Financial independence is the moment when your investments start paying more than your expenses. Once that happens, youre free.

Free from havingto work for a living.

Free from having to worry about paying rent on time.

And free from a TON of other financial obligations.

BUT how long would it take the average American to become financially independent?

Assuming you earn $75,000 a yearandyour annual expenses are about $60,000, you need to save roughly $1,500,000 to become financially independent.

When youre done picking your jaw up off the floor, Ill let you in on the process of how to get there:

There are no slick tactics or sexy ways to go about this. If youre the average American who needs $1,500,000 to hit your FIRE goal, you need to work hard and be determined. But the feeling of freedom when you reach financial independence will make it all worth it.

Were using the $1,500,000 goal based on the average salary and living expenses of Americans. If you want to find a number more specific to YOUR situation though, youll have to use the 4% Rule.

The 4% Rule is known as the safe withdrawal rate,or the amount of expenses you should be able to withdraw from your savings each year when you retire without touching the principal. (This number is based on a study from Trinity University.)

Finding out your safe withdrawal rate is the first step to learning how to become financially independent.

So how do you find out how much you need to save? Do two things:

This will give you enough expenses to withdraw 4% for years and years to come.

Heres a handy chart to show you how much youll need to save based on possible yearly expenses.

Using the above information coupled with your annual after-tax income, youll be able to come up with an annual savings rate (i.e., how much you need to save each year).

Luckily, you dont have to strain too hard with back-of-the-napkin math to figure it out, as there are a bunch of retirement calculators online. This one is our favorite. It outlines exactly how many years itll take to save depending on your savings rate.

Play around with the calculator until youve come up with a savings rate that works for you. After that, youll know exactly how much you should be saving every time you get a paycheck.

In terms of the percentage, I suggest you save 65% of your after-tax income, says Mad Fientist. That may seem like a ton but its possible. I averaged around 75% to 80% when I was saving.

Meanwhile, Physician on FIRE suggests you should actually save about 50% of your income to go towards your goals.

When pursuing FIRE, PoF says, keep in mind that youre locking yourself into the same lifestyle as when you reach financial independence. [So] if youre making too many frugal choices that dont jive with your persona, start living the way you want to and base your FI target on that.

Remember our example using the average salary and expenses? Looking at the chart, we know now that the average American needs to save about $1,500,000 in order to retire early. Our savings rate will then be about 32% of our annual income each year in order to save enough money to retire early (well go into how long itll take later).

Everyone that goes for FI has to decide something important:Should you try to live as frugally and retire as early as possible and minimize your expenses, or would you rathertake part in the finer things in lifebut retire later?

Luckily, there are two communities that embrace FIRE in different ways that can help you decide.

Bonus: Struggling to take control of your expenses? Check out my Ultimate Guide to Personal Finance to learn how to automate your finances so you can reach financial independence sooner.

There are typically two schools of thought when it comes to financial independence: leanFIRE and fatFIRE.

Though they sound more like weight loss supplements or descriptions of my latest mixtapethan systems for financial independence, theres no need to be intimidated by them.

LeanFIRE and fatFIRE are just terms for how much you plan to live on when you retire, the Mad Fientist says. Theres no better way. Just test out your spending until you find a method that works for you.

While both have the same goal of achieving financial independence, aspects such as how much you spend, save, and even quality of life can be affected by which approach you choose.

leanFIRE

This approach requires you to have a low spending rate each year (typically less than $40,000/year).

To be leanFIRE is to subsist on a comparatively low level of spending much like most of us did in college, PoF says.

This means adopting a frugal lifestyle and sacrificing certain luxuries like cars. It can even determine the places in the world you can live in (its easier to live cheaply in Norman, Oklahoma, than NYC for instance).

On the other side of the coin, theres a FIRE movement that aims to keep up the benefits of financial independence while still retaining a life of semi-luxury: fatFIRE.

Bonus: A higher salary could help you reach financial independence sooner. Check out my huge free guide to salary negotiation to get the raise you deserve.

fatFIRE

FatFIRE is the system of financial independence that allows you to live a more high-class lifestyle. But it takes longer to complete.

FatFIRE is to be financially independent on a more typical level of spending, PoF says. Id say to qualify as fat, your anticipated spending should probably be somewhere north of the national average.

According to PoF, thatd be an annual spending rate of around at least $80,000. That lends itself nicely to a round number of $2 million saved to have a budget with a 4% annual withdrawal rate, he says.

This is the practice that PoF embraces and his reason might convince you to pursue the lifestyle as well.

Lets assume you dont want to sacrifice your $60,000-a-year lifestyle and want to save enough money to get there. Youll need a higher rate of saving AND earning to do that

which brings us to:

Do you know how long itll take you to save $1,500,000 on a salary of $73,000 and a savings rate of 34%?

More than 26 years.

Thats a long time, and if you want to retire early, you might not want to wait that long.

Luckily theres a way to DRASTICALLY shorten that time: Earning more money.

Earning more allows you to increase your savings AND speed up your financial independence goals. While there are a lot of ways to make more money, the best way is starting a side hustle.Its a big win.

Below are our resources that have helped thousands of readers start their side hustles:

To help you get started, today, I want to show you how to find a great side hustle idea. Its one of the biggest barriers preventing people from starting their own business and making extra income. You can find a great idea by answering four simple questions about your life:

Find an answer to those questions and youll be on the same path as thousands of our students who have found a profitable business idea.

Bonus: Need help coming up with a business idea? Click here to receive your very own PDF of 30 proven business ideas.

A lot of us tend to DREAD the idea of cutting costs and with good reason. Thoughts of not being able to go to your favorite fast food restaurant or your father yelling at you when you change the thermostat just a fraction of a degree often crop up.

Scrutinize and be conscious of your spending, he says. If you see a nice BMW you think you want consider one thing: You could have the BMW or you could be a year closer to not having to work for anyone ever again. Framing it that way helps. Its not like youre saving. Youre working towards your financial freedom.

Conscious of your spending. Conscious spending

I wonder where Ive heard that before?

Conscious spending allows you to know exactly how much money is in your bank account to spend without you worrying about having to make rent and pay the bills, because its already been done for you.

How? Through automated finances. This is the system where your paycheck automatically divvies up and transfers to where it needs to go as soon as you receive it.

Heres a 12-minute video of Ramit explaining exactly how to do it.

NOTE: If youre pursuing financial independence, youre going to want to adjust the percentage of money you put away to savings when you implement your plan. You can choose to save around 65% like Mad Fientist suggests, or you can choose to put half your paycheck into your savings like PoF encourages. Or you could go a different route. Its all up to you and your savings goals.

Using a conscious spending plan also allows you to not sweat the small things you like.

Realize that the small stuff is just that small stuff, PoF says. The biggest expenses are the big stuff like housing, transportation, and travel. Dont rent or buy too much home, spend too much on a luxury auto or lengthy commute, and learn to be comfortable at a Comfort Inn.

Remember: cut things you DONT care about, to focus on the things you do. Dont just indiscriminately cut everything.

You can also learn to cut costs by leveraging retirement accounts that give you amazing tax advantages.

If you want to find out more about awesome accounts like the Roth IRA and 401k be sure to check out our articles on the topic:

But for now, I want to talk to you about an account with fantastic tax leverages you might not have heard of before: health savings accounts (HSA).

According to the Mad Fientist, HSAs are tax-advantaged savings accounts available for people who are enrolled in high-deductible health insurance plans.

He continues, HSA account holders can contribute pre-tax dollars to the account and can then withdraw money from the account, tax-free, when paying for qualified medical expenses.

So you contribute tax-free money AND withdraw tax-free money.

As of writing this, you can contribute $3,400/year for individuals and $6,750/year for familiesto an HSA. By maxing it out each year, you can reduce your taxable income by $3,400.

In 2018, the contribution limits for both individuals and families will go up to $3,450 and $6,900respectively.

Sure, you cant take the money out other than to pay for certain medical expenses but when you turn 65 you can without incurring any penalties.

That means all that tax-free money is yours, effectively lowering your taxed income over your lifetime by $3,400/year.

You should do all that you can to legally reduce your tax burden, PoF explains. If you max out your workplace retirement accounts and an HSA [Health Savings Account], you can deduct a significant sum from your taxable income. Theres only so much a wage earner can do, but do all that you can to pay the least and save the most.

Once you have your retirement accounts set up, youve taken steps to cut costs, and youre ready to earn more money, congrats! Youre on the road to early retirement.

Now I want to offer you something to dramatically cut down the time it takes to save for retirement even MORE:

This guide will give you the exact systems you need to help you earn extra income on the side and eventually achieve financial independence (if you want it).

Youll find our tactics to:

Download a FREE copy of the Ultimate Guide today by entering your name and email below and start your financial independence journey today.

Read more:

Financial Independence: How to achieve FIRE w/ $1.5 million

There are several myths and misnomers when it comes to financial planning, and individuals can take in a lot advice from many good and not-so-good sources. Mistakes can range from confusing high incomes with wealth to not knowing the importance of taxasset placementwhen choosing your investments. This article attempts to shed some light on these areas and to help provide individuals with some key insights that can lead to a more financially independent life.

This guide to financial independence is part of theHow to GetRichtrilogyfor new investors.

Most people believe the key to wealth is a high-paying job. Yes, it's easier to amass assets if you have more monthly income, but one key to increasing your net worth is to spend less than you make. Ultimately, spending habits are the reason a professional athlete making $20 million a year can quickly go bankrupt while a bus driver can retire a multi-millionaire. It may be a clich, but it is a fundamental reality of money.

To escape the spending trap, you need to understand the difference between income and long-term wealth. While income is an obvious component of wealth, it's not the only factor. Many people see wealth as their total net worth at any given time. In other words, wealth can be thought of as the equity on your balance sheetyour assets minusliabilities.

Thinking long term is an important characteristic of accumulating wealth and achieving financial independence regardless of your income level. There are several considerations for long-term wealth, and they will differ for everyone.

If you are a doctor or lawyer, you need to put in long hours after years of education and specialty training to get a paycheck. That paycheck, however, does not necessarily translate to wealth. With long-term thinking, helping to ensure your jobs security, taking initiative to achieve a promotion, or taking steps that will result in higher sales commissions can all be factors for wealth and ways to move toward financial independence.

Side gigs, private investments, and a host of other variables can also be ways to think long term and accumulate wealth. A few considerations here may include a portfolio of private businesses, car washes, parking garages, stocks, bonds, mutual funds, real estate, patents, or trademarks. Some of these cash generators can be relied on for long-term income in addition to your job or just as cash generators that can pull in money while you take long vacations or sit by the pool.

When you take a look at your personal balance sheet, you may already have organic investments you can rely on in your quest for financial independence. Oftentimes, this is wealth that generatescapital gains, income, and dividends without labor. The more of these investments you can afford, the sooner you can fully achieve financial independence.

Overall, the real value of your income is partially determined by the amount you can invest to achieve a financial independence goal. Setting this goal can be important for keeping your perspective on income in check. At your goal, you can successfully maintain the lifestyle you want without working.

Working with a financial adviser can help you to set a goal for wealth accumulation that allows you to maintain your standard of living without an additional paycheck and achieve the financial independence of your dreams. This goal can be lofty,however, as most peoples annual spending includes a long list of budget items, such as mortgage payments, car payments, clothing, college tuitions, music lessons, entertainment expenses, and more.

The only way to take advantage of investment opportunities is to have the money to invest. In successful investing, there is a certain point where you reach critical mass, and the returns generated on your assets can change your life.

Earning a 10% return on $10,000 is only going to net you $1,000 before taxeshardly earth-shattering. But the same return on a $1,000,000 portfolio is $100,000, which has far more utility despite requiring the same effort and research.

Amassing wealth and becoming financially independent is a slow process that takes time. You do small things every daycut your expenses, generate extra income, and put the money into brokerage and tax-deferred retirement accounts. With time, it begins to amount to something.

As each new opportunity appears, you can react on a larger scale than your previous investments. That's calledcompounding. It's when the interest, dividends, and capital gains your money has earned begin to generate their own interest, dividends, and capital gains, and on and on in a virtuous cycle. It's how $10,000 can grow to $2,890,000 over 50 years at a 12% return.

Not all income is equal. Where and how you hold your assets can mean the difference between being somewhat well off and obscenely rich. Those with little or no wealth generate a lot of taxable income, while those who end up financially independent generate large unrealized gains in the form of real estate appreciation, unrealized capital gains, and profits made through tax-advantaged or tax-free accounts, such as an IRAor401(k).

A physician earning $250,000 per year is going to get taxed heavily, probably paying $95,000 in taxes for a net income of $155,000. Yet, if he had earned the same amount from within a pension plan or IRA, he wouldn't pay a single penny in taxes. That's an extra $95,000 per year compounding for him. At 12% over 30 years, that's an extra $23 million in wealth. That's right$23,000,000 simply because the money is earned within a tax-advantaged account instead of regular labor.

This is why you should do everything you can, within reason, to fully fund your retirement plans, as well as to focus on how your seemingly small decisions help or hurt tax planning. No decision is too small.

Gaining complete control over your time is often one factor in achieving financial independence. You may not have totally reached the investing goal that allows you to maintain your lifestyle without an additional paycheck, but if you have the freedom to spend your time how you want to, that might be the most powerful definition of wealth for you.

If each morning, when you show up to the office, or the job site, or the practice field, or studio, it feels like you are unwrapping a Christmas giftthen you are on track for achieving financial independence.

If you find the profession that gives you that feeling, and you are disciplined in managing the business side of it by controlling costs, you have a huge advantage over your competition. You may continue to work 8, 10, 12 hours a day or two, four, or 10 years longer, not because you need to, but because you love the process and product itself.

According to decades of extensive research by Thomas J. Stanley, Ph.D., author ofThe Millionaire Next Door, the grades one earns in school have no correlation with the economic wealth and success outside the medical and legal professions. That's not to say education isn't important88% of American millionaires did, in fact, graduate with an undergraduate degreebut academic performance is not all it's cracked up to be.

Why then, do parents, teachers, and counselors continue to tell children that they won't be successful if they have a C- GPA? Statistically speaking, according to Stanley, it's because often these people are themselves not financially successful. Therefore, they have no idea what it takes to achieve financial independence and thus buy into the great myth that good students go further in life. They measure analytical intelligence only and not the creative intelligence that is responsible for sparking innovations, societal advancements, and crafting solutions in niche markets that so many others miss.

They also fail to realize that most millionaires wear blue jeans, overalls, or work shirts, not a suit and tie. They eat McDonald's and Burger King. They live in ordinary, well-established neighborhoods. Most own their own business.

Statistically, if you want to guess who is going to be wealthy and financially independent, you'd be more likely to guess right choosing a self-sufficient student in shop class who paid for their own car, gets decent (but not spectacular) grades, has a job, and enjoys what they do than selecting someone from the honor roll. It's counterintuitive, but it's often true.

No matter how successful you are, unless your spouse is equally disciplined, frugal, and investment-oriented, your efforts toward a better, financially independent life are going to feel like struggling in quicksand.

The emotional, financial, and social toll that marrying the wrong person can take on your life will overwhelm almost any progress you can make in your career or pocketbook. As you try to build a life, they will be out spending your money, making it nearly impossible for you to achieve financial independence.

It may sound surprising, but a tremendous amount of success is based on proper temperament and psychology. How can you focus on your work and creating the life you always dreamed of if you are worried about the situation at home? To truly build a life, you need to have the kind of support that allows you to take risks because you know, no matter what happens, there will always be someone waiting for you at home who loves you unconditionally and shares your overarching financial goals.

Billionaire investorCharlie Mungerhas remarked that entrepreneurs can thrive if they specialize in an overlooked economic niche, much like animals in nature. Often, these niches are extremely lucrative but not likely to win you friends at cocktail parties.

Conjure up images of a multi-millionaire. What do you see? High-tech 20-somethings on a yacht? Molecular biologists? Although there are a few, most of the big money is in industries such as waste management, pizza, clothing stores, trailer parks, candles, and shipping.

Consider the case ofSam Walton. He built a tiny dime store from the corner of Arkansas into the biggest retailer in the world, amassing a family fortune of more than $191 billion.

There's nothing particularly exciting about selling 50-cent flip-flops and bottles of cheap cologne in small towns, but Walton was on a mission to bring affordable goods to everyday Americans. He was a man possessed with vision. He built his company one store at a timeone might even say one checkout at a timewith no fanfare or red carpet walks.

Business owners represent a disproportionately large segment of the millionaire population. It's hard to believe, but there's a good chance that the biggest hardware store owner or plumber in your town has a net worth many times that of the highest-paid doctor. Part of the reason is a concept we've discussed called capitalized earnings. Another reason is one Dr. Stanley mentioned in his book. Doctors are pressured to buy status symbols to convince their patients they are successful. Not the plumber. They can put more money into retirement accounts. Over decades, the result is millions in additional wealth for the guy who unclogged toilets instead of arteries. That's not something you learn about in school.

It is almost always a mistake to provide gifts of cash and support to those relatives who are unable to generate high incomes on their own or who are constantly in financial trouble.

Consider the incentive system you set up. One son becomes a physician and one daughter an attorney and you say they don't "need" your money, while at the same time you provide free rent, board, and bailouts for their sibling, who sits at home in credit card debt but refuses to look for work.

You have managed to effectively turn that child into a financial and credit junkie; its unlikely they'll ever get over their addiction. The child may tell you that they only need one more loan, but the fundamental, underlying problem is theinability to manage money. The support you give to your relatives should help them become financially independent themselves, not create a dependence on you. That's one way to ensure you'll never have financial freedom.

Read the original here:

How to Become Financially Independent - The Balance

Balloons flying free

Retirement can be defined as achieving financial independence in the third stage of life - typically after age 62 when you can claim Social Security.

Theres also a rapidly growing movement around FIRE (Financial Independence Retirement Early) where people aim to achieve financial independence and gain complete control over their scarcest resource, their time, at a much younger age. There are multiple FIRE communities with tens of thousands of people online who are trying to achieve financial independence in 10-15 years vs a traditional career of 40 years; one of the most active is ChooseFI. Theres even a movie coming out about it in 2019 Playing with FIRE.

Its worth noting that early retirement is still the exception with less than 1% of the population retiring before 50.

Traditional Retirement Still Dominates

What is Financial Independence

JD Roth, one of the original personal finance bloggers, defines it this way: without the need to earn more money. You might choose to work for other reasons such as passion or purpose but you no longer need a job to fund your lifestyle.

Hes even written a handy article on the six stages of financial independence - which is a great way to break down the problem and assess your own progress.

How to Achieve Financial Independence

To answer the question of how to achieve financial independence its worth examining the approach taken by the FIRE community since they have a bigger hurdle than traditional retirees, because they cant yet use Social Security or Medicare and have to fund a longer time period.

So lets look at the method used by FIRE and then we can explore some of the additional levers that traditional retirement people can use.

FIRE Method

The FIRE method basically comes down to a few core ideas - cut your expenses, save > 50% of your income and invest efficiently. Frugality is key for FIRE and youll see why below.

The typical approach to achieving FIRE is:

Traditional Retirement Method

Even though FIRE is hard to achieve and may by very hard for people with children, special needs or who live in HCOL (high cost of living) areas, there are still lessons for folks pursuing traditional retirement.

Traditional retirement provides for some key benefits for older people since they can take advantage of mortality credits - basically the fact that they have a shorter life expectancy means higher benefits in programs and products like Social Security, Medicare, Annuities and home equity products like Reverse Mortgages.

The retirement planning method that we follow at NewRetirement is:

The good news is that the body of knowledge about how to plan and achieve a secure retirement is growing. As more people enter retirement the market is getting more efficient with lower fees and more transparency across the board. A great way to get started is to use a simple retirement calculator to see where you stand and take the first step.

Read more here:

Achieving Financial Independence at Any Age - Forbes

Updated: February 12 2020 | Grant Sabatier This article includes links which we may receive compensation for if you click, at no cost to you.

We live in such a remarkable time. Its never been easier in history to make enough money to live a life you love.

People even 20 years ago would be so jealous of the opportunities we have today to live the life we want. We can work anywhere. Travel the world for less. This is at the core of the FIRE (financial independence retire early) movement.

And there are so many incredible blueprints for living a non-traditional life where youre stuck in a cubicle all day doing work you hate.

Theres a growing movement of people choosing to live life on their own terms. And Im part of it. Were the FIRE movement.

It truly can change your life. FIRE definitely changed mine. But when I started my own financial independence journey in 2010, there wasnt a movement yet.

We were a relatively small group of people all over the world using money as a tool to create more freedom in our lives. We figured out that the higher your savings rate the faster you can retire early.

Between 2010 and 2015 I launched a bunch of side hustles, saved upwards of 82% of my income and invested my money so it could grow.

This helped me reach financial independence and retire at the age of 30. I wrote an entire book about my journey and a step-by-step blueprint that anyone can follow titled Financial Freedom: A Proven Path to All The Money You Will Ever Need(Penguin Random House).

FI stands for financial independence.

While there are many definitions of financial independence, a simple way to sum it up, is you have reached financial independence when you are free from the worry of money.

For some people, this happens when theyd gotten out of debt and for others its the moment when you no longer have to work for money.

RE stands for retire early.

As surprising as it may seem, there are also many definitions of early retirement.

For some, it means the moment when you check out and never work again for the rest of your life (aka old school retirement).

But for others retiring early simply means theyve gotten to the point where they no longer have to work, but they might keep working, or switch to a job that they are more passionate about.

When you put FI and RE together you get FIRE.

But FIRE is more than just about money or personal finance optimization, its more about life optimization. The central question is What makes you happy? and aligning your spending and saving, and financial life around maximizing your happiness.

With that goal in mind, the FIRE movement also integrates psychology and philosophical concepts from other movements like Stoicism and even Buddhism.

Financial Independence Retire Early (FIRE) is ultimately a personal journey.

There are also many facets of FIRE that have spring up over the years:

New pockets of the FIRE movement seem to be popping up every day.

As you can see what FIRE means is ultimately up to you. Thats the beauty of it -- you truly can create your own path.

While the origins of the movement are hotly debated and evidently the term FIRE was first coined in an old Motley Fool forum sometime in the early 90s, the FIRE movement largely began in 1992 with the publication of one of my all-time favorite books, Your Money or Your Lifeby Joe Dominguez and Vicki Robin.

In the book, they outline a simple yet transcendent idea: that whenever youre working your actually trading your life energy for money. So whenever you buy something you should think about it in terms of hours of your life since you can always go out and make more money, but you can never get back your time.

To explore the 9 Steps in Your Money or Your Life check out the Free 5 Day Your Money or Your Life Email Course.

Hanging out with Vicki Robin the Godmother of the FIRE Movement on Whidbey Island, Washington

When I read Your Money or Your Life in August 2010 it completely changed my life. Over the past few years, Ive had the opportunity to become close friends with the co-author Vicki Robin and she graciously wrote the foreword to my book.

I feel so grateful to be able to work closely with Vicki to help make financial independence available to everyone.

But back 8 years ago when I started my own financial independence and early retirement journey, there were very few people on the FIRE path. In fact, I only knew of a handful of what are now known as FIRE bloggers.

Today there are thousands of bloggers documenting their financial independence journeys, an incredibly active financial independence subreddit, hundreds of podcasts, and even a documentary about the FIRE movement that Im in called Playing with FIRE that will be released soon and includes others members of the financial independence retire early community.

Im so stoked about it. Check out a preview of the documentary below.

Also, any good movement needs a folk song and there wasnt one about the FIRE movement so I wrote one. Heres me playing my FIRE movement folk song.

For anyone interested in the FIRE Movement, heres how it works.

Its simple in theory (which is why I could sum it up in a 90-second song) but is a little more challenging in execution.

To make it as simple as possible, here are the 9 steps to reach FIRE (financial independence retire early).

The biggest problem with mainstream personal finance and money advice is its all about the money!

But whats more important than money is life. You can always go out and make more money, but you can never get back your time. So before you even start thinking about the money, first think about what kind of life you want to live. Seriously, write it down.

What does the perfect day look like? Why is it perfect? What are the 10 things that make you happiest?

When I did this exercise I quickly realized that most of the things I enjoy most in life are actually pretty inexpensive or even free. It doesnt cost any money to walk my dog in a park on a Saturday, play guitar with my friends, or board games with my wife.

Once I started thinking in terms of the life I wanted to live and what I enjoyed most, it became easier to prioritize where to spend my money and where to save.

At the end of the day money only matters if you live a life you love. Ive always believed that money is not the goal, time is. But you need to think about what kind of life you want to live -- what is important to you?

Its always easier in life to chase that next thing -- whether its the next job promotion, raise, or save 1 million dollars.

Whats harder to do is take the time to figure out what actually makes you happy and what kind of life you want to live. But once you look within instead of just outside, the easier it will be to plan for financial freedom.

The next step is to figure out how much money you need to live that life awesome life! I remember being in college and dreaming about driving a Maserati and living in a big lake house, but now when I see a Maserati driving down the road I dont see $200,000, I see $1,200,000 in 30 years!

In 2010 when I started my financial independence journey, I didnt set a goal for how long it would take. All I knew was that when I did the math I was never going to be able to retire if I was only able to save 5-10% of a $40,000 -- $50,000 income.

The math I did was pretty simple. If I was able to save $5,000 per year maximum, even with an expected compounding rate of 6%, I would have about $433,000 in 30 years. While that might seem like a lot of money today,its not going to be that much in 30 years, because of two expected variables--taxes and inflation.

You will need to pay tax on that money when you take it out, assuming a 30% tax rate that cuts the after-tax value to $308,000, which when adjusted for 2% annual conservative inflation amount (it could be higher than this even!), then the future value of that money after taxes and inflation is approximately $170,000.

While $170,000 is still a lot of money, its not going to be in 30 years. It definitely wont be enough to live on for 20+ years.

Typical wisdom is that you need 25x your annual expenses to retire early. When I did this calculation, I anticipated my annual expenses would be at least $50,000 in the future (who knows if I will actually be able to live off $50,000 in the future--I sure hope so!).

But it was the best starting point I had, so by simply multiplying 25x by $50,000, I determined that I would need to save $1,250,000. Thats a big number, but it was my target.

You can sit down with a piece of paper and see how much money you need to retire early by checking this calculator I built.

Saving is an opportunity to live a life you love. Its not a sacrifice. As long as you view it as a sacrifice youre always going be in a scarcity mindset.

The only way that youll be able to reach financial freedom and FIRE is by saving as much money as you can and investing it to grow.

Remember what I said about living differently? A 50% saving/investing rate is more common than you would think amongst the FIRE (financial independence early retirement) crowd. I know a lot of people that save this much each month because they get it.

Saving 50%+ of your income is definitely going against the status quo, but thats how you fast track wealth. If you want to go deeper, here are two posts onhow much money you should be saving and my investing strategy.

The easiest way to monitor how much money youre saving is by tracking whats known as your savings rate. Your savings rate is simply the percentage of your income(s) that you are saving.

To calculate your savings rate, you want to add up all of the dollars that you save, both in pretax accounts (for example, 401(k)s and IRAs) and after-tax accounts (brokerage) and divide it by your income.

Here is an example of how it looks if you have a $100,000 income and are saving 40 percent.

Its pretty simple. The more money you can save the faster, and bigger, it can grow. The average savings rate in the United States is currently around 3.2%, which based on simple math means that a majority of Americans will never be able to retire.

But if you can get that savings rate to 20%, 30%, or even 50% youll be able to cut years and even decades off of your retirement.

Keeping a budget is really hard and its what stops most people from really fast tracking their financial independence.

Im not going to tell you to create a budget or cut back on all of your expenses. What you need is to balance how much you spend. Ive always viewed saving as an opportunity, not a sacrifice.

But you do need to find a way to reduce how much you are spending so you can increase how much you save.

The easiest way to do it is by cutting back on your housing, transportation, and food costs. The average American spends 70% of their money on housing, transportation, and food, so if you can spend less on them (say 25% or so, then you can bank the difference). If you move to a smaller apartment, walk to work, and cook at home, you could realistically increase your savings rate to 25%+ or even higher.

By reducing what I spent on my housing, transportation, and food costs, I increased my savings rate to 40% and sometimes as high as 80% while I was fast tracking my financial independence. The only way I was able to fast track was by cutting way back on my living expenses and investing the difference.

Focus on where you spend the most money to save the most money. Cut back your housing expense as much as you can through a strategy known as house hacking where you rent or buy a 3 or 4 bedroom apartment or house and rent out the other room. Youre going to save a lot more money doing that than by cutting out things like your $5 latte.

Im not here to tell you what to buy or not to buy, but its important to recognize that whenever you buy anything youre actually trading your future freedom for it.

At the end of the day it comes down to a personal choice, but I was happy moving to a smaller apartment, moving closer to my office, and eating out less, to bank the difference. And I definitely was able to bank the difference--saving at least an additional $13,000 per year by cutting back.

While I dont have the exact figures, I estimate that cutting back for 2 years, before buying my first home, I was able to save about $25,000 that I invested in 2011 and 2012, and that cutting back is now worth more than $100,000 in my investment accounts. Im going to continue to let it grow and hopefully making that decision 2 years ago will compound in 20 years into a lot more money. It was totally worth cutting back on my three biggest expenses. Try it out.

When I was on my own financial independence journey I calculated that for every $100 I saved I was buying a week of freedom in the future.

Not all debt is created equal. There is good debt vs bad debt. Some debt you lose money on and some debt you can make money with.

Good debt is debt like mortgage debt you use for investing in real estate or building a real estate empire or in some cases student loan debt if it helps you get a better job or make more money over your career.

Bad debt is credit card debt since the interest rate on it is probably over 20%. Pay down any credit card debt you have immediately since you are losing money with it.

While there are a bunch of different debt payoff strategies, the best strategy is simply to pay down your debt with the highest interest rate first, which in most cases is going to be credit card debt, then any personal loans, followed by student loans, and then mortgages.

The simple rationale is that compounding works both ways, meaning that just like your investments can grow and compound over time, so can your debt.

So whenever youre paying off a debt you want to pay down your highest interest rate debt because its like getting that percentage return on your money.

If you pay off your 20% interest rate credit card its like you made 20% because your debt is no longer growing, as opposed to paying down your student loan balance with a 5% interest rate where youd only be getting 5% on your money.

Since your full-time job is where youre likely currently making the most money, its important to try and get paid as much as possible.

The simple fact is that most people deserve a raise, but theyre too afraid to ask for one. The impact of a single raise of a few thousands of dollars can actually add up to tons of additional money over time.

Just getting 1 percent bigger raises each year can make you literally hundreds of thousands of dollars richer over the next twenty to thirty years by investing and compounding that small raise difference.

A simple study that looked at an annual 3 percent versus a 4 percent raise each year showed that after thirty years the 4 percent raise was worth $578,549 more when that small 1 percent difference was invested in the stock market.

This is because your future earning potential is impacted by your base salary today. Most people are underpaid in their roles, but many dont do anything about it.

Eighty-nine percent of Americans believe they deserve a raise, but only 54 percent plan to ask for one in the next year.

We typically spend more time planning for a vacation than working to improve and optimize our careers, which is a missed opportunity.

In reality, most of the jobs that will exist in 20 years havent even been created yet, so while traditional advice is that you should become an expert in one thing, its actually more valuable to have a broad range of complementary skill sets.

For example, if you know how to use Google Analytics, you should also learn about branding and how to start a blog.

A side hustle is anything you do to make money outside of your full-time job.

While you can make money doing literally anything, the best side hustles are the ones where you can make money doing something you actually enjoy and where you can control what youre getting paid and when you work.

Far too many people drive for Lyft or Uber and are limited by the hours in a day they have to drive and what they get paid because the rates are set by the company, not the drivers.

While there is an infinite number of side hustles that you can launch, I like the side hustles that you can do online because they give you the ultimate flexibility to make money from anywhere in the world and on your own time.

Some of the best current side hustles are learning how to become a virtual assistant, start a blog using Bluehost (check out how to make money blogging), and running Facebook ads.

Its essential to switch from a saving to an investing mindset. Its not possible to fast track financial independence by keeping your money in a savings account--investing is an essential ingredient.

I have made more money through investing than anything else and most of it in my sleep! Just recently, I was looking at my investing returns over a 90 day period and realized that I had made over $15,000 in gains from one of my investments, which is more money than I made in 6 months working at my first job after college. If you really want to make money, then you need to be investing as much money as you can.

Investing your money is what really accelerates your ability to reach financial freedom faster because your money starts making money and then the growth accelerates.

While you can invest in literally anything, the most dependable investments are stocks, bonds, and real estate. You need a short term investing strategy (money youre going to need in the next 5 years) and long term investing strategy (for the money youre going to need in 10+ years).

Note: Its always worth keeping at least 6 months of expenses saved in high-interest online savings account for any unexpected emergencies in whats known as an emergency fund.

Your short term investments should be kept in a high interest online savings account and your long term investments for retirement should be largely kept in low cost highly diversified index funds like the Vanguard Total Stock Market Index Fund (VTSAX) or something similar that holds most of the stocks in the U.S. stock market.

More here:

The FIRE Movement | Financial Independence Retire Early

Fueled by the news of ballooning student loans and pernicious credit card debt, a small but growing group of Americans are taking control of their money.

Part of the financial independence, retire early or FIRE movement, they are committed to saving money from their corporate jobs and even taking on side hustles to build additional income.

Aiming to save money - oftentimes 60% to 70% of their incomes - a group of Americans are taking ... [+] control of their personal finances, and participating in the financial independence, retire early movement.

Their goal? Build a substantial nest egg and then retire. Although many end up working in what they call retirement - running blogs or taking care of kids - the idea is to achieve financial independence, whereby they can choose their activities, rather than be tied to a workplace for a paycheck.

Inspired by the 2008 personal finance book Your Money or Your Life by Vicki Robin and Joe Dominguez, they promote what many Americans would consider to be unusual tactics to cutting costs from driving 30 year old cars to living in 52 square foot room.

And while every FIRE practitioner takes a different tact, here are three of the bigger names in the movement on how much theyd saved by 30, as well as a tactic they used to up their savings rate.

Fidelity recommends that the average American to have one year of their salary saved for retirement by 30. So if you make $50,000 a year, you should have $50,000 in a retirement account. Heres how these money experts in the financial independence, retire early movement compared.

Jillian Johnsrud of Montana Money Adventures

Saved (with husband) : $375,000, plus a pension valued at $400,000

Jillian Johnsrud and her husband saved nearly half a million dollars in order to fund their ... [+] Financial Independence, Retire Early lifestyle with five children.

My husband and I committed to saving half our income when we got married. Because we never earned six-figures that meant driving older cars, having a roommateeven after we had kids and finding low cost meals. I was passionate about travel, so we accepted a duty station in Europe and were able to travel frugally by driving and camping. We also opted to buy a home that needed a lot of work and slowly learned how to fix and upgrade it ourselves, which came in handy in the rentals we bought next.

Julien Saunders of Rich And Regular

Saved: around $20,000

By 30, Julien Saunders had saved over $20,000 in order to reach financial independence, retire early ... [+] by his late 30s.

In 2010 I was 30, and I had about $20,000 saved, between a savings account, a traditional IRA carried over from my twenties and one year of contributions to a 401k. It was during this time, I realized how little joy I got from cable and decided to cut the cord for good.

I then took it a step further and downgraded my cable internet to a high speed DSL service which was significantly less expensive and worked just as well for my needs.I've not had cable TV since and didn't regain cable internet until 2018. Every little bit helps!

Steph and Cel of Incoming Assets

Saved (together) by 30: $211, 658

Vancouverites Steph and Cel love to travel, and thanks to their frugal lifestyle they can visit far ... [+] flung destinations, while still working towards their financial independence retire early goals.

The only expense we ever really curtailed was lifestyle inflation. When we first met our income was very low and our spending reflected that. Then as we went from poverty-level income to normal income, we just kept our spending the same. Early on we did cut out a weekly home grocery delivery service that we had been using for a few years, though that was also inspired by their warehouse getting a nasty aphid infestation.

Originally posted here:

This Is How Much These Finance Experts Saved By 30 To Retire Early - Forbes

Like a lot of millennials, I long assumed I'd never be able to retire, so I didn't bother saving for retirement. I also felt like I could barely make a dent in a savings account for most of my 20s anyway, as I was busy paying off debt and trying to find a decent-paying job.

However, as I approached 30, my mindset changed. I started to think more about what I wanted my future to look like, and not just a year or two in advance, but a decade or two. I also watched my dad and stepmom retire in their early 50s, more than a decade before most of their peers.

Suddenly, I wanted to be able to retire early. The only problem was that I felt way too far behind.

My savings account balance hovered around $0 for most of my 20s. The few times I managed to save up money, or contributed to my 401(k) for a few years, I just as quickly drained it to travel or move across the country.

At age 29, I finally paid off all my debt and started a small emergency savings fund. By the time I turned 30, I was debt-free, and I'd built up my emergency savings fund to cover a year's worth of basic living expenses. However, by my 30th birthday, I still had $0 saved for retirement.

I kept saving, though, and a few months into my 30th year I had enough extra money stashed away to invest in index funds with Vanguard. I opened an account and finally started my retirement fund with a $10,000 balance.

I decided to set a goal for myself to retire by 50, despite having just started saving at age 30. That would give me 20 years to save and invest enough money to retire.

My dad's original goal was to retire by 50, so it seemed like a good age to me. Learning about the FIRE movement (financial independence, retire early) also inspired me to do this. It's all about changing up your lifestyle so you can increase your savings rate as much as possible, and then investing all of your savings until you have enough money invested that you can draw a salary from the dividends your investments earn.

Most members of this movement aim to retire much quicker, often within the next 10 years, or in their 30s and 40s. They do this by living frugally and saving at least 50% of their income, (a lot save 75%). In retirement, they often continue to live just as frugally.

To be honest, I'm not interested in living frugally, now or in retirement. So, I decided to meet the FIRE movement in the middle and give myself 20 years to save for retirement and achieve "financial independence," meaning I could live off my investments. To achieve this, you need to achieve a net worth that's 25 times your annual living expenses.

Using an early retirement calculator, I set my age to 30, my annual income to $80,000, my annual expenses to $45,000, and my current net worth to $10,000. These numbers gave me the magic age I was looking for: financial independence by 50.

With my savings rate at 44%, this plan is considered too spendy for most people in the early retirement movement. However, I felt that it was a reasonable compromise that would allow me to fully enjoy my life now while still achieving financial independence early on in life.

Under my current plan, my monthly expenses have to stay below $3,750 so that I can save $2,917 each month. If my income increases dramatically, I'll try to increase my savings rate along with it instead of falling prey to lifestyle inflation and spending all of that extra money. That way, I might retire even earlier, or I have an extra cushion in case my income ever takes a hit.

Switching to remote work and self-employment has, ironically, helped me save a lot of money. I have control over my income and can learn new, lucrative skills that allow me to demand higher rates and make more money.

I can also work from anywhere in the world, allowing me to live in low cost-of-living areas while making a higher salary. I moved abroad where I can afford to live the lifestyle I want without going into debt.

My strategy for keeping my savings rate up is to focus on keeping my three biggest fixed costs to a minimum: housing, transportation, and food. To be fair, I don't always keep my food costs to a minimum. But I make up for it by finding places to rent that are extremely low cost, by either living outside of city centers or renting with roommates, and getting around on foot and by public transportation. I don't own a car.

This won't work for everyone. Your own preferences and needs will dictate where you can and can't cut costs. However, if you're willing to make some big changes to your current life, it's possible to retire a lot earlier than you think.

Excerpt from:

My plan to retire by 50, even though I've never saved for retirement - Business Insider

The 50th anniversary of the first Womens Liberation Conference in Oxford was planned as a celebration of social struggle and triumphant survival. But on Saturday morning the event quickly turned into an angry and full-throated demonstration of the ongoing arguments inside the movement.

The alleged no platforming of feminist historian Selina Todd the night before the conference prompted loud protests from the packed hall at the former site of Ruskin College, the spot of the original meeting in 1970. This is cowardice. How can we do this to a woman who has worked all her life on behalf of other disenfranchised women? asked Julie Bindel, the radical feminist writer.

Organisers said that Todd had not been banned from the conference, but was asked to give up her short thank you speech slot on behalf of the Oxford University history faculty in response to a boycott threat from other speakers.

Author Lola Olufemi, a billed panellist who had pulled out of the event when she learned of Todds involvement, said in a statement that she felt the conference planners had not done enough to investigate Todds alignment with the Womans Place UK group, which she regards as transphobic. I have seen first-hand how middle-class white women with social capital have used their gatekeeping power to harass trans people, threaten them with defamation, actively work to curtail their rights, refused to extend solidarity, and then claim victimhood, she said, explaining why she withdrew from the event.

Womans Place UK is pushing for government ministers to consult more widely about changes to the Gender Recognition Act, which would allow people to legally self-identify as a man or a woman without medical approval. It rejects accusations that it is transphobic and trans-exclusionist. Its founders say it aims to ensure that womens voices are heard and our sex-based rights upheld. However, critics say it is trying to limit the rights of trans people.

Todd was re-invited into the hall after a show of hands in favour from a large majority, among them at least 15 women who were at the 1970 conference, including Sheila Rowbotham, Sue OSullivan and Sally Alexander, the activist played by Keira Knightley in the new film Misbehaviour.

Todd did not appear at the morning session, but a statement issued in criticism of her treatment and distributed around the hall said: Selina Todd supports the right of women and girls to same-sex spaces (such as refuges). This is enshrined in law. Her opponents believe the law should be changed. They arent willing to engage in respectful debate with those who disagree, preferring to silence feminists.

The text of Todds undelivered speech to the conference opened with thanks to Ruskin College, the trade union-sponsored educational establishment now based outside the city in Headington, as the place where her parents had met in 1967. Of feminisms future, she would have said: Weve got far to go and its easy to despair. But history reminds us feminism never starts from a good place: it is borne from oppression.

The BBC presenter Samira Ahmed also addressed the conference, saying she was concerned by the no platforming of Todd as she believed it was important to listen to each other.

Speaking about her recent battle for equal pay, one of four key demands back in 1970, she said: I never thought I would have to make a sex discrimination pay claim. I thought it would all be sorted.

Other demands of the original conference were improved education, 24-hour nurseries, free contraception and abortion on demand.

The mood of the 40th anniversary events was comparatively warm and nostalgic, according to accounts. The 50th birthday row, it seems, was much more in keeping with the fiery debate of the first conference, which had been called for by Rowbotham and was initially focused on womens collective history until it was realised so little had ever been recorded. Instead it turned to contemporary issues, and in a then radical twist, men ran a creche so that any mothers were free to speak.

Alexander, who as a student helped set up the first event, said she recalled it as episodic and chaotic. We had expected 100 women and 600 came, she said, going on to praise the calm manner of Sue Vickery who chaired the 1970 event. We were feeling our way, she said, and borrowing the vocabulary of other movements, like the civil rights campaign. We used the word woman then with a sense of enthusiasm and pride. The phrase Womens Liberation raised fear then for ourselves and for others, and sometimes it still does.

Seven other national Womens Liberation Movement conferences followed the initial Oxford event in 1970. Further central demands were added along the way, including legal and financial independence for all women, an end to discrimination against lesbians, freedom from intimidation by the threat or use of violence or sexual coercion, either in or outside marriage, and an end to laws and assumptions that shore up the male domination of women.

Most pertinently though it had different significance then a controversial decision made at the Birmingham conference put the right to a self-defined sexuality at the top as a preface to all the other demands.

See the original post:

Echoes of 1970 as row breaks out at celebration of feminist conference - The Guardian

Like many of our late-middle-aged peers, we have too much stuff. The garage is full of tools, utensils, scraps of wood and metal, bicycles and bicycle parts, coolers, boxes of old magazines and newspapers and stacked storage bins filled with things I couldnt bear to get rid of. Alas, theres no room for our cars.

And then theres the house and basement. We have about 4,000 books, more than 250 prints, paintings, ceramics and sculptures and the usual array of furniture, electronics, clothing, appliances large and small and enough kitchen stuff to equip a medium-sized restaurant.

It wasnt always thus. During my 20s, I lived on a medium-sized sailboat, and had no stuff. There was space for everything necessary and no space for anything else. It was great until real life intervened and I found myself married with kids, living in Rockrimmon.

And so began the era of acquisition and accumulation. We bought stuff and replaced it with better stuff. We moved into a bigger house, and bought bigger furniture. Marie Kondo had yet to tell us that we didnt own our stuff it owned us.

We were obedient consumers, doing our part to fuel the stuff-based economy. At the time, it seemed like an endless and beneficent cycle buy things, keep the good stuff, preserve tangible memories, care for treasures passed down from past generations and eventually give everything to the kids and move to Florida.

But what if the kids dont want any stuff? Gen X, Millennials and Gen Z seem more attracted to uncluttered lives, reduced carbon footprints and the freedom and flexibility of stuff-free lives. They prefer clean, spare spaces without much visual clutter. They dont want to be burdened by oriental rugs, shelves of books, antique furniture or gilt-framed 19th century landscape paintings.

Their preferences may combine with other trends to reconfigure our economy locally, as well as nationally. Downtowns explosive growth has been strongly influenced by minimalist adults who prefer urban amenities to suburban commutes. Automobiles are seen as expensive pains in the butt, not buoyant symbols of freedom and mobility. And climate change? Its real, its happening now and we have to radically alter our lifestyles to prevent it from destroying civilization. Every one of us ought to travel less, walk and bike more and temper consumption.

Consider FIRE, the movement to combine frugal living and savings rates of 50-70 percent of income to achieve financial independence within 10-15 years and retire early. The concept, first framed by Vicki Robin and Joe Dominguez in their 1992 book Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence, is to stop trading your time for money to buy consumer goods.

Youre buying back your life, said Robin, Your one wild and precious life. Minimalists remind us that time is irreplaceable and that We spend money we dont have to buy things we dont need to impress people we dont even know.

Do these related phenomena signal a major cultural shift?

If so, legacy companies like Ford may go broke and our easternmost suburbs may stop expanding long before they reach the Kansas line. Amazon may hire a couple thousand folks in Colorado Springs, but many more may lose their jobs as retail outlets continue to close or shrink.

Given our military/military contractor economic base, were well positioned to avoid the worst of the coming cultural storm. And if Americans follow Greta Thunbergs example and avoid international plane travel, our visitor industry should thrive. Forget Rome, Paris and Bangkok come to COS!

Cultural shift or not, its difficult to believe that a country headed by a luxury-loving billionaire from Queens would ever forsake the high life.

Yet as tastes change, so do the prices of the baubles once prized by wealthy American strivers. Less-than-pristine collector cars havent drawn much interest at recent auctions, while second-tier Midwestern regionalist art from the 1930s has cratered.

And unlike the FIRE folks, I didnt make good investment decisions. I sold my 1969 428 SCJ Mercury Cyclone for a few thousand bucks before the prices of rare muscle cars exploded and am still holding on to my Midwestern regionalists, although theyre worth a lot less than I paid 30 years ago. Meanwhile, Im trying get rid of the junk. Anybody want some old newspapers?

But first I have to reread them all

Read the original here:

Hazlehurst: What do we do with all this stuff? - Colorado Springs Business Journal

Giving up your job to look after a family member or friend may not be something youve given much thought to, but two in three UK adults can expect to become an unpaid carer during their lifetime, according to Carers UK.

About 600 people a day quit work to look after for someone who is older, disabled or seriously ill, and the emotional and financial impact on these individuals can be huge.

While research suggests unpaid carers save the UK economy about 132bn a year, the main carers benefit, carers allowance, is just 66.15 a week if you care for someone for at least 35 hours a week.

Four carers tell us how they make ends meet.

Mary Adeson, 33, is an auditor and lives in London. She has helped care for her mother, Caroline, 57, who has schizophrenia, with her two sisters since she was a teenager

From a young age, my twin sister, Hannah, and my sister Heide, 27, and I have looked after my mum. Shed often feel really depressed. We didnt realise she had a mental health disorder until she was repeatedly sectioned after a number of incidents over the years. We didnt want to put additional pressure on her, so we learned to manage ourselves. We became very self-sufficient.

By the time I was in year 11, I had part-time jobs. Hannah and I had to go to work as mum wasnt able to. We couldnt depend on her to pay the bills, and letters would pile up. Hannah and I just split the costs. When I was at college I worked evenings and weekends and then over the holidays. I always worked while studying.

Now I work full-time as an auditor and still live at home with my mum and Heide. We both handle all the finances. While my mum receives disability allowance, we dont claim for carers allowance. With my salary, I dont feel like its necessary.

Do I feel like Ive missed out on any luxuries? For a long time now Ive always just worked out what my budget is. I know how much Ive got and what my expenses are, so nothing comes as a surprise. I felt more of an impact when I was working during school, college and university. It was difficult paying for accommodation as well as dealing with my financial responsibilities at home. But I just had to find a way to make it work.

I do have to watch my spending, and Im quite mindful about the future. I worry about what will happen if mum gets worse and we need to pay for her to go into a home. Im always thinking about how to make my money work harder: I invest in stocks and shares and art, and I have a pension. I dont have the luxury not to think about it.

John Stefanyszyn, 64, lives in Sheffield and looks after his wife, Joanna, 46, and his niece, Lauren, 20, who both have ME

My wife has had ME since she was 14, but in the past year shes also suffered from pudendal neuralgia. Shes in constant pain and has to spend a lot of time in bed. While a nerve-block injection last June improved her condition slightly, the past year has been very dark.

Im between a rock and a hard place trying to survive. I stopped working as an NVQ enroller about three years ago to care for my wife. I receive a carers allowance of just 66.15 a week. Fortunately, I receive a private pension of 400 a month from my 16 years working in the civil service and as an Investors in People manager. Without that, Id be destitute.

My wife receives employment support and personal independence payment (Pip) of about 700-800 a month. But with outgoings such as mortgage, insurance, car and groceries, we struggle every month. We have to sit down and look at what goes in and out.

A year ago, I thought about redecorating downstairs, but now were struggling to get that done because of the cost. Fortunately the Sheffield Carers Trust managed to sort out a holiday for us to a B&B in Scarborough in October. But otherwise theres no way you can pay for holidays and sustain your life. Without my pension wed be absolutely screwed I dont know how we could afford anything. I try to stay on top of things but its difficult. For the past three years Ive also looked after my niece. Shes in her own flat, and carers go to visit, but I look after her advocacy and fight for her rights.

I spend half my time worrying about money and the other half battling for basics and being an advocate. Its a constant fight for resources across the board, and it takes time, energy and capability. Sometimes its easier to just give up and let injustice walk over you.

I do worry for the future. If anything happens to me, who will look after my wife and niece? You do go through some bad moods, thinking you are better off dead. You dont choose this life. Its not fun, its just basic survival.

Helen, 48, lives in Salisbury and cares for her daughter, Maja, 21, who has Kleefstra syndrome, a rare genetic disorder, and has specialist learning and physical support needs

Maja was born with Kleefstra syndrome, which means she has floppy joints and isnt so stable. She didnt start walking or talking until she was eight. She functions like a four- to seven-year-old, depending on the activity. She can write and has a good vocabulary. Shes really sociable but shes prone to low moods and mental health problems.

Maja attends a specialist college on Monday to Friday, 9am to 3pm. We live on benefits as its difficult to find a job because of the holidays. Last summer Maja had eight weeks off, then theres Christmas holidays and so on. An employer that flexible just doesnt exist. I always try to keep an eye out for a job. I receive income support of 87.60 every two weeks and a carers allowance of 66.15 every week. Maja receives personal independence payment of 350.60 and 588 in universal credit every month.

Waiting five weeks for her universal credit to come through left me in debt. Ive a 500 overdraft now. I dont seem to be able to get out of it. Im recently married but my husband doesnt live with me, so Im financially in control. I pay the bills, but he does help out because he feels like he should but, at the same time, he has property elsewhere and has bills to pay. Its difficult to get a break. I receive income for a carer to come in for three hours a week.

When Maja was 18, I received 43 nights of care per year, and she would go to a respite centre in Salisbury, which she loved. This was taken away in July. Maja misses it terribly. I miss it too. An overnight break is very important for us both.

Im grateful that I live in the UK and that we have a benefits system at all. However, the problem is that if youre a carer like me, my daughters condition isnt going to change. If it does, it will only get worse. What I mean is, there is no cure for my daughter this is a permanent situation. So we live on benefits.

I put money aside for Majas pocket money and her needs, clubs, activities and special holidays, but we cant afford to replace old clothes, shoes or broken furniture, electrical appliances and to generally maintain and upkeep our place. My choice has always been: do I give my daughter a myriad of opportunities and experiences, or use the money to maintain my home and garden better?

Syreeta Challinger, 38, founder of a lifestyle store, lives in Frome, Somerset, and cares for her husband Rob, 42, who is paralysed on his right side and has aphasia and epilepsy after having a brain haemorrhage and stroke in 2014

Rob and I had been living and working in Hong Kong for several years when he suffered a brain haemorrhage and stroke while on holiday in Sydney. It resulted in Rob losing his speech and requiring 24-hour care. As we hadnt been recently residing in the UK, we were unable to claim any benefits for the first two years, and we moved in with Robs parents in Lincoln.

I managed to keep my job and work remotely, but it meant commuting to Hong Kong every three to four weeks. Commuting to another continent is not good for anyone, never mind with what we were going through. I ended up quitting to become a full-time carer.

Over the years Ive applied for so many jobs, but once you tell employers your circumstances and that you potentially require flexible working, youre not such a suitable candidate any more. I did work part-time in a local shop for 8 an hour, but having worked in high-end roles before meant I was probably too can-do for the job.

At the moment, Rob receives Pip of 350 a month, and I receive carers allowance of 66 a week. What are you supposed to buy with 66 a week? It hardly covers a food shop. In the summer we moved from Lincoln to Frome to be closer to friends. Were renting a bungalow, which is doable through financial support from family members and savings from the good jobs we had in Hong Kong. However, were literally on zero now.

The focus this year has been figuring out how to get back to supporting the three of us our son, Grayson, was born in the summer. Rob doesnt receive employment and support allowance any more, as Im attempting to work. A job coach at the Department for Work and Pensions advised that I would be financially better off if I didnt work, but Im just 38 I dont want to be staring at four walls every day.

Im trying to figure out a solution that works around Robs needs. Im excited but also extremely scared about how were going to make this work, but I have hope now Rob doesnt need 24/7 care, his speech is coming back and he communicates through drawings.

In 2016 I launched Moments of Sense and Style, a lifestyle store selling products that align with our story and offering a message of courage, strength and hope. I spend 10 hours a week on it but Id love to market it more. For the future, I want to get on top of the bills and then have a little fun again and maybe take a holiday. Things have been really stripped back for us since the incident.

The proposed closure of UK borders to low-skilled workers after Brexit has caused carers to be dragged into the discussion.

The home secretary, Priti Patel, has been heavily criticised in some quarters for suggesting employers could plug the gap with some of the 8 million Britons between the ages of 16 and 64 classed as economically inactive a cohort that includes those with caring responsibilities, long-term sick and retired people, and students.

Helen Walker, the chief executive of Carers UK, says caring for a loved one round the clock can mean a real struggle to make ends meet. Many carers have to manage on a reduced income, and the majority spend that limited income or savings on the cost of care, specialist equipment or products reducing their financial resilience.

Our research shows that financial hardship worsens for carers the longer they are caring, with double the proportion of carers in debt after 15 years of caring, compared with those in their first year. More than half of unpaid carers save nothing for retirement. This has huge implications for carers and the economy in the long term, with many left drained of money in later life and in need of support from the state and our social care system which in its current form is already creaking.

Carers UK wants the government to increase the carers allowance and allow unpaid carers to earn more and keep their benefit. We must see unpaid carers put at the heart of a reformed and sustainable adult social care system, says Walker.

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Its just basic survival: the financial toll of being a carer - The Guardian

Accomplishing the financial cushion to retire early is a fantasy for most. Bringing the fantasy to reality is not as difficult as it sounds. The key is straightforward: Save significantly more every month. Sounds simple, correct? One moment.

The typical rule of thumb given by financial planners is to have a goal of saving up to 20% of total earnings. But if you want to retire when you're younger, that percentage will probably need to be more like 40% to 50% of your income. Of course, that's not so simple since a big part of your paycheck goes to day-to-day, necessary expenses. So if you want to save that much, you need to make some serious lifestyle adjustments. It requires making changes, but it's doable.

A relatively new movement called Financial Independence, Retire Early (FIRE) has been developed around this "sacrifice and over-save now to retire early" concept. FIRE followers develop strict savings programs (up to 75% of income) and make associated sacrifices like living in small apartments, walking to work every day, restrictive diets, and so on. This path may be too restrictive for many, but the mindset offers some takeaways that might be worth considering.

First, stick with the fundamentals of long-term growth investing: Choose a diversified portfolio of stocks with exposure to different styles, sizes, sectors, and regions.

To speed up the retirement investment cycle, you can build a portfolio structured with more risk - and the potential for higher returns. It should in any case be adequately diversified to safeguard against sharper than normal market downturns that can be hard to recuperate from and that can ruin any opportunity to achieve your early retirement goal. There are various strategies to diversify a portfolio, and how you do so should be guided by your age, your risk appetite, your growth and income needs, and your long-term objectives.

After accelerating your savings and setting up an ongoing plan, invest your savings into your portfolio at the earliest opportunity. Try not to attempt to time the market. Stay put, and let the compounding characteristics of the markets do its work to help grow your retirement wealth exponentially over time.

Astute investors pick retirement growth stocks with low beta, strong earnings estimates, positive sales growth, and expected future growth.

Zacks offers investors useful rankings for lower risk growth stocks for retirement portfolios. The following are a few selections that merit a closer look: OceanFirst Financial (OCFC), TC Energy (TRP) and NexPoint Residential Trust Inc. (NXRT). Earnings and revenue has seen growth of at least 5% or higher over the last five years, with a beta of 1 or lower.

Do You Know the Top 9 Retirement Investing Mistakes?

Whether you're planning to retire early or not, don't let investing mistakes derail your plans.

If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.

This report will help you steer clear of the most common mistakes, like trying to time the market, lack of diversification in your portfolio, and many more. Get Your FREE Guide NowNexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis ReportTC Energy Corporation (TRP) : Free Stock Analysis ReportOceanFirst Financial Corp. (OCFC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.

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Easy Investing Secrets to an Early Retirement - February 21, 2020 - Yahoo Finance

Clearly, there is a lot of work needed to be done in the economic and financial empowerment of women. The Women Financial Advisers Network (WFAN) works tirelessly with 100% commitment towards empowering women and giving them the right tools for financial independence. Partha Iyengar along with his partner Prajakta Shidhore (co-founders Life & Money) together started WFAN with the objective of bridging the gender gap in India by encouraging women to embrace financial well being and training them to become successful financial advisers.

As Iyengar puts it, "Research shows, 60% of young women drop out of the workforcewithin 5 years and overall 26% drop off from the workplace completely. Our vision is to bridge the gender gap in the workplace in India, by empowering them not only to become micro-entrepreneurs and financially independent, but also to help them lead a balanced and meaningful life. Once they have the skills, they can then help serve other men and women across age groups through the four paths that we use to facilitate this transition towards financial awareness and independence."

The learning process for the four paths mentioned by Iyengar are, Financial Life Planner and Investment Adviser, Holistic Financial Wellness Coach, Holistic Financial Wellness Program Trainer, Holistic Financial Wellness Program Children. All the learning across these is based on Life Planning and Coaching Process.

The low ranking that India holds in the economic gender gap is the result of symptoms like low self-confidence and financial awareness among its women. Thankfully this can change. With a view to bring the best minds to this generous and ambitious objective of bridging the gender gap, WFAN is announcing key international partnerships and collaborations across the four paths.

These will be beneficial in developing learning processes and scalable formats for members of WFAN and also for the overall community.

Speaking about the launch of these collaborations, Partha Iyengar, Co-founder, WFAN and Life & Money, shared these thoughts, "Our virtual learning platform along with various collaborations help us provide our members 24x7 support through Global and Indian coaches. Moreover, they will be able to learn from time tested templates, toolkits, resources and will have access to an amazing vibrant global community that holds each other's back.Our vision and mission also include the need to be in alignment with 6 out of 17 UN Sustainable Goals for 2030. We are committed to the UN Sustainable Goals and in the next phase of our expansion, we will be expanding the platform on a large scale to the rural market to serve women and the consumers of rural India."

The journey began with a purposeful collaboration between WFAN and The Garrett Planning Network, USA founded by Sheryl Garrett in 2000. The 'Financial Life Planner and Investment Adviser' program focuses on helping existing Independent Financial Advisers to transition to a Fee-Only model and add value to themselves and their clients.The Garrett Planning Network pioneered the fee only hourly model to serve the underserved low and middle-income earners in the United States. The network currently has 250 members serving 25000 families across the US. Garrett and her team will be involved in making their successful model applicable and scalable in India. Read more about them on https://garrettplanningnetwork.com.

Next comes the exclusive collaboration with Sage Financial Solutions Inc, USA founded by Saundra Davis in 2010. Davis has pioneered the coaching profession focused on the finance industry. This collaboration will facilitate the certification of "Holistic Financial Wellness Coach" by applying their customised curriculum which focuses on balance rather than just financial awareness and execution. You can read more about the existing program here: http://sagefinancialsolutions.org/.

In another exclusive collaboration, WFAN has partnered with It's a Habit Inc, USA for their children and money wellness program.It's a Habit Inc was launched by Sam Renick in the year 2000. His 'Sammy Rabbit' program for children has impacted an estimated 2,50,000 young minds in the age group of 3-13 years, across the US. You can read more about the existing program here: https://sammyrabbit.com/.

Lastly, the path towards Holistic Financial Wellness Programs Trainer, is covered by Life & Money, based on a curriculum designed keeping in mind the teachings from Richard Thaler's 'Nudge'. You can know more about the existing onsite and online programs here: http://www.yourlifeandmoney.com.

Women can become members and participate across the four paths to access earning capabilities through these in a fee only model. Each path involves a two-day live training program followed by access to the online network and platform and coaches.

All these efforts together will not only result in bridging the gender gap by bringing more women into the workforce through micro-entrepreneurship but also improve the financial awareness of the overall community by sharing this knowledge through coaching programs cutting through various age groups.

About WFAN:

Partha Iyengar, co-founder of Life and Money has been following the work and practices of his role model and mentor, Sheryl Garrett at The Garrett Planning Network. Iyengaris an experienced Trainer and Financial Life Planner. Iyengar has pioneered the fee-only model in Financial Life Planning in India. His unique Financial Wellness and Life Planning programs for millennials and financial advisers impacted thousands of participants. The idea of spreading this awareness and training to empower women has now taken shape through WFAN.

Iyengar hopesto reach as many women as possible in an endeavour to make them self-reliant entrepreneurs, who can then share their own learning through the coaching skills acquired in the four paths defined by WFAN and help their clients to lead a rich and balanced life.

The six UN Sustainable Development Goals that WFAN has aligned itself with are, good health and wellbeing, gender equality, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities and partnerships for the goals.

Read more about it on http://www.wfan.in.

Contact: partha@yourlifeandmoney.com

SOURCE WFAN

https://www.wfan.in

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WFAN to Enable Women Towards the Path of Financial Independence - PRNewswire

Being financially stable and independent is supposedly a goal for each one of us. More often than not, we add it to the list of our resolutions at the beginning of each New Year, and it is likely to tell that this year is no different. However, things do not always go according to the plan on paper. One of the reasons for this is our money-handling mannerisms. Yes, you can only change your financial health if you get better with money. Now, here are a few simple tips that can help you fix this.

Can you really be financially independent? Thats often a debatable question both in finance classes and in these streets. Well, you can! In fact, it starts by acknowledging that it is not only possible to achieve financial independence but also live debt-free life.

However, this is only possible if you budget for your needs, and live within your means. In other words, spending a small fraction of what you are earning is one of the best ways to have financial stability and freedom. Personal budgeting doesnt need a lot in terms of financial skills. You can use personal budgeting apps and other tools to help you track your budget and cash flow.

Putting an extra coin in an income-generating plan is a sure-shot way of safeguarding the future. Its an insurance policy financially. Although investment plans will vary depending on such factors like age and financial ambitions, you ought to implement this personal finance advice to secure your future. Try to invest part of your income in a venture that makes you some money now and in the future. Its one solid way of securing an independent financial future.

In life, there are rainy days, and the only way to survive through them is by making hay while the sun shines. Yes, that may sound like a clich, but in the context of a safe financial future, it makes sense!

Different people have different earning patterns. Some wait until the end of the month for their accounts to chime. Others earn on a work basis and therefore the payments might be irregular. Still, there are those, like freelancers, who only earn when some paying job is thrown their way.

It doesnt matter what your earning pattern is. The fact remains that you need a savings plan that suits your future needs. Opening a savings account and setting a savings plan can help one navigate financial shocks of an uncertain future. This can be achieved by setting aside a certain percentage of your net earnings and depositing in a savings account, especially one that you can earn some interests and dividends from.

There are myriad motivations for saving, besides financial security. Your savings will help you settle a debt in future, or buy some property, or add to your investments etc. So, you should start saving as much as your earnings permit to improve your financial health.

Money brings with it burning passion. As the one earning it, you feel the need to spend it in satisfying not only your most necessary needs but also the insatiable wants. The defining gap between the two is usually too narrow to differentiate. Thats why you will buy ice cream when its sunny and still buy a bottle of water.

Whats important here is deciding what you cannot do without and spending on it, while keeping discipline to avoid spending on items you can conveniently do without. As such, it is important to cultivate a culture of budget spending on things that you need and completely avoiding impulse buying or unplanned spending.

Regardless of our financial strictness, there are times when taking a debt becomes a necessary part of financial growth and survival. For example, you can take a debt to expand on your business, settle for medical bills, accelerate a start-up, etc. Whats quite important in this case is to only take up necessary debt with a well laid out plan on how to repay the debt. This helps you to avoid debt traps which could disrupt your future financial plans.

In a nutshell, it is worth noting that financial stability is indeed a possibility! But your money handling mannerisms will dictate if you can achieve financial health. Start by learning how to budget for your needs, learn how to save and more importantly keep an eye on accruing unnecessary debt.

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Simple yet effective rules to improve your financial health - AZ Big Media

Prince Harry and his wife, Meghan, will give up the name royal as they withdraw from official duties as members of the British royal family and embark on new lives in the private sector, the couple confirmed on Friday.

Harry and Meghan, who are also known as the duke and duchess of Sussex, had planned to use the name SussexRoyal as an umbrella brand for their new charitable foundation and social media accounts.

But after protracted and difficult negotiations with Buckingham Palace, the couple has agreed not to use royal in any of their philanthropic or commercial activities after this spring. They will withdraw trademark applications using the name and remove it from their Instagram account and website.

On the site, the couple left little doubt that this like other aspects of their new arrangement with Buckingham Palace was not their preferred outcome.

The preference of The Duke and Duchess of Sussex was to continue to support Her Majesty The Queen, albeit in a more limited capacity, they wrote in a lengthy description of their new status, including the loss of the royal designation.

That decision cements the split between Harry, the second son of Prince Charles, and the House of Windsor, one that emerged last fall when he and Meghan abruptly announced that they planned to step back from their duties, seek financial independence and spend part of the year living in North America.

That precipitated the deepest crisis for the royal family since the aftermath of the death of Harrys mother, Princess Diana, in a car crash in 1997.

Britains tabloids ran headlines about a rift between Harry and his brother, Prince William, and reports that Meghan, an American actress who married Harry in May 2018, was isolated and unhappy in her new family.

After emotionally charged negotiations that resulted in an uncompromising deal, Queen Elizabeth II granted the couples wish to leave in return for them agreeing not to use their loftiest titles, His Royal Highness and Her Royal Highness, and for giving up other perks and privileges, including public funding.

Harry and Meghan, however, had clearly hoped to retain a residual link to their royal pedigrees. In addition to the Instagram account and slickly produced website, they had planned to stamp SussexRoyal on a range of products.

Losing the royal designation could theoretically diminish their earning power, though people close to the couple point out that Harry will remain a prince, sixth in the line of succession to the throne. The couple will also continue to be able to use the titles of duke and duchess of Sussex, including in their new ventures.

In Britain, use of the word royal is subject to legal limitations, the couples spokeswoman said. Even outside Britain, the duke and duchess have agreed not to use the designation. Harry and Meghan are currently living in Canada and are expected to spend part of the year in Southern California, where Meghan grew up.

On their website, Harry and Meghan asserted that Buckingham Palace had no legal right to prevent them from using royal outside Britain, but that they would do so voluntarily. They suggested that other members of the royal family who wanted to work in the private sector had been treated differently.

While there is precedent for other titled members of the Royal Family to seek employment outside of the institution, for The Duke and Duchess of Sussex, a 12-month review has been put in place, they wrote.

The couple said they planned to start a new nonprofit organization in the spring, which will be their primary vehicle for a range of philanthropic activities. They recently conferred with experts at Stanford University about the venture.

The couple are also hitting the lecture circuit: This month, they spoke at an event in Miami organized by J.P. Morgan.

Harry and Meghan will formally step down as working members of the royal family on March 31, the palace said this week. Their new status, under which they are allowed to retain their residence, Frogmore Cottage, on the grounds of Windsor Castle in addition to the Sussex titles, will be reviewed after a year.

The couple closed their office in Buckingham Palace, which will result in the departure of about 15 people, including their private secretary and communications secretary. Their private secretary, Fiona Mcilwham, is expected to return to the Foreign Office, where she had been a diplomat.

As part of their severance agreement, announced in January, Harry and Meghan said they would no longer accept money from the Sovereign Grant, which finances the official activities of the royal family.

They also said they would repay at least 2.4 million pounds ($3.1 million) in publicly funded renovations to Frogmore Cottage. That funding had come under sharp criticism even before they announced they wanted to switch to part-time status.

How the couple plan to finance their lifestyle still remains something of a mystery. Harry and Meghan draw an annual income from the Duchy of Cornwall, a hereditary estate owned by Prince Charles. Harry inherited several million dollars from his late mother, while before their marriage, his wife, then Meghan Markle, made a good salary as an actress in the television drama Suits.

Even as Harry and Meghan set off on their new lives, Buckingham Palace was at pains to show that the couple would continue to have a link to Britain. The palace issued a schedule of events in which they would take part.

Later this month, Prince Harry will visit a recording session with the rock star Jon Bon Jovi, who plans to re-record his hit song, Unbroken, in honor of the Invictus Games, which Harry created for wounded and ill service members. Next month, the couple will attend an awards ceremony for service members.

Harry and Meghan will also attend a performance of the Royal Marines band in Royal Albert Hall, while Meghan will mark International Womens Day on March 8, though the palace has not released details of her agenda. Harry is also expected to take part in the annual Commonwealth service at Westminster Abbey on March 9.

The rest is here:

For Harry and Meghan, No More Royal in Their Brand - The New York Times

Amon and Christina Browning amassed over $2 million in just eight years. Theyre 40 and 42, have two kids and saved a chunk of their cash by hustling side income.

Those factors, plus a little creativity, were the kindling for their FIRE ingredients to crackle to life.

Amon and Christina are part of the FIRE movement, though they started saving aggressively before they really even knew what FIRE was.

People still dont really understand how you live off your portfolio in FIRE, says Amon.

The FIRE trend involves saving aggressively approximately 50% to 75% of yearly income and retiring once youve saved 25 to 40 times your annual expenses.

The Brownings credit a can-do mindset, an $800 car, side hustles and teaching themselves financial literacy so they could dub themselves what Amon calls the cubicle millionaires next door. They now live in Portugal and embrace a freer lifestyle. It involves plenty of walks, beach time, learning Portuguese and watching their two girls grow up.

Just the other day, our youngest daughter wanted to have all her friends over from school during lunchtime. For us, thats over three hours of prep time and getting all the kids lunch. That's something we would never be able to do during a regular workday, says Christina.

Amon says the couple is "able to really slow down and savor things."

FIRE, which stands for Financial Independence, Retire Early, became popular among millennials during the last decade.

The Brownings didnt set out to be mega-savers. In fact, 10 years ago, they saved about 10% of their income each year and went through life like most Americans.

We were just going to work and coming home. We were just basically in the rat race. We weren't being intentional, we didn't have a plan, we were just kind of going with the flow, says Amon.

Amon says the FIRE spark ignited the day he won a service award. Hed been working for the federal government for about 10 years and he and another individual accepted a thanks for your service award. The other man had been on the job for 30 or 40 years.

They just handed the award to me like it was nothing, and that night I went home to Christina and I said, I just can't see myself at work another 30 or 40 years. What would I really have to show for it but a piece of paper? says Amon. I liked my job and I liked the people. I just felt like I was missing out on life.

Christina says she experienced mixed emotions when Amon told her he wanted to tackle financial independence: she was surprised and also loved the idea.

So I think one of the reasons why we were so successful in getting started reaching financial independence is because we worked together on trying to figure out how we could do it. The reaction was like, OK, what do we need to do to get this done? How do we work together and make this happen? she says.

The first thing the Brownings did was become more intentional about how they tracked and spent their money, says Amon.

Next, they focused on making more money, using their creative side to come up with side hustles that could generate income to invest in real estate or their investment portfolio.

There's only so much we could make each year based off of our salary alone, says Christina.

The side hustles werent the usual waitering jobs.

In the Bay Area, they did cosmetic touch-ups on homes and flipped them into attractive AirBnBs by doing the following:

The Brownings say anyone at any age can do FIRE, and here are their tips:

"And so if people arent really agreeable to the process that were going through and dont really want to hear how were going through it but just want to be negative, then we dont surround ourselves with people like that."

She suggests surrounding yourself with positive people that encourage you throughout the process.

The Brownings say theyre asked this question all the time: so, how do you get to your magical FIRE number?

They say its easy to calculate, even if its not as simple to put it into action:

The Brownings message has spread likewildfire. They have their own website and YouTube channel and live life with an eye toward financial independence for their kidstoo. In short, their money works for them instead of the other way around.

The Brownings say its never too late to tackle your FIRE number. You can start FIRE at 40 and retire at 50, or you can start at 50 and retire at 60, says Christina.

When you look at the time horizon that people are living now, they're living into their 80s and 90s and I don't think it's ever too late, she says.

2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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How This California Couple Retired In Their 40s Using FIRE - Benzinga

1. To make money, you have to worry about money.

"The more time I spend thinking about money, the less time I have to think of the next great idea that can make money. Overthinking always limits creativity.

Instead, I just trust my gut. When something doesn't feel right, it's usually for a good reason, even if I can't put my finger on why. Your gut is a collection of past experiences and mine has never steered me wrong!"

Barbara Corcoran, founder of The Corcoran Group, podcast host of "Business Unusual," and Shark on "Shark Tank."

"Don't be romantic about how you make money. Whether you're an entrepreneur or an employee, your current revenue stream isn't necessarily how you'll make money in the future.

When you climb the ranks, it's easy to lose creativity and that desire to change the status quo until you're replaced by someone who still has those things. Never let money make you comfortable. Always be innovating and thinking ahead."

Gary Vaynerchuk, founder and CEO of VaynerX; five-time New York Times bestselling author of "Crushing It!"

"Many people will tell you to invest in the stock market and let compound interest turn your paychecks into millions. The problem with that advice is that you have to work for 40 years.

Instead, invest in yourself by learning a skill you can monetize. If you're always sharpening new skills, you'll make incrementally more money. That's real compound interest. You can't save your way to wealth, but you can educate yourself there."

James Sixsmith, founder and CEO of Trade Context, co-founder of SpeedUpTrader, and former professional hockey player. Follow him on Instagram and LinkedIn.

"Companies like Blockbuster, Pets.com and MySpace were household names until they crashed. In contrast, many that Wall Street dismisses outperform the market significantly.

The right investments are the ones that genuinely interest you, whether that's Bitcoin, stocks or any other asset classes. If you talk to people, read the news and actually use the products you invest in, you'll have a better understanding of where your investments should go than the 'experts' do."

Dan Schatt, co-founder and CEO of Cred. Follow him on LinkedIn.

"An annuity salesperson convinced my client to sell his Tesla stock because of market volatility, so he gave up control and liquidity in exchange for 'security.'

But when he lost his job, he had to pay an early withdrawal fee to access his money. His $500,000 annuity was only worth $300,000, compared to the $3.2 million his stock would be worth today.

The salesperson didn't disclose that he owned stock in the annuity and was working on commission. Always question others' interests and how they align with yours. Are they getting a commission, or do they only make money when you do?"

James Daily, founding partner of Daily Law Group. Follow him on LinkedIn.

"The highest rate of return on your money is not in a house or savings account, where it will sit and get eaten by inflation. Invest in your primary asset: Yourself and your business, if you own one.

This multiplies the abilities that create your income, so you can achieve financial independence. When your money is still, it's ill. When it's flowing, it's growing."

Corrie Elieff, co-founder and chairman at YESA; founder of Cardone Canada.

"Don't let the idea of starting a business or even a side hustle intimidate you; the barrier to entry in business is lower than ever. Using tools like WordPress, PayPal and social media, you can create a website, advertise with how-to content and accept payments for free.

As long as you know how to sell and you're solving other people's problems, all you need is a little creativity and willingness to take risks and outwork everyone else."

Bedros Keuilian, founder of Fit Body Boot Camp. Follow him on Instagram, Facebook and YouTube.

"I do my best thinking between midnight and 3 a.m., when I'm free from dinging email and text alerts. Figure out when your mind works best, capitalize on it, and don't feel bad if it's not during the standard 9 a.m. to 5 p.m.

"The world's wealthiest people didn't become successful because they were coloring inside the lines or doing what everything thinks they're 'supposed' to do."

Michelle Luchese, co-founder and chief product officer of wedding band company Manly Bands. Follow her on LinkedIn.

"Real wealth isn't just about having a lot of cold, hard cash. It's also proportionate to your happiness, health and overall quality of life.

So don't just focus on what's in your bank account. Set aside time to take care of your mind and body. Stick to doing things you're passionate about. Surround yourself with positive energy. When you do all these things, money and success will eventually follow."

David Hoffmann, co-founder and CEO of GlobalTQM, a division of the international trade company Global Regency. Follow him on LinkedIn.

The Oracles is a mastermind group of the world's leading entrepreneurs who share their success strategies to help others grow their businesses and build better lives. For more, follow The Oracles on Facebook, Twitter, and LinkedIn.

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9 money myths we hear all the timebut can actually hold you back from getting rich - CNBC

I implore every undergraduate and high schooler I meet to live like a student as long as they can bear it.

Remember those days? As an undergraduate, it was Weet-Bix for dinner and Carrington Blush for celebrations. My brown 1988 Mitsubishi Magna was considered luxury, saving me a hilly 5km walk to uni. House sharing was a given, not optional.

Since I was 10, Ive saved half of every dollar Ive earned. Ive done so by living cheaply. While I also had luck on my side, its part of how I could afford to buy my first property at 19 as a second-year engineering student. Without it, I doubt I could have reached financial independence at 31.

For a decade Ive been delivering financial education through my business and now my book, both called Money School. My students have a common goal: financial independence. The idea behind financial independence is you own assets like bonds, shares and property. These assets pay you an income such as coupons, dividends and rent. That income covers your living costs, so you no longer need to earn a wage unless you want to.

Your financial wealth converts you from time poor to time rich. You choose if, when, where, on what and with whom you work, giving you the final say in how you spend your days. Great news! You only need follow three rules to improve your financial health: save, buy assets and avoid bad debt.

Financial independence is desirable but not many people make it there. Often, its for reasons we cannot control but there is one thing we can avoid: comfort creep.

Were wired to spend everything we earn. Our brains want us to spend every dollar in the bank to get a hit of feel-good chemicals. For example, I rarely eat Weet-Bix for dinner these days. At 37, my expectations are higher. Food, alcohol, entertainment, car, accommodation in every aspect of my life, I want it tastier, healthier, safer, more eco-friendly and swankier than I did as a student.

Thats comfort creep spending. Your costs go up, but your happiness reverts to the same level

It will come as no surprise that my costs have risen commensurately. In some cases, thats good. Healthier food, less sugar in my wine, a more robust car: these are justifiable, even laudable, but only to a point.

Somewhere between living the poverty-stricken- student lifestyle and luxury, your spending rises to reach a perceived better quality of life without delivering a permanent benefit to your wellbeing. From that point on, youre in comfort creep territory. Its insidious.

That extra comfort is akin to a drug. It starts out sensational, like the first time you get upgraded on a flight. The legroom, cloth napkins and attentive cabin crew feel indulgent. You revel in the experience. Next time, youre back in cattle class. Economy was acceptable pre-upgrade; now its hideous. For a split second, you even consider forking out the extra dosh for a business class ticket. You need that hit of luxury each time. Anything less is deprivation.

If common sense wins the day and you resist the extra spend, I have good news: if you opt to fork out extra for every flight, it eventually stops feeling special. It becomes business as usual. Spending the extra money on business class just means youre as happy as you were in economy to start with.

Thats comfort creep spending. Your costs go up, but your happiness reverts to the same level.

As I tell my students: of all the things that affect your financial wellbeing your wages, your investment choices, what the economy is doing, your mindset, even when and where you were born comfort creep is one thing over which you have a lot of control. So, control it.

Yes, I know commerce is conspiring against you. It used to be much more difficult to part you from your hard-earned cash. Before Eftpos reached Australia in 1984, you had few spending options. There was the cash in your wallet. You could write a cheque. If you had one of those new-fangled credit cards, the cashier could take its details using a beast of a thing called an imprinter. Somewhere between a week and 21 days later, the charge would appear on your credit card statement. Which you got via snail mail.

Thirty-six years later, frictionless is the name of the transaction game. Forget wallets your cash departs via a wave of your card, phone, watch or even a ring. This is good news for the people selling you stuff because they can sell you more. They only need to grab your attention for seconds. A few clicks are all it takes for little drips of money to start leaving your account each month and landing in theirs.

And why not? you might exclaim. I deserve it. You wont get any argument from me on how worthy you are. You probably worked for your cash. Years of slogging away, every pay increase earned in sweat. I work hard so I can enjoy myself, you might say.

If you get to financial independence, youre free to choose how you spend your time

True. But unchecked comfort creep is wasteful. Youre wasting your time. You had to earn every dollar you spend. Would you work for free for hours, maybe even days or weeks? Heck no. So dont waste your time by carelessly wasting your dosh for little to no benefit.

Not sure how much comfort creep is costing you? Download last months transactions and add up any spending that fits your criteria. These transactions are a great place to start when youre looking to cut comfort creep spending.

Youre also wasting resources. Yours and ours. Youre wasting the stuff were all supposed to share. Youre using more raw materials, more energy and more human effort than you need to. If youre serious about sustainability, youll sleep better knowing youre cutting wasteful spending wherever you can.

The more you cut, the more you can save. The more you save, the more assets you can buy. The more assets you buy, the more secure your future will be. And if you get to financial independence, youre free to choose how you spend your time.

So, cut the comfort creep. Youre worth it.

Lacey Filipich is the author of Money School, out 18 February through Penguin, $29.99.

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Comfort creep: the one aspect of your financial wellbeing you can control - The Guardian

The Duke and Duchess of Sussex took the whole world by surprise when they announced that they would seek financial independence from the British monarchy. In their announcement, they clarified that this meant giving up the part of their income that comes from the British taxpayers.

But thats not the only way the royal family as a whole makes its money. The British royal family is essentially a very wealthy landlord. Its members arent allowed to work aside from their official duties, but they can collect rent and profits from the numerous estates that are historically affiliated with them. These inherited estates form part of the Queens net worth, which, in 2019, was estimated to be about 370 million.

It also makes an income from two other massive real estate portfolios, called the Duchies of Lancaster and Cornwall. These include castle ruins that are now tourist attractions, but also whole villages, commercial real estate, and a cricket stadium in London. These portfolios made just over 20 million each in 2019; the money from the Duchy of Lancaster goes to Queen Elizabeth, and the Cornwall income goes to Prince Charles.

The income Harry and Meghan receive from British taxpayers is where things get tricky, and it represents a sort of pact between the British public and the monarchy. The British monarchy once owned a lot of the iconic real estate that draws millions of tourists every year the Tower of London, Windsor Castle, and Buckingham Palace, to name a few.

King George III handed these properties over to the government during his rule, and in exchange, the royal family receive a percentage of the profits from these properties in taxpayer money every year. These properties are known as the Crown Estate, which has grown to be an extremely profitable portfolio that includes commercial real estate in London.

In exchange for that money, the royal family members are beholden to strict rules that dictate how they earn income and how much access they give to an aggressive press corps. They also have to follow standards to maintain the familys brand and image so they can continue to draw tourists and tourism money to the UK every year.

Because royals arent allowed to work outside of their official duties, and because a lot of the real estate the family earns income from doesnt actually belong to it, the illusion of the royal familys private wealth is greater than its actual net worth. Queen Elizabeth, the richest royal family member, is the 356th richest person in the UK, for example.

In that regard, the couples Megxit may have been a financially savvy move. Theyre able to hold on to their private inheritance and possibly also the income from the Duchies, while having the freedom to make income outside of this model by breaking free from the rules that come from taxpayer funding.

You can find this video and all of Voxs videos on YouTube. And if youre interested in supporting our video journalism, you can become a member of the Vox Video Lab on YouTube.

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How the British royal family makes its money - Vox.com

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Vincenco Giovannini/Wikimedia Commons

The Bureau of Labor Statistics released its jobs report this month, and the numbers, again, are pretty good: the unemployment rate is at 3.6%, while the youth unemployment rate is around 8%. The numbers looked good to us. But to our winter intern, Bianca Giacobone, they seemed astonishingly low. That's because she is from Italy, where the economy has been stuck for decades. So we asked her to write about what it's like to be young and Italian these days.

Sometimes, when people ask me why on earth I left Italy, a beautiful country I'm lucky enough to call home, I drop a few numbers. Italy's youth unemployment rate the rate of people under 25 years old looking for a job and not finding it is 28.6% as of the last quarter of 2019, according to Eurostat, the European Statistical Office. By comparison, in November 2019 the Eurozone's youth unemployment rate overall was 15.6%. Here in the U.S. it's about 8%.

Perhaps more worryingly, the Italian rate of people aged 20-34 neither in employment nor in education and training, the so-called NEET rate, was 28.9% in 2018. It's the highest NEET rate in the Eurozone, which has an average of 16.5%. To put that more plainly, almost 1 in 3 Italians under 34 aren't really doing anything at all.

"The Italian economy is not growing," says Carlo Cottarelli, an Italian economist and former director of the International Monetary Fund. "The Italian per capita income is the same as it was 20 years ago. In terms of economic growth, this past decade has been the worst since 1861."

Like many economists, Cottarelli has a long list of reasons why Italy's economy is stuck, and they start with Italy's adoption of the common currency in 2002. "We didn't handle the transition to the Euro well," he says, explaining that a common rate of exchange meant Italy couldn't lower prices to compete with Germany. "Since we couldn't devalue, we lost competitiveness."

Then there are the usual suspects: excess of bureaucracy, one of the slowest civil justice processes in Europe, high levels of tax avoidance, high levels of corruption, a crippling economic division between North and South, and one of the lowest fertility rates in the world. "All these things, including an underfunded public education, condition the country's growth."

In the long term, high youth unemployment can lead to loss of skills and human capital. In the short term, youth unemployment shapes the lives of young Italians dramatically. For example, people tend to live with their parents longers 66.1% of people aged 18-34 still lived with their parents in 2018, while the percentage in United States is roughly 30%. Young Italians struggle to reach financial independence. They have children late, which contributes to Italy having one of the worst fertility rates in the world. And, then they leave, as I did.

Many Italians blame the education system, which is chronically underfunded, and favors theory over practice, leading to a very slow school-to-work transition, and to a mismatch between what young people graduate in and the skills needed to find work.

Graduating with degrees in Science, Technology, Engineering or Mathematics (STEM) leads to better employment prospects. But my father's reminder that it would be best to study engineering fell on deaf years when I was 19 and fresh out of high school. I enrolled in the Humanities, as many other Italians before and after me.

Anecdotally, I can say that the overwhelming majority of the friends and acquaintances living back home, all over 25 years old, do not have jobs and/or are still living with their parents. And that around 20% of my small high school graduating class, me included, is now living abroad, and that five out of five of my cousins under 30 years old are not working in Italy at the moment. Friends have gone to the United Kingdom, Germany, Portugal, South Africa, and the United States, among many others. They're pursuing Phds, working as managers, servers, engineers, professors, chefs, and architects.

We all look longingly back at our country, wondering when and if there'll be a good moment to go back, and have a job and a career comparable to the one we can have abroad. Because, as most of the world knows, Italy is a beautiful country, where the coffee is cheap, the food is good, holidays are long, education is mostly free, and there is universal health care, despite all the economic trouble.

Davide Fikri Kamel, who comes from Corvino San Quirico, a bucolic village in the north of Italy, and works a well paid job with Amazon's digital marketing division in New York City, is used to his colleagues' surprise at his desire to leave Italy. "Every time I show pictures and videos of my village, to my coworkers and friends they're like, 'Why on earth would you move out of this dreamy, heavenly place?'" he says. "But you don't know what the struggle is, you don't know how the Italian education system is, you don't know what the job situation is."

"Some 2 million young Italians many of them educated and skilled have left Italy since 2008," says Nicola Nobile, an economist at the research and analytics consultancy Oxford Economics. That's a lot in a country with a population of about 60 million. Immigration, which could help counteract the low fertility rate, is relatively recent in Italy under 3% of Italy's population were immigrants before 2000, a number that now lingers around 10% and so far it's not well received.

"A country that cannot keep its youth is not forward looking," says Nobile. "There are more older voters than young, so politicians tend to focus their politics and economic incentives on them. It's a country for old people."

I am reminded of that every time I go back home to Milan and go for a walk. People around the streets, in bars, shops and cafes, are strikingly older than what I'm used to now that I live in New York.

I like to think I'll be back. I've written down a ten year plan. I'll work for a few years abroad, here in the United States, or somewhere in Europe, and build my career. Then, when my resume is appealing enough, I'll move back and be of use. It's a plan that comes less out of patriotic duty, and more out of a refusal to accept displacement. Yes, that's my dream, to work in the country where I grew up.

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Ciao, Italia: Why Italy's Youth are Leaving in Droves - NPR

Digital personal finance company SoFi is partnering with Edmit which is a company that helps families make smarter financial decisions about college. Through the partnership, it will equip college-bound students and their families with the tools and resources needed to make the college selection and financial aid process easier, personalized, and transparent.

The registered SoFi members will now have complimentary access to Edmit Plus, which considers a students academic merits and family finances to provide data-driven recommendations on college affordability and return on investment. And members can enter their academic profile and receive unlimited college-comparison reports consisting of a personalized cost of attendance, including potential merit scholarships, projected monthly loan repayment amounts, and prospective post-graduation earnings based on profile and major. And this information along with other factors is also captured in an overall financial grade that allows members to easily compare schools to each other.

SoFi was created to help ease the burden of student debt that is stifling a generation in this country, said SoFi CEO Anthony Noto. We believe it is imperative to understand early on the significance of taking out a responsible amount of debt for college. We are excited to partner with Edmit to help college-bound students and their families make the most informed decision on where to attend college and how to finance the journey, so that they can achieve financial independence.

Edmit is thrilled to partner with SoFi to offer their members the necessary tools and guidance needed to assist their college-bound students in making the best higher education choices possible, added Edit co-founder and CEO Nick Ducoff. With this partnership, we are committed to helping the next generation set themselves up for financial success after graduation.

Along with the addition of Edmit Plus, SoFi membership also offers benefits, including access to financial planners, complimentary career services, and networking events.

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SoFi And Edmit Partnering To Help College Students With Their Finances - Pulse 2.0

By John Harrington, Thomas C. Frohlich and Hristina ByrnesFebruary 19, 2020 11:05 am

Tying the knot is for many people one of the most prominent milestones of adult life but not for all. While marriage provides many advantages such as tax breaks fewer Americans are choosing to get married. Those who do choose to stay single, remain single longer compared with previous generations. Many other Americans are single for other reasons.

There are more than 160 million single Americans divorced, widowed, separated, or those who have never married or approximately 51.0% of the U.S. population. Most of this group consists of people who have never been married.

To find the best city for singles in every state, 24/7 Tempo reviewed for all U.S. metro areas the percentage of the adult population that is single, the concentration of businesses such as restaurants and bars, and income levels. The best cities for singles are home to a relatively large number of unattached people, have plenty of amenities supporting social interaction, as well as a local economy that is conducive to financial independence.

Specifically, single people in these cities tend to be the majority of the adult population. The cities where this is not the case, but are still considered best for singles, are either especially affordable, or have high concentrations of social venues such as bars and restaurants. Of the 50 best cities for singles, 37 have a cost of living that is lower than the average nationwide.

Since the 1950s, the age at which people have taken their marriage vows in the United States has steadily risen. Census Bureau statistics note that the median age of first-time brides and bridegrooms hovered around 20 in the 1950s. Now, that benchmark is nearly 30 and it seems to be gradually going up. Here are the states where people marry older.

Click here to see the best city for singles in every stateClick here to see our detailed methodology

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The Best City to Be Single in Every State - 24/7 Wall St.