Financial Outlook

Top 10 Real Goal of Life

Get Out of Debt – Completely

  • Getting out of debt means that you’ll have full control over your income – and that’s an incredible feeling
  • It will leave you with more money for savings and investing – and even more for spending
  • It will remove the asterisk from your finances
  • It will make it easier to quit a job you don’t like
  • It will free your mind of the worry and stress that come with debt

Plan For Early Retirement

  • Reaching your retirement goals may take longer than you think; if you plan to retire at 50 you’ll have plenty of time to make it by 65 in the event that you hit a few snags.
  • Poor health could make early retirement a necessity – if you’ve planned and prepared to retire early, then you will be ready.
  • Family circumstances often require more of your time, and early retirement will help you to have it.
  • Though you may not want to fully retire early, you may decide that you would like to downshift and not work so hard.
  • It’s better to be able to retire early and not need to, than to need to retire early and not be able to.

Have a Well-Stocked Emergency Fund

  • It can take away a lot of the money worries that you have, since you know that you will always have a reserve should you get into a tight spot
  • As is expected of an emergency fund, it will be there to cushion the blow in the event of a sudden emergency, such as a job loss or a large medical expense
  • It’s an important money management tool – if you can save money for an emergency fund, then you can save money for any financial goal that you have
  • It provides you with an intermediate funding source – a kind of halfway point between your paycheck and your investment accounts – that you can use so that you don’t have to disturb your long-term investments
  • Just having an emergency fund will make the wide swings in the stock market more emotionally tolerable, knowing that your survival isn’t at stake when the market falls

Create Multiple Income Streams

  • One of those income streams could be the part-time cash flow that enables you to semi-retire at an early age
  • If you want to start your own business – but don’t want to quit your job – starting a side business could be the way to do it.
  • The extra cash flow from any additional income stream could be used to help fund your retirement savings.
  • It could also be used to help you pay off your debts.
  • Several income streams could provide you with an income portfolio, that means that you’re not dependent on a single source of income – ever!

Have Enough – But Not Too Much – Insurance to Cover Contingencies

  • Where life insurance is concerned, stick with term life insurance – it’s cheaper so you can buy as much as you need. Just make sure that you’re not buying so much life insurance that you’ll be worth more dead than you are alive; it’s just an expense you don’t need to carry
  • Unless mandated by state law, look into the carrying the lowest level of auto insurance possible, particularly if you have a long history as a safe driver
  • Take the highest deductible you can on your health insurance, and make up the difference with an emergency fund that is large enough to cover that deductible – if you seldom use your health coverage, you’ll be way ahead from the lower premiums

Be Able to Live on Less Than You Earn – No Matter What

It’s important to always be on the hunt to increase your income. But that strategy will only be effective to the degree that you are able to live on less than you earn, so that you can put the difference to better use to improve your life.

End Any Addiction to Stuff That You May Have

  • Stuff needs to be stored, and as your pile of stuff grows, you will need an ever larger space to store it. That will likely see you looking to buy a bigger house every few years, with all of the expenses that come with it
  • Stuff is a capital trap – it ties up your money, but generally provides no financial benefit
  • Any money that goes into stuff, is money that is not going into productive investments
  • While stuff can make you more comfortable, only income producing or growth oriented investments can improve your station in life
  • During times of financial turmoil, you may become obsessed with protecting and maintaining your stuff, which is not at all what you need to focus on
  • Stuff has a way of eating up time, so that you have less of it to spend on more productive activities

A Plan to Do Work That You Love

Ultimately, the purpose of improving your finances should be to provide you with independence in your life. That means that it should afford you the ability to do what you want, when you want. If that isn’t one of the good financial goals, then you don’t know what is.

Why is doing work that you love a worthy financial goal? Very few people will actually be retiring to the beach for a life of blissful nothing, no  matter what you see on TV. If nothing else, it’s likely that you will work just as a matter of personal satisfaction – or an attempt to avoid boredom.

Since you will be working all of your life – one way or another – the work that you do shouldn’t just be about earning money. It should be something that makes you feel good about your life, and good about the person you are.

Get Comfortable Sharing Your Good Fortune

If you can’t get comfortable sharing your good fortune with people who are less fortunate – perhaps out of fear that you will end up broke as a result – then money has complete control over your life. It doesn’t matter how much money you amass in your life, it should never control you.

There are numerous reasons why giving to others will be good for you:

  • Letting go of money affirms your power over it – because you know that it will come back
  • Giving to those in need makes you part of the solution in the world, and not the problem
  • Hoarding money is all about security – letting go of it is celebrating its value
  • Giving to others just feels good – particularly the knowledge that you have the ability to do it
  • Call it Karma, a higher power, what-goes-around-comes-around, or whatever you want, when you give you get – maybe not always in the form of money, but often in the form of friendship, personal satisfaction, or even help from others when you’re in need

A Plan to Leave Your Financial House in Order Upon Your Death

However you live your life, it should be a goal to make sure that your loved ones are left at least a little bit better off as a result of your life. That means not only making adequate provisions for those who are dependent upon your financial resources, but also making sure that you don’t leave them with a financial mess to clean up.

Here are some steps you can take to leave your financial house in order:

  • As discussed in #5, make sure that you have adequate insurance, particularly life insurance
  • Make sure all of your debts are paid, and if there are any large or unusual ones, by a term life insurance policy to payoff that debt upon your death
  • Discuss the financial implications of your death with your loved ones, to make sure that everyone understands what you want to do, and also so that you will consider any concerns or insecurities that they may have
  • Make sure that you have set an example of good financial management for your loved ones – what they learn from you will benefit them for the rest of their lives, and probably more than any amount of money you could leave them