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5 STEPS TO
BECOMING
FINANCIALLY
HEALTHY IN 2008!
by Derek Ward |
Over 50% of
today’s American
workers have no
idea how much
money they will
need to retire
comfortably and
the ones who do,
have simply
calculated by
guessing. This
could be one
reason you may
see our
community of
senior citizens
forced to go
back to work
long after their
date of
retirement.
These senior
citizens should
be enjoying
their golden
years, but you
now find them
back in the
workforce or
greeting you
when you walk
into your local
Wal-Mart stores.
People will tell
you that this
was not how they
had planned
their lives, but
it’s now a
necessity in
order to survive
in today’s
economy. If you
ask them their
regrets they
will tell you,
“If I had only
planned a little
better for my
retirement
years.” It’s
terrible that
this regret will
haunt them for
the rest of
their remaining
years. They were
depending on the
system to take
care of them and
that faith has
placed them in
their current
financial
prison.
How will you
feel if this
becomes you at
your retirement
age?
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Social security
and pension
income is simply
not enough to
even live
comfortably in
today’s economy.
The average
social security
benefit is $928
per month and
based on future
projections, the
social security
trust fund may
be exhausted by
2041. Large
corporations are
no longer
offering pension
plans and based
on statistics
from the
Government
Accountability
Office defined
benefits pension
programs have
shrunk from
112,000 in 1985
to less than
30,000 today.
So, where does
that leave us?
In a nutshell,
it is simply
going to be up
to us, you and
me. If this is
the fact that
we’re facing for
retirement, then
what are we
doing about it
today?
Currently, more
than half of
American workers
today report
less than
$22,000 in total
savings and
investment
accounts. Based
on the U.S.
Bureau of
Economic
Analysis (April
2007) even
though our
national
disposable
personal income
increased in
2006, the
percentage of
personal savings
has now dropped
to a negative
3%. We’ve become
a nation that
does not save
money. So, there
you have it.
Most people have
no savings and
no strategy for
their financial
future. We
spend, but we
don’t save money
and have no
financial goals
or retirement
plans. When will
we wake up and
see the affect
this is having
on our families
and our future
generations?
You must create
a program to
ensure that you
and your family
will be
financially
healthy in the
years to come.
You can no
longer expect
that you will be
taken care of by
“the system” and
no one is going
to do it for
you. You must
set in motion a
plan to becoming
financially
healthy and you
must start
today!
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Social
Security
and
Pension
Income
is
Simply
Not
Enough.
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Here are 5 steps to
becoming financially
healthy.
Step1: You must
analyze your spending
habits and take control
of your expenses. If you
never do this, you will
find yourself wondering
if you will ever retire.
Take the next 30 days
and document exactly
where you are spending
your hard earned
dollars. You will
discover spending habits
that you may not have
been aware of.
This may uncover
additional cash if you
simply cut out some
unnecessary spending
habits. The small
expenses add up to large
expenditures over a 30
day period and these
habits may be siphoning
off your potential
savings. Someday, you
may wonder where it’s
all gone when you reach
the age of retirement.
Take control of your
expenses.
Step2: You must
initiate a plan to
eliminate your debts.
Meaning elimination, not
consolidation.
Consolidation is simply
not enough. Institute a
plan to payoff your
debts, one creditor at a
time. The key is to take
action now! Decide which
creditor you will payoff
first. By simply adding
a few extra dollars to
the monthly payment you
will pay that debt off
faster. Once that debt
is paid off you can use
the extra cash you no
longer have to pay on
that debt and add it to
the minimum payment of
your next debt. This is
a very exciting method
towards debt freedom.
You will enjoy the sense
of accomplishment as you
watch your balances
become lower as your
creditors are paid off,
one by one. There are
part time income
opportunities available
to increase your income
that may turbo charge
your efforts. We can
also show you how to
payoff your 30 year
mortgage in potentially
8-11 years without
increasing your monthly
mortgage payment. (visit
my website below) You
must take action and
begin your plan today!
Step3:
You must have an
emergency fund.
Save at least 6
months income
for any
emergencies that
may arise such
as auto repairs,
medical issues,
or temporary
unemployment.
These incidents
may be
devastating to
your financial
health if you
haven't planned
for them. If you
become
temporarily
unemployed and
unable to find a
new job
immediately, you
will need your
emergency fund
to help you seek
new employment
and get you
through the
tough times. If
your car needs
repairs and you
don’t have an
emergency fund
you will alter
your current
monthly budget
and may even
suffer a loss of
income due to
transportation
to your
workplace.
An emergency
fund will bring
you financial
peace of mind
and get you
through
unforeseen
financial
challenges. Find
your leakages
from step 1 and
start your
emergency fund
today!
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Step4:
Protect your
family against
any loss of
income. You must
evaluate your
current
life/health
insurance needs.
Loss of a family
member could be
devastating to
your family’s
assets. This
area of
financial health
has been
neglected for
far too long.
Today we live in
a philosophy of
immortality.
Life/health
insurance is
designed to pick
up where your
intentions left
off. Insurance
tends to be
considered a
luxury instead
of a necessity.
It is often more
affordable then
you may realize.
Be a responsible
example to your
family and
discuss your
options with an
insurance
planner. It may
be the only
thing between
devastation and
survival of your
family members.
Do it today!
Step5:
Setup long term
savings and
preserve your
estate through
tax free or tax
deferred
investments.
Your investments
must outpace
inflation.
Retirement is on
the horizon and
will happen
sooner than you
think. You must
plan for your
retirement. Your
plan should
consider how
many years you
may be living in
retirement and
how much it will
cost for you to
live comfortably
during those
years. This is a
very important
calculation,
especially since
many people stop
working earlier
and live longer
in their
retirement
years. The magic
of compound
interest can
work in your
favor if you
simply start
today.
These steps are
very crucial to
your financial
health. Each
step is no more
important than
the other and
you can decide
which one to
initiate first,
but you must do
all of them if
you expect to
live a life of
financial
freedom. I
encourage you to
step away from
the conformity
of the masses
and make these
your priorities
for the New
Year. People
don’t plan to
fail, they
simply fail to
plan. Take
action today and
you will have no
regrets
tomorrow.
We can help you
initiate a plan
for all of these
important steps
to your
financial
health. We
provide personal
and professional
service through
our nationwide
associated
network. If
you'd like more
information,
please email me
at DWardEntp@yahoo.com
or visit my
website at:
www.thefinancialeducator.blogspot.com
We are here to
help.
About Derek Ward
As an
accomplished
multi-state
mortgage broker,
co-founder of
the former First
Federal Mortgage
in Palmdale, CA
Derek Ward
is a nationwide
financial
educator.
Securing
proper education
and credentials,
his goal was to
be a resource to
others so they
would not
experience the
stress and
turmoil he
suffered when
purchasing his
first home. He
has since
purchased and
sold numerous
investment
properties;
brokered million
dollar real
estate
transactions and
now resides in a
seclusive gated
community north
of Los Angeles,
CA.
Ward is a man on
a mission
dedicated to
educating
consumers to the
many financial
choices
available; but
not often
understood.
Promoting the
legacy of debt
freedom, he is
now more intent
on fulfilling
his original
aspiration to
help others
become
financially
educated and
independent.
Ward is
currently
reaching out to
families and
homeowners
nationally to
address their
needs and
concerns through
education and
awareness.
To find out more
information on
Derek Ward,
please contact
Jazzymyne Public
Relations at
makeda@jazzmynepr.com
or visit his
website at
www.thefinancialeducator.blogspot.com
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