Dear Mum and Dad …
No not really, but that’s probably how I’d start it if this
was a letter to them.
This letter is to all parents, and to the children too,
because we’re all … someone’s kids.
This one is a hard one to write. Why? Because I don’t have kids. And that makes it hard for me to relate to parents. I tip my cap to you all, because I like time to myself. I’m pretty self centered too. Honestly I don’t really see myself as paternal material. But anyway.
You can’t work your way to wealth
Despite the social mantra, you can’t work your way to
As long as you trade time for money, you’re part of a losing
strategy and here is why.
Imagine starting your working life at the age of 20, and your first wage is worth $65,000.
How bad can it get?
The stats are pretty horrific. 88% of people do not invest, and on average 1 in 500 succeed financially. So when it comes to achieving financial independence why try? Why bother?
Never trying will guarantee failure, but any attempt to secure your future is better than nothing and even small victories count.
But the phrase of ‘cash flow is king’ is always true. I make it no secret that I am not a financial advisor—I’m an educator! But you don’t have to go too far to understand that cash flow is truly king.
Is this what I’m writing about today?
Sure is! Somewhere we all have a guilty, selfish, perverse
dream to take a holiday somewhere exotic. So how long does it take to save for
a holiday? Before I move forward, this dream is not selfish, perverse or
something you should feel guilty about. As you’ll see you’re going to deserve
it more than you know.
Instead it is something that should be chased especially as a personal reward for years of services rendered at your job.
The gross value
Previously I asked the question of how much it takes to
retire early. This same question also is how much it takes to become
There were a range of answers all the way from a retirement
pension that only provides $24,268.40 per year, through to a real case where
the money target was $384,000 per year.
Using average figures along with a multiplier of 2.5 I
rounded up to come up with a number of $150,000 per year net.
So what does $150,000 look like?