How Secure Is Your Source Of Income?
“If you know where you are going, any road will take you there. If you do not know where you are going, no road will take you there”, said a wise person. This quote is very relevant to your quest for wealth and financial independence.
Even if you are still working maybe it is time to consider getting another source of income, it makes you feel a lot more secure. A few of my female friends have expressed a desire to downsize to part time or even replace their jobs completely. Allowing them to spend more time with their children and family generally, so change is not always a bad thing.
First, you panic, then you get really mad and finally you settle down and realize you better do something and do it fast. For many, this has been a very real life experience, one that we wish never occurred.
Healthcare, travel and insurances will be significant expenses in your budget. It is for these reasons that you will need a reasonable, steady and reliable source of income to enable you maintain an enjoyable lifestyle during your retirement years.
There are 2 places you ought to be thinking about – pre-retirement and after-retirement. It is easier to plan about pre-retirement because you know your current financial situation, earning ability and preferred lifestyle.
Let me give you a clue. Joe is 65 years old and will retire at the end of this year. His Financial Independence Number is 1.2 million and it equals the value of his investments. Joe can therefore expect to spend $50,000 every year for the next 35 years till age 100. He will invest the $1.2 million in an interest earning account that will give him at least 5% interest per year during his retirement.
Some debt is good e.g. house mortgage and education loan. Just make sure the interest rate is fixed and payments are affordable. Remember to shop around for the lowest interest rate and the shortest payback time.
Whatever you choose to do, whether a home based business or a new job and career, you must do it with all your might.
Peter Werth is an expert MLM Home Business Opportunity distributor. Visit his website for insightful MLM Home Business Selection Advice today! This and other unique content ‘wealth plan’ articles are available with free reprint rights.