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We’ve all seen those “how-to-get-rich” shows on TV. Some say that
real estate is the answer to financial success. Others say to start
your own business or put all your money into a few ‘can’t lose’
stocks. Whatever the advice, they all make achieving your financial
dreams sound so easy to accomplish, if you just follow their
sure-fire plan.
In reality, very few people make money following these schemes. The
truth is, the real secret to financial success isn’t flashy or
glamorous. In fact, it’s quite boring and even downright dull. But I
can guarantee that it will work.
How can I make such a claim? Because these are the traits I’ve
witnessed first hand, in my own clients. I’m not talking about some
secret financial strategy, but a series of decisions and choices
that they’ve made over the years that have brought them to the place
where they can retire comfortably and enjoy financial freedom.
What is financial freedom anyway? It’s certainly not being a
millionaire, because millionaires can be broke and miserable. And
it’s not driving an expensive car and owning several vacation homes,
either. No, financial freedom is simply making more money off of
your investments than you spend each year. When put in those terms,
financial freedom is something we can all attain to.
My clients are a diverse bunch: engineers, school teachers, small
business owners, etc. But they all share the following traits and
values that have made them financial free today:
They are disciplined savers. Not one of my clients was born with a
silver spoon in their mouth. They started life like most of us, with
few resources and no big nest egg to pull from. But even if it
wasn’t much, they paid themselves first and did it on a regular
basis.
They are disciplined spenders. We all have to spend money, but how
you do it is critical to attaining financial freedom. They didn’t
drive new cars during their earning years. They didn’t have fancy
houses. As a result of their discipline, they can have both now, but
most choose not to.
They have little, if any, debt. They EARN interest instead of PAYING
interest. Because they are disciplined spenders, they pay cash for
things they buy. They don’t carry balances on their credit cards or
borrow for vacations or new furniture. They have learned to live
within or below their means.
Most own their own homes. They made paying off their mortgage a
priority. Not having a house payment certainly helps with cash flow
when you retire. They’d rather live more simply and not have a big
financial burden to bear.
Attaining wealth is all about the choices we make. My clients are
avoiding the traps that affect so many. Money decisions are
approached more financially than emotionally. They look carefully at
the long-term financial consequences of doing something and don’t
let their emotions pull them into a situation they’ll regret later.
Spending $30,000 on a car early in a career can result in several
hundred thousand dollars less at retirement.
They’ve invested wisely. They haven’t thrown their money away in a
get-rich-quick scheme. They also haven’t relied completely on the
advice of someone else. They are informed investors.
All of these decisions may sound austere in our buy-it-now-pay-later
society. But because of these decisions, my clients are able to do
things that most people can only dream of:
They can retire earlier. Many of my clients retire around age 55.
Some continue to work, but do so on their terms, not because they’re
forced to. Their skills are in demand, they can work part time or on
a consultant basis, and they love what they do. And the extra money
doesn’t hurt, either.
They’re able to help their family out in significant ways. Many of
my clients are able to
make down payments on their children’s first homes, or fund their
grandkids’ educations. They’re able to help the next generation get
a step up on the ladder to their own financial freedom.
So if you want to get wealthy, it’s no big secret. Spend less than
you make and be a disciplined saver. It may not be glamorous, but
it’s sure to work. My clients will tell you the rewards are well
worth it!
Nationally-syndicated financial columnist and Certified Financial
Planner® Jeffrey Voudrie provides personal, in-depth money
management services and advice to select private clients throughout
the USA. He’ll answer your financial question – FREE at
www.guardingyourwealth.com. |
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