Category Archives: Financial Independence

Quiet pilots about football because we see mutual love and fantasy leagues that Spiezio. And receiver Roy you know I just always always on the net and controversy in big plays to talk about. 8713 thirty KN SA has got Borger Stephen Ted in the morning thank you for doing this in here on. Monday July 3. Many of you out there probably taking a day off. 648 now Wall Street into the second quarter was slight gains industrial stocks and consumer focused companies led the gainers. The S&P 500 index rose three points Friday the Dow gained 620. NASDAQ lost three points. And benchmark US crude oil rose slightly above 46 dollars per barrel now predict things. President drugs we continue targeting his media. Music and fireworks celebrations step for downtown Wichita through the block heads up your next paycheck would be smaller at Kansas income tax hike. It. And traffic so far this morning things looking pretty good out there. He said people may be taken the day I'm myself I'm not seeing and as much traffic volume at this time as I usually do just in the morning quick break the sport. Yeah and I was nothing there taking a look at the cameras just. No there's plenty of areas where there's some traffic but it's just not nearly as heavy as easily as itself had very well that being just. Fewer people on the roadways this morning not seen any big traffic types but remember if you do. It was it was called track Scotland that number 86913. Thirty. Traffic updates cape and it's as radio I'm jazz chambers I partly sunny today with a 30% chance for rain. And a high of ninety degrees 70% chance for showers and storms tonight. You overnight lows seventy. Answer Tuesday to borrow Independence Day in 60% chance for rain with a high of 86 degrees. Now mostly cloudy cold and seventy degrees. Are you ready for golf boating and all the other outdoor activities that come with a time of year. Don't forget your hat for ultimate sun protection goes through the best election in two out of the best service at pat and Jack at the clock tower in the Leino had meant Jack. It's 649 alma at 650 with Stephen Ted Silicon Valley investor. Dave McClure says he is sorry for making inappropriate advances. Towards several women and workplace situations and is giving up leadership of the venture capital fund. He co founded. 500 startups. But clues apology title I'm a creep I'm sorry. Follows a New York Times report on sexual harassment in the tech industry. That described offensive behavior by McClure and other prominent venture investors. Reports of sexism in the industry are not you but more women are speaking out. And telling their stories. The heat is killing cows in California so many of them. The disposing of the bodies is a problem central California's largest rendering plant. Is overwhelmed by the number of cows that died during a June heat way national officials are allowing. Dairy farmers to bury or compost hundreds of carcasses. The unusual run of heat last month including nine straight days of triple digit temperatures. And a mechanical malfunction that baker commodities and contributed. To the overload at the plant tool. Lost of accounts in the middle of dual use oak apple aren't used to that carcasses. 651 now Steven and Ted and a financial Independence Day let's find out more was done grants the FB the money track. Will celebrate the nation's independence tomorrow on July 4. We commemorates the adoption of the declaration of independence 241. Years ago in 1776. The thirteen American colonies finally declared that they were a free nation we are no longer a part of the British empire. Independence carries with it a lot of freedoms but it also has a tremendous amount of responsibility. As does. Financial. Independence. Financial independence is something that many of us strive for. That means we worked to sever the dependency bonds that highest to our jobs because of our expenses mortgage debt. Retirement savings plans and other basic expenses meet or exceed our income up. So we need to continue to work to keep up with those bills the only way to stop that cycle is to celebrate financial independence. Is to grow our asset base higher than what is needed for us to spend. How can you get to this point on there are several solutions version could experience a windfall of cash. And inheritance a sale of an appreciated business or real estate asset. Can't propel you into financial independence. Hard work that has financial reward with no earnings ceiling may take a worker there salespeople. May exceed sales goals and grow and asset base that provides more income than what is needed to support a lifestyle or you could create several streams of income investments a business too realistic and then finally you could work hard and spin less than you may. Allowing yourself to. Build up enough to cover your lifestyle expenses those are financially independent realize that they need to live well beneath their means to reach their goal. They learn to accept delayed gratification. And they keep their income moving forward. As they secure higher income they continue to hold back on their lifestyle. And will only increase spending when they are secure that they will not slip backwards financially. Risk management is a key to independents as well insure your financial future by covering for things. That are out of your control men of course if you have any questions you can give me a call. 6342222. Man happy fourth of July. Thank hit on today's Monday July 3 and a on the ads in yesterday's high by the it was ninety degrees and Wichita on normal on 91 and on this date in 1980. The high image dollar reached 101. The and that was a first of eighteen consecutive days. Where the temperature exceeded 100 degrees in which it out I'll be one of the coolest days that we would see the course of the next three weeks it would become the second longest streak of 100 degree plus days in Wichita as climatic history. The record is too funny. Set from August 7 to August 26 1936. In the middle of the dust bowl and preparation people and no air conditioning had no. Art in his. Tough times you just broiling for three weeks of summer of 1980 was a bugger it was bad. I'll never forget it help. And I hit some bad things happening to me at work. Adamant now abs yeah that was December. And think we're going to work and a just completely crummy summer. 1980 OK today as we mentioned this with the Tom littler. Littler commodities that today is national eat beans today. And we probably should unsure sort of survey about our favorite beings as navy beans and mark and it. Pork and beans pork and beam all green beans with some onion and some. In some bacon and there. Where is not my wife loves fresh green beans the Hugo. Extreme danger downright pretty tasty yet. How about well my grandmother made written great rescue would baked beans. With chopped pineapple and little sausage ball pool. That's as good as tasty. And goals always to get as many sausage balls loaded in the mind are you ago must act my helping as possible. On a dirt to invite dad's favorite saying because he he really couldn't swear he'd been raised by Methodist ministers. Three regions where much. But if you that's embody wishful you know once it's in there that are full of baloney. But the full of people Baines the other. I hope no one thinks we're probably did. National eat beans it may literally be at some point in sixty day I had both safe coming up at 7 o'clock McCain is this morning news was Steven's dad that. A building fire in downtown which is so we're gonna talk about that all the news coming up Stephen dead on tape and assess.

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Steve and Ted: Independence Day and Financial Independence Day - KNSS

On Tuesday we proudly celebrate Independence Day. We celebrate the signing of the Declaration of Independence which proclaims that all men are created equal, that they are endowed by their Creator with certain unalienable Rights That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed

In a time of kings and monarchs it was a bold declaration to state that governments derive their powers from the consent of the governed. It was equally as bold to define the proper role of government as securing a persons unalienable rights to Life, Liberty, and the pursuit of Happiness.

In declaring their independence from England the colonies had several complaints against King George III and the State of Great Britain; the one we all remember is taxation without representation.

Under British rule the colonies operated under an economic and trade system known as mercantilism. Leading up to the American Revolution, British mercantilism required that all goods and trade imported or exported through the colonies had to travel on British ships and through British ports. In this way those goods and trade could be taxed and levied with tariffs and duties.

The most famous of the taxes Great Britain levied on the colonies were the Stamp Act of 1765 and the Tea Act of 1773. The Stamp Act required that all legal documents and printed material must bear a stamp provided by commissioned distributors who would collect the tax in exchange for the stamp. It applied to wills, deeds, newspapers, pamphlets, and even playing cards. The Tea Act imposed duties on imported tea. It was an effort to rescue the financially weakened British East India Company. The Tea Act led to the famous Boston Tea Party.

Smuggling was a big problem for the British Crown in the colonies. The colonies smuggled goods in and out to avoid the taxes and duties that the British Crown was able to levy under mercantilism. For much of the colonial period the Crown had a policy of salutary neglect which meant that the trade laws which most hurt the colonies were not enforced. However, that changed with the implementation of the Stamp and Tea Acts which helped spark the American Revolution.

It is important to understand our history and heritage, including the principals set forth in the Declaration of Independence. As the British statesman and philosopher Edmund Burke who served in the House of Commons and spoke out in support of the American colonies in their dispute with King George III said, Those who dont know history are doomed to repeat it.

In the Declaration of Independence Thomas Jefferson and our founding fathers established that the new United States would be based upon the principals that our liberties and rights are not granted by government, but are instead unalienable and that government derives its powers from the consent of the governed, not that the governed are granted rights from the government.

As we watch and listen to the debates on healthcare legislation, tax policy, financial and other types of regulation, the debt ceiling, the federal budget, etc., take place over the next several months, try to think about those issues in the light of the principals set forth in the Declaration of Independence. For example, how will a rise in the debt ceiling and a corresponding increase in the federal debt help to secure our unalienable rights to life, liberty, and the pursuit of happiness? And does the passage of any proposed piece of legislation or implementation of regulation serve the government or the governed?

I suspect our founding fathers would have a vastly different view of our laws and government than is common place in our day.

Barry Nielsen has worked in capital markets for over 20 years with a focus on fixed income portfolio and risk management. He has an MBA from George Mason University and holds the Chartered Financial Analyst designation. He currently works for Opportunity Bank of Montana.

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Financial matters: American independence and economic freedoms - Helena Independent Record

Kevin Godbold | Sunday, 2nd July, 2017

Many people dream of retiring early with enough money to be able to do as they please for the rest of their lives. Turning that dream into reality is possible, as long as you take it seriously and commit to taking action. I reckon that if you take these five steps you?ll be well on your way to creating the conditions necessary for you to retire early and be financially secure. It probably won?t be easy to achieve, but with persistence and determination, I?m sure you can make it happen.

1. Believe you can do it

Many fail to achieve

Many people dream of retiring early with enough money to be able to do as they please for the rest of their lives. Turning that dream into reality is possible, as long as you take it seriously and commit to taking action.

I reckon that if you take these five steps youll be well on your way to creating the conditions necessary for you to retire early and be financially secure. It probably wont be easy to achieve, but with persistence and determination, Im sure you can make it happen.

Many fail to achieve financial freedom because deep down they dont really believe they can do it, so they end up fighting against self-sabotage.

Accumulating a fortune seems like a daunting task when you are at the beginning of the journey, and I reckon many people have a tendency to give up in a thousand little ways along the way. Perhaps you end up blowing your savings on that holiday of a lifetime. Perhaps you keep on doing that kind of thing. If youre striking for early retirement, thats self-sabotage.

To be successful, I think step one is to adopt a mindset of belief and determination that will guide you on your journey and help you make better choices along the way.

With your can-do mindset in place, step two is to grab your finances by the whatsits and get in control of debts and outgoings with the aim of living below your means. Its a well-touted concept, but it works.

Spend less than you earn and cultivate a saving habit. Plan to save, and work your plan as hard as you can. If you do that, the magic starts to happen.

This is like step two, but magnified then put into action and underlines just how important control of yourmoney is. With your domestic finances working better, step three is to really toughen up and act decisively, bearing down on personal outgoings and making hard choices. Hone the management of domestic finances until they work like a well-oiled machine so you can squeeze every penny possibleout of the leaky bucket and direct it towards your dream of financial freedom.

Im not suggesting a life of total abstinence and austerity, just a measured, balanced and controlled approach to your finances with you firmly in charge. Every pound counts because those pounds will compound over time into many more pounds.

Now that youve fixed all the leaks in your domestic budget step four is to direct your creativity to earn more income. Direct the surplus you earn straight to building up your savings and dont be tempted to self-sabotage by raising your standard of living and spending if you are already enjoying a happy and fulfilling lifestyle.

After applying yourself to building up your saved capital, step five is to make that money work hard for you by looking for ways to compound it, such as investing on the stock market.

Over time, shares have outperformed all other asset classes and you can get involved by using such vehicles as low-cost index tracking funds, managed funds, directed stock-picking services such as those offered here at the Motley Fool, or by embracing the concept of private investing completely and picking your own shares and investments.

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5 powerful steps towards financial independence and retiring early ... - Motley Fool UK

Financial independence might seem like an impossible dream for many, but if you put in place a set saving-and-spending plan, and stick to it, you will be surprised how quickly financial independence can become a realistic goal.

A strict budget and savings plan is the first stage of building your wealth. The next step is investing to make your money work harder for you.

The great thing about investing is that your money can work for you even when you're asleep. Your earnings ability will no longer be constrained by your working hours. Instead, you'll be able to benefit from the profits of other companies and other workers.

Dividends and dividend stocks play a crucial role here. Many studies have shown that dividends provide the bulk of investment returns for investors over the long term and by reinvesting your dividends you can achieve investment returns that are far greater than the market average.

For example, if you have a 1,000 investment in a company that yields 5% per year, you would receive 50 per annum in dividends, much more than the current level of interest available on most savings accounts. If the dividend payout remained unchanged for 10years, and for argument's sake, the share price also remained unchanged, without reinvestment you would receive a total of 500 over the life of the investment, a return of 50%.

However, if you were to reinvest these funds at the end of the period, your investment would have grown to 1,551, an extra profit of 51.

This basic example illustrates just how powerful the strengthof dividend reinvestment can be. To add to the example, let's say the value of the share in question rose by 5% every year. This capital growth combined with dividend reinvestment makes a super-potent combination. According to my figures, in this example, if the dividend is paid only once a year, within a decade the combination of capital gains and income will have turned theinitial 1,000 investment into 2,236. Most companies don't pay out the same dividend every year. They try to increase the per-share dividend by at least the rate of inflation.

So, let's assume that the company in our example increases its dividend payout by 5% per annum. In this scenario, assuming dividends are reinvested, a steady share price growth rate of 5% per annum and dividend growth, 1,000 will become 2,407 by the end of the decade sample period, almost 1,000 more than the example with no dividend reinvestment.

These are only simple examples but they clearly illustrate how important dividends are and how easy it is to build wealth by concentrating on the power of dividends and dividend reinvestment. If you're looking to achieve financial independence, this is one shortcut that you definitely shouldn't avoid. You should try to take as much advantage of the power of dividends as possible.

Dividends are essential if you want to achieve financial independence. If you're looking for more tips on how to improve your financial position, the Motley Fool is here to help withthis brand new free report titled The Foolish Guide To Financial Independence,

The report is packed full of wealth creating tips and,to help on your way, isentirely free and available for download today.

So if you're interested in exiting the rat race and achieving financial independence, click here to download the report.

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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The easy way to financial independence - AOL UK Money - AOL.co.uk - AOL UK

FORT LAUDERDALE, Fla., June 28, 2017 /PRNewswire/ --Seven in ten Americans believe that being debt-free is an essential component to financial independence. That may explain why only 22 percent believe they've achieved independence themselves. With average consumer debt levels at record highs, true financial independence is often just out of reach for millions of households.

Consolidated Credit wanted to know how Americans felt about financial independence in today's financial landscape. They polled over 1,100 consumers who visited their website and/or social media channels and asked them for their perspectives. Almost nine out of ten (88%) respondents said the biggest roadblock to achieving financial independence was paying off credit card debt.

Coming in next was student loan debt with 21 percent of people stating that it was holding them back. You can read full results in the Financial Independence and Debt Infographic.

Consolidated Credit asked what the American Dream is and how close people believed they were to achieving it:

"The American Dream is available to anyone willing to put forth the effort to get it. You can own a home, attend school and get a good education. Jobs are plentiful if you don't mind working from the bottom up."

For others, the current financial environment holds them back from the classic vision of financial independence:

"I have given up on the America Dream. Despite being highly skilled, I can't seem to get out of the hole I am in. The way it was for my parents is not how it is today. I have to settle for less."

For the most part, people believe the American Dream is still attainable. It just takes more work today to get there than it did for previous generations. Read more perspectives about financial independence and the American Dream on Consolidated Credit's new website feature "Personal Perspectives on Financial Independence."

About Consolidated Credit: Consolidated Credit is one of the nation's largest credit counseling agencies. In 24 years, they have helped over 6.5 million people overcome challenges with debt and other financial issues. Their mission is to assist families throughout the United States to end financial crises and solve money management issues through education and professional counseling. Visit ConsolidatedCredit.org for more information.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/what-financial-independence-really-looks-like-in-2017-300480784.html

SOURCE Consolidated Credit

http://ConsolidatedCredit.org

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What Financial Independence Really Looks Like in 2017 - PR Newswire (press release)

Investing in companies with the ability to deliver rising dividends over many years can be a powerful way to build wealth. Share price gains often follow dividend growth, creating impressive total returns.

What's more difficult is to find companies with high yields that still have growth potential. In today's articleI'm going to take a look at two very different dividend growth stocks, each of which offers a dividend yield of about 5%.

Pub group Greene King (LSE: GNK) appears to be making a decent job of running a fairly traditional business. Sales rose by 6.9% to 2,073m last year, while the group's underlying operating profit climbed 4.9% to 392.2m.

Adjusted earnings per share were 1.3% higher at 69.9p, while the dividend was lifted 3.6% to 32.05p per share for a yield of 4.7%. Return on capital employed, a useful measure of profit for a business with lots of fixed assets, was unchanged at 9.4%. That's respectable, if not spectacular.

Greene King shares have traded unchanged since the figures were released this morning, but there was some bad news. The group's operating margin fell by 0.3% to 18.6%, due to cost pressures and the brand conversion costs resulting from the acquisition of Spirit pubs.

The firm was also forced to book an impairment charge of 58.6m against the book value of its pubs, due to "changes in the local trading environment". A further 34.9m of impairment was recorded against sites that were closed or sold last year. These suggest to me that market conditions remain tough for pubs.

However, Greene King's underlying business appears to be trading well and delivering fairly stable profits. For investors seeking income, I think that the forecast P/E of 9.7 and prospective yield of 4.8% could be an attractive long-term entry point.

Air Partner (LSE: AIR) may not be a name you're familiar with. It's a specialist aviation services company which provides charter services to governments, corporate customers and high net worth individuals. The group also includes an aircraft re-marketing business and consultancy services.

The firm is listed in the FTSE Fledgling index and currently has a market cap of just 61m. But it's not a fly-by-night newcomer as it was founded in 1970 and has been public since 1989.

Recent performance has been strong. Underlying pre-tax profit rose by 17% to 5.1m last year, while underlying earnings rose by 10% to 6.5p per share. Shareholders enjoyed a 7.2% dividend hike last year, giving a total payout of 5.2p per share. That's equivalent to a 4.6% yield at the current share price of 114p.

Air Partner has made several acquisitions over the last few years. These are helping to broaden the range of related services it offers and may deliver more stable profit growth. Although the company's profits are likely to slump during recessions, its long history suggests to me that this business has staying power.

Analysts covering the stock expect underlying earnings to rise by 20% to 7.8p per share this year, putting the stock on a forecast P/E of 15 with a prospective yield of 4.7%. I believe this business could be a long-term growth story, and is worth a closer look.

Investing in stocks such as Air Partner and Greene King could help you build a stock portfolio to fund your retirement. But if you really want to beat the market and retire early, I believe you need a clear plan.

In The Foolish Guide To Financial Independence, our investment expert Mark Bishop explains how he believes you shouldinvest to maximise your chance of an early retirement. Mark's tips include stock suggestions and ideas to help boost your saving power.

This exclusive report is free and without obligation. To download your copy today, click here now.

Roland Head owns shares of Air Partner. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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These 5% dividend yields could help you win financial independence - AOL UK

It is not often that people become financially independent a mere 15 years after starting their career.

Although he didnt know it right away, Jim Collins did just that. In 1989, he became financially independent, only a decade and a half into his profession.

Jim Collins is now the author of A Simple Path to Wealth and also has his own financial blog, jlcollinsnh. He began his blog as a way to share different financial strategies with his daughter, family, and friends, that may help them become financially independent as well.

Through the past six years that Jim has had his blog, he has met hundreds of like-minded people. He has also expanded his blog to an annual trip to Ecuador, which he likes to call a Chautauqua a place where people come together to share ideas, concepts, and companionship.

In todays podcast, I will be talking to him about how he did it, his blog, and his new book, A Simple Path to Wealth. I also ask him for some tips on how we can all achieve financial independence.

Heres the podcast audio, followed by a transcript of the interview:

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JL Collins' Tips for Achieving Financial Independence - The Dough Roller

For federal employees accustomed to elected leaders focused on firing feds faster and bashing their benefits, heres a little something to cheer.

Bipartisan legislation in the House and Senate would update the Thrift Savings Plan (TSP), a 401(k)-type program for federal employees, by allowing them greater flexibility in withdrawing their funds.

This might not sound like much compared to news about federal retirement cuts in President Trumps proposed fiscal 2018 budget and the movement to undermine civil service protections. Yet this little something could make life easier for the 5 million people with TSP investments worth $490 billion.

Meanwhile, Democrats have escalated opposition to the planned cuts, with more than 100 House members opposing President Trumps proposal to gut pensions. Then Trump described workplace protections as outdated laws, at a White House East Room signing ceremony Friday for legislation that now restricts civil service safeguards for Department of Veterans Affairs employees.

Currently, participants reaching the age of 59 are allowed only one TSP withdrawal while actively employed in the government. When they leave federal service, they can withdraw a portion of their balance, but only once. After that, only full withdrawals are permitted.

The TSP Modernization Act introduced Friday by Reps. Elijah E. Cummings (D-Md.) and Mark Meadows (R-N.C.), and earlier in the Senate, would eliminate those restrictions. Investors could make multiple withdrawals at age 59 and after leaving the government.

Its huge, Kim Weaver, a TSP spokesperson, said of the legislation. It is supported by the Federal Retirement Thrift Investment Board, which administers the TSP.

In a memo to the board two years ago, Greg Long, then the executive director, said changes like those in the legislative proposals will allow us to favorably respond to participant demand and move closer to typical plan design found in private and public sector plans. This set of changes will be a win for participants.

The bill would encourage participants to keep their TSP accounts to take advantage of low administrative fees even after they retire or separate from federal service, Cummings said. The legislation would give TSP participants what they want: greater flexibility to withdraw money from their accounts to address unexpected life events.

Its a win for the TSP too, which would keep more money longer.

Restrictive rules pushed many investors to transfer their balances to other financial institutions with more lenient policies but with higher fees.

Meadows called the bill common-sense reform It will give TSP recipients more access to their own funds and, over the long term, allow them the opportunity to continue taking advantage of benefits similar to those available throughout the private sector after federal service.

Sens. Rob Portman (R-Ohio) and Thomas R. Carper (D-Del.) introduced similar Senate legislation in April.

The proposals put federal employee leaders in the relatively rare position of having something from Capitol Hill to praise, as they did in letters to Congress.

Richard G. Thissen, president of the National Active and Retired Federal Employees Association, said the legislation would create opportunities for participants before and during retirement, provide greater financial independence and encourage participants to keep their money in the TSP.

Although TSP provides federal employees with extremely low administrative and investment fees, pretax and after-tax withdrawal options and an employer contribution, Thomas S. Kahn, legislative affairs director of the American Federation of Government Employees, said it does not provide sufficient options for withdrawals while in federal service, or much flexibility involving annuity payments.

National Treasury Employees Union President Tony Reardon welcomed the legislation, saying I have heard from many NTEU members over the years about the stringent withdrawal rules of the TSP the withdrawal rules have not been changed since the TSP was established in 1986 and are outdated.

While the TSP legislation gives feds reason to smile, Trumps budget plan turns that smile upside down. His proposal for a 1.9 percent pay raise for fiscal 2018 is more than offset by his effort to reduce retirement income for federal workers.

Trumps budget would increase individual out-of-pocket contributions to the Federal Employees Retirement System (FERS), base future retirement benefits on the high five years of salary instead of the high three, kill FERS cost-of-living adjustments (COLA), reduce the COLAfor those in the Civil Service Retirement System and eliminate retirement supplements for FERS participants who retire beginning in 2018.

Since 2010, federal employees have had $182 billion taken from their pay as a result of three years of pay freezes, furloughs, sequestration and increased employee retirement contributions, Kahn said. In addition to these losses in compensation and benefits, the cost of living has continued to rise. Nonetheless, federal employees save for retirement and pay into their TSP accounts.

Federal employee retirement programs are threatened, but their TSP is on the verge of getting better. Thats good, but not much consolation.

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[New withdrawal options forTSPinvestors proposed]

[New VA law sets stage for government-wide cut in civil-service protections]

[Trumps budget calls for hits on federal employee retirement programs]

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Greater savings options for feds draw praise, while move to cut their retirement looms - Washington Post

Rupert Hargreaves | Saturday, 24th June, 2017

Achieving financial independence is everyone?s goal. The dream of quitting the rat race and being able to live off your savings may seem like an unattainable goal to many but in reality, to achieve this, all you need is a little planning. The key to building wealth is a regular savings plan. If you?re putting away a little every month, over time this savings pot will build up. The best way to ensure that your savings stay untouched, and grow steadily over time is to use a bucket approach. Using buckets Using financial buckets to segregate your wealth is easy way of

Achieving financial independence is everyones goal. The dream of quitting the rat race and being able to live off your savings may seem like an unattainable goal to many but in reality, to achieve this, all you need is a little planning.

The key to building wealth is a regular savings plan. If youre putting away a little every month, over time this savings pot will build up. The best way to ensure that your savings stay untouched, and grow steadily over time is to use a bucket approach.

Using financial buckets to segregate your wealth is easy way of making sure that your money works as hard as possible. It doesnt require much effort and youll soon reap the rewards.

How you plan your buckets will obviously depend on your current financial situation, savings goals and position in life. But no matter how you divide your wealth, you should be better off for it.

A simple bucket approach would be to divide your wealth between current and long-term savings. Depending on your current financial situation you may believe it is prudent to put aside enough cash to meet three months of spending obligations as protection against unforeseen occurrences.

With this cash cushion in place, you can devote the rest of your wealth to savings products with a longer horizon, with the intention of locking these funds away. Inside this bucket you may then choose to have two more buckets, one of which carries more risk but a higher potential long-term return such as equities. The other would be low risk but offer a steady return bonds might be appropriate.

The great thing about the bucket approach is that, as well as encouraging saving and making sure that you dont dip into your savings to meet near-term costs, it provides a psychological benefit.

Equities have generated a historic return of around 10% per annum, much more thanoffered by fixed interest. Nonetheless, this higher return comes with increased volatility, which may scare off some savers. But by using buckets theres no need to fret about volatility.

Research has shown that investors tend to panic when the market falls and sell at any cost, a destructive strategy. However, if you have your near-term cash requirements satisfied in the lower-risk savings buckets described above, the chances of you deciding to sell at the market bottom are greatly reduced as you can afford to wait for equities to recover.

Shares in companies such as Royal Dutch Shell and GlaxoSmithKline may fall significantly during periods of market turbulence but these companies have a long history of producing returns for investors and due to their size, they are unlikely to go out of business any time soon. Whats more, these two companies both support dividend yields that are several percentage points above the income offered by most savings accounts.

Overall, if you want to achieve financial independence, a disciplined approach to saving is required. Andthe best way to ensure that you get the most from your money is to separate your funds into different buckets, with different levels of risk and reward based on your own financial circumstances. Job done.

A long-term approach is essential for building wealth. If financial independence is your goal, the Motley Fool is here to help. Our analysts have recently put together this brand new free report titled The Foolish Guide To Financial Independence, which is packed full of wealth creating tips.

The report is entirely free and available for download todaywith no further obligation.

So if you're interested in exiting the rat race and achieving financial independence, click here to download the report. What have you got to lose?

Rupert Hargreaves owns shares of GlaxoSmithKline and Royal Dutch Shell B. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended Royal Dutch Shell B. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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You can achieve financial independence easily by using buckets ... - Motley Fool UK

Achieving financial independence is everyone's goal. The dream of quitting the rat race and being able to live off your savings may seem like an unattainable goal to many but in reality, to achieve this, all you need is a little planning.

The key to building wealth is a regular savings plan. If you're putting away a little every month, over time this savings pot will build up. The best way to ensure that your savings stay untouched, and grow steadily over time is to use a bucket approach.

Using financial buckets to segregate your wealth is easy way of making sure that your money works as hard as possible. It doesn't require much effort and you'll soon reap the rewards.

How you plan your buckets will obviously depend on your current financial situation, savings goals and position in life. But no matter how you divide your wealth, you should be better off for it.

A simple bucket approach would be to divide your wealth between current and long-term savings. Depending on your current financial situation you may believe it is prudent to put aside enough cash to meet three months of spending obligations as protection against unforeseen occurrences.

With this cash cushion in place, you can devote the rest of your wealth to savings products with a longer horizon, with the intention of locking these funds away. Inside this bucket you may then choose to have two more buckets, one of which carries more risk but a higher potential long-term return such as equities. The other would be low risk but offer a steady return -- bonds might be appropriate.

The great thing about the bucket approach is that, as well as encouraging saving and making sure that you don't dip into your savings to meet near-term costs, it provides a psychological benefit.

Equities have generated a historic return of around 10% per annum, much more thanoffered by fixed interest. Nonetheless, this higher return comes with increased volatility, which may scare off some savers. But by using buckets there's no need to fret about volatility.

Research has shown that investors tend to panic when the market falls and sell at any cost, a destructive strategy. However, if you have your near-term cash requirements satisfied in the lower-risk savings buckets described above, the chances of you deciding to sell at the market bottom are greatly reduced as you can afford to wait for equities to recover.

Shares in companies such as Royal Dutch Shell and GlaxoSmithKline may fall significantly during periods of market turbulence but these companies have a long history of producing returns for investors and due to their size, they are unlikely to go out of business any time soon. What's more, these two companies both support dividend yields that are several percentage points above the income offered by most savings accounts.

Overall, if you want to achieve financial independence, a disciplined approach to saving is required. Andthe best way to ensure that you get the most from your money is to separate your funds into different buckets, with different levels of risk and reward based on your own financial circumstances. Job done.

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Rupert Hargreaves owns shares of GlaxoSmithKline and Royal Dutch Shell B. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended Royal Dutch Shell B. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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You can achieve financial independence easily by using buckets ... - AOL UK