Financial Independence & Starting
It seems like once you bring attention to your finances everyone around you is standing with a megaphone screaming “Invest, Invest, INVEST!!!” as they throw their fists in the air.
Okay. Maybe it is not that dramatic, but once you really start to pay attention to anyone talking about financial independence or investing the amount of people advocating for it is overwhelming.
Have you ever considered what financial independence looks like for you? And if you have, have you looked at what number you need to actually reach it?
For some, financial independence merely looks like not having any debt and having the ability to cashflow their lifestyle. For others it is the ability to quit their jobs and do whatever they please because they are able to live support their lifestyle with income from their investments. Some people try to reach these financial places as early as possible, while others are willing to wait 20-40 years of working to reach this place.
No matter what road you take, you should know what your financial independence number is. There is an awesome tool developed by Nerd Wallet and you can input your current and projected numbers and it will tell you what you need to have for retirement and give a rough estimate of where you will be at that time.
By using a retirement calculator, it offers a real prospective shift as to why you should work to get over the fear of starting.
Going back to those people with the megaphones, when you realize that you need a million or a few million to live how you want to for the rest of your life, it really is eye opening about how that compound interest can really make all the difference, even in just five years.
So, what can you do to overcome that fear of starting?
Do not wait for the next week, month, or pay period, instead, when you are done reading this, go and login to your HR and set up any retirement packages you company offers.
If you receive a raise, send that money straight to investments, if you never see it, you’ll never miss it.
Call Fidelity or Vanguard and speak to a FREE financial consultant and see if you are eligible for an IRA.
Look at the last 50-90 years of the stock market, have there been dips? Yes. But if you look at the big picture it has been continued growth.
The key is
to do these things IMMEDIATELY so that you do not give yourself the opportunity to psyche yourself out.
Yes, it is true you will not have those funds immediately, but your future self will thank you for being able to do as they wish with the funds that accrued thanks to compound interest!