply rotating smaller amount of your savings to resolve your larger amount of debts in shorter time with your family bank. In this way, you can turn your retirement plan into a guaranteed income for life! Even though you can afford to pay cash in purchasing large properties, you should first move your money through your plans to earn more anyway. You can own your dream home free and clear with your plan without worrying about taxation, foreclosure, predatory lending, etc. You can empower yourself to take charge and create the future you deserve such that you can meet your specific long-term financial goals of retirement income and medical coverage with your new normal plans perfectly holding your Individual Retirement Account rolled over by your 70th birthday without buying yourself too much landlord burden to enjoy a worry-free retirement as defined by Internal Revenue Code. Don’t leave money on the table! We can show you how.