Family Financial Freedom. Floyd Saunders

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СКАЧАТЬ spending” you do. Of course as so many Americans have suffered from the financial meltdown of 2008, with job loses running in the millions and millions more losing their homes, discretionary spending has dropped for all but the very wealthy. But here is the thing you should know, you may be surprised by how much more money you actually have available for savings and investing, simply by making a few changes. Additionally, if you put time and consistency to your advantage you really only need to set aside a small amount each month. Just make a financially secure future one of your priorities. Treat yourself to financial freedom for your family. Remember, the key to financial freedom is not how much you make, but how much you keep.

      “I can’t look that far ahead.”

      If you fail to plan, you are probably planning to fail. Don’t be part of the 95 percent of Americans that plan to fail. Be part of the ‘smart” crowd that plans for their future - now.

      “I was never very good at understanding money.”

      I understand this one very well, by parents never even had a savings account, were always in debt and living from paycheck to paycheck. But I learned how to manage my money, and just as you learned how to earn money, you can also learn how to manage it to your benefit. It is a simple matter of learning a few basics of money management and then consistently applying those basics so that time can work for you and not against you.

      “If I’m lucky, I won’t have to think about my financial future.”

      No one is that lucky, well OK, you do have a one in at least 80 million chance of winning a million dollar lottery. Do your really like those odds? Too many people are waiting for someone or something to provide their financial security. Are you willing to take that gamble?

      Roadblocks to Financial Freedom

      One of the objectives of this book is to help you overcome the many roadblocks to financial freedom. These include:

      No Goals - Only a small percentage of the population is adequately prepared for retirement. When you have goals you start to move toward accomplishment of those goals, the path starts to become clear and you find ways to reach those goals. The need for goals cannot be overemphasized. You must overcome the belief that the future will take care of itself.

      Ignorance - Even the most intelligent person can be uninformed about how to make their money work harder than they do. You just need to have an understanding of the basic principles and concepts of how money management works to make informed decisions. The good news is anyone can do that.

      Debt - Excessive debt erodes your personal wealth, lowers your credit scores and hobbles your financial future. According to creditcards.com the average American has over $15,000 in credit card debt, holds at least three credit cards and pays on average 14.35% on the outstanding balances. Total U.S. consumer debt as of December 2011 was $2.498 trillion dollars. This includes credit card debt which increased 4.1 percent last year and debt for things like cars and education, which rose 11.8 percent. The trend is even more alarming, as the annual rate of increase in consumer debt is 7.5 percent. If you are like most Americans, a major contributor to debt are your credit cards, which can be defined as ”a means for buying something unneeded, at a price you can’t afford, with money you don’t have.” Stop already, cut up those cards and use cash.

      Poor Investments - The purpose of investments is to create more money for your future, to secure your financial freedom and to allow you make important purchases like a new home, education for your children and to have a secure retirement. Poor investments work in reverse, consuming your money and destroying your wealth. Beware of investments that promise everything. If it sounds too good to be true, it probably is.

      The Financial Planning Process

      Most people become better savers and investors by doing three things. First they set goals, second they get a financial education and third they start to apply what they have learned. By reading this book you are at least getting the start of a financial education. You may also want to read one or more of my other books, including ”Figuring Out Wall Street, Consumers Guide to Financial Markets”, it’s available from my web site:

       http://www.floydsaunders.com

       Amazon.com

       Barnes and Noble.com.

       and a number of other online booksellers.

      Once you have set your goals and learned at least the basics of personal finance, you can start to make sound financial decisions. This means knowing where to get information, how to use it and then making decisions. If you have the ability to earn money, the discipline to save it, and are willing to take some time and effort to plan for sound investments decisions, you and your family can become financially independent. And you can do it in any economic conditions. Planning for your financial future requires:

      1 Effort on your part

      2 Sound practical financial information

      3 Ability to apply proven concepts

      4 Willingness to seek the help of experts when necessary

      The process of financial planning requires you to do two additional things. First, learn how the economic environment affects your life, and second be concerned about your own personal financial plans such that you set goals, learn more and apply what you learn.

      Predicating what will happen with the economy is difficult even for professional economists. Ask the 25 leading economists for their forecast of the next year’s economic events and you will likely get 25 different opinions. Maybe even 26!

      Everyone wants to see a strong growing economy, but there are many forces currently work against affect your ability to prosper. As you plan your financial future, you should be concerned about:

       Jobs - employment drives the US economy and job growth is the key to an expanding economy. The unemployment numbers for the U.S. economy in 2011-12 have been staggering. More than 10 million Americans are officially unemployed, fully 8.6% of the workforce. The unofficial number is much more likely 50% higher, with as many as five million giving up looking or only working in part-time, temporary jobs. Keep an eye of these numbers as it affects your life.

       Inflation - Whatever the rate of inflation is, it erode the earnings and spending power of your dollar. You need to invest at a higher rate than inflation in order to get ahead.

       Taxes - Most of us work three hours a day, just to pay all of the taxes on our earnings. We have little control over increases in taxes, other than voting for elected officials willing to reduce our tax burden. Yet, many Americans pay less than their fair share in taxes, simply because they take advantage of every deduction, loophole and tax shelter available. You can do more to know how to save money on your taxes.

       Interest Rates - How much will changes in interest rates affect your plans? For example, as interest rates rise, the cost of a mortgage goes up and fewer people can qualify for loans. Then fewer homes are bought, so the government works to keep interest rates low on home mortgages. But credit cards can be a different story. The average interest rate on credit cards is more than 16%, check this web site: http://www.indexcreditcards.com/credit-card-rates-monitor/ to get more СКАЧАТЬ