Financial awareness can help you create financial independence. The basic foundation of financial awareness is financial literacy, which is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all their financial resources. Financial literacy equips us with the knowledge needed to manage money effectively. Without it, our financial decisions and actions we take—or don’t take—lack a solid foundation for success.
Reaching Financial Freedom
Did you know that nearly half of Americans don’t expect to have enough money to retire comfortably? One of the biggest attributes to this is because there was no game plan in place early enough to reach that goal. This is very important as a Salons by JC Salon Suite Owner, is your plan in place? Unlike larger companies and corporations who might offer 401k plans to begin saving for retirement, suite owners have to establish investment products like IRAs and annuities on their own to reach specific goals. Gaining an understanding of how money works and getting help from a financial coach will help you succeed financially.
The Game Plan
A good place to start when creating a solid game plan to begin your amazing journey to financial independence is with Savings. You may feel as if you are living paycheck to paycheck as most do. Saving money begins with mindset and making an agreement with yourself to be disciplined enough to save anything. Start out small $5, $10, $20 a month, whatever your budget will allow you to ‘sacrifice’.
Sacrifice, when it comes to saving your money is the beginning of the best habit known to man. Whatever the amount is – Don’t Touch It! Before long you will be a saving fanatic. Take my word for it. Starting early is important, but starting NOW is even more important. It’s not how your money story begins, but how it ends.
An Example of the High Cost of Waiting
Let’s say you want to save $1 million by age 67? You’d better get started soon. The longer you wait, the more you will have to put away each month to reach your retirement goals.
- 27 years old? You would have to put away $214 a month to reach $1 million.
- Start at age 37, put away $541 a month to reach your goal.
- Begin at age 47, and you would have to put away $1,491 a month.
- Wait until age 57, and you’re putting away a hefty $5,168 a month.
- Wait until the last minute (age 62) and you’d have to stash $13,258 a month to reach $1 million by age 67.
Whatever your goal is, the sooner you start saving, the fewer dollars you’ll have to put away each month to reach your retirement goals. Don’t pay the high cost of waiting.
For more information on Financial Wellness & Independence, contact [email protected]
Blog written by Mona Echard | Salons by JC Business Coach