Financial Success, Living Life on Your Own Terms Attainable

Financial success. Freedom to live the life you always wanted. Time to spend with family and friends. Living life on your terms. Do these things sound too good to be true? They are attainable, with the right strategy and execution.

Maybe you are already there and are enjoying life as you see fit. If so, congratulations. If you’re not quite where you want to be yet, I’d like to share with you some basic tactics to help you on your journey to exit the rat race.

  • Live on LESS than you make. You need to create some margin in your monthly budget so you can allocate that amount to building your bulletproof wealth. There are two methods to this: decrease expenses (boring, I know, but you cannot build anything worthwhile if you have a leaky boat); or increase income (much more enjoyable). To gain some quick margin, you can sell unwanted items on ebay, get a part-time job, pay off your credit cards, sell unused “toys” that depreciate (RVs, motorcycles, ATVs), etc.
  • SAVE the money that you now have freed up in your monthly budget. A good rule of thumb is to live on 70-80 percent, give 10 percent to charity, and save 10-20 percent. The best way to do this is to “pay yourself first.” Before you make your car payment, your mortgage payment, etc., you should pay yourself by putting the money into savings. It was natural for me to pay everyone else first and then look and see what was left in the bank account for myself. The problem with doing that method was that the savings was the lowest priority on the budget. Once I made saving the second-highest priority (after giving), I actually saw a lot of progress in this area.
  • USE your new savings to purchase ASSETS. This is the key. Your money has to be put to work to earn you more money. Cash-flowing assets are the key to sustained wealth and the ability to live life on your terms. Examples of cash-flowing assets can be rental real estate (single-family homes, multi-family homes or commercial properties), businesses that run without your input (such as a car wash, self-storage units, etc., that someone else can manage for you), real estate notes, private lending, etc. This is how the RICH differentiate themselves from the POOR. Use your savings to buy assets that grow your wealth instead of consuming liabilities that decrease your net worth.

As the most historically proven asset class in history, I like real estate as a wealth-building tool. Have I personally arrived to the finish line of my personal financial journey? Not by a long shot! But by using the above strategies, I am much closer than I used to be. Hopefully, this article encourages you to take action toward a better life for you and your family. Be blessed, friends. It is possible to create your dream life!

(Charles Foster is the Moore branch manager at Supreme Lending, a leader in the mortgage industry. He can be reached at Charles.Foster@supremelending.com.)