First Million (eBook)
338 Seiten
Bookbaby (Verlag)
978-1-0983-4564-8 (ISBN)
You Need to Save $1 Million. Why? Because that is the amount of savings you will need to safely receive an income of $50,000 a year, which is the average household income in America. $1 million is the amount of money you will need to be financially independent. What is financial independence? It is when you earn enough money from your investments that you no longer need to receive a paycheck, a pension, or Social Security to pay your monthly bills. Financial independence should be your main goal when you drive to work each morning. It is one of the most important things for you to provide for your family. And it is something that you can achieve in your lifetime. Does this sound impossible? It's not. You are only 5 Steps away. First Million is the story of average people, just like you, who decided to become financially independent. They each followed the simple 5 Steps needed to earn their first $1 million. And many of them continued to follow those same 5 Steps to earn much, much more. I invite you to take the same journey to save $1 million. I invite you to become financially independent. I invite you to eliminate your need for a paycheck, forget your worries about Social Security, and secure a safe and comfortable future. And you are just 5 Steps away. Why would anyone want to read First Million? Because the average American is in serious financial trouble. There are thousands of statistics that cause the alarm bells to ring. Here are just a few: 64% of Americans will not have enough savings to retire. The average American household has $137,063 of debt. The average American household has less than $18,000 in savings. 46% of Baby Boomers have saved nothing for retirement. After decades of hard work, the average Generation Xer has saved only $69,000. And the typical Millennial has less than $5,000 in their savings account. While separated by decades, music tastes, and waistlines, these American generations all have something in common. They have failed to save. Why do most Americans struggle to adequately save? We certainly work hard. In fact, we are one of the hardest working societies on the planet. However, many of us fail to manage the money we work so hard to make. Why is this so?I believe Americans are baffled by the myriad investment choices, fearful of financial complexities, and bored by the self-help tools designed for their saving success. Additionally, I believe many Americans enjoy a hyper-consumption lifestyle and feel driven to compete with their friends and neighbors by purchasing status items, expensive houses, and cars they cannot afford. Finally, Americans fail to plan sufficiently for the rising cost of healthcare, education, and household emergencies. I wrote First Million to help others become financially independent. This is not a book about investing. It is a book about saving. The fictional stories within this book are designed to be short, entertaining, and easy to read, while conveying the life-changing wisdom needed to help you reach your financial goals.
Betsy’s Budget - Annual Household Income of $25,000.00
| Monthly Income |
| Salary Income (after taxes, social security, etc.): | $ 1,545.00 |
| Other Income: Child Support | $ 700.00 |
| Total Monthly Income: | $ 2,245.00 |
| Monthly Fixed Expenses: |
| Mortgage (Ex-Husband currently pays 50%) | $ 1,087.00 |
| Property Taxes (Ex-Husband currently pays 50%) | $ 108.00 |
| HOA Dues (Ex-Husband currently pays 50%) | $ 63.00 |
| Car Payment | $ 174.00 |
| Minimum Credit Card Payment | $ 75.00 |
| Water Utility | $ 33.00 |
| Cable (Ex-Husband currently pays 50%) | $ 42.00 |
| Home Phone | $ 29.00 |
| Electricity & Gas | $ 84.00 |
| Car Insurance | $ 63.00 |
| Life Insurance | $ 00.00 |
| Home Insurance (Ex-Husband currently pays 50%) | $ 31.00 |
| Total Fixed Monthly Expenses: | $ 1,789.00 |
| Remaining Balance: | $ 456.00 |
| Additional Expenses - Cash: |
| Savings | $ 00.00 |
| Groceries | $ 250.00 |
| Meals & Entertainment | $ 50.00 |
| Vacation Fund | $ 00.00 |
| Christmas & Gift Fund | $ 25.00 |
| Gas for Car | $ 75.00 |
| Personal / Clothes Fund | $ 50.00 |
| Total Additional Expenses: | $ 450.00 |
| Remaining Balance: | $ 6.00 |
“Now, you can see why I don’t have a budget.” Betsy slid the final budget over to Ernesto and sat back in her chair. “I have slashed my expenses down to nothing and I only have six dollars left over. And that’s if I am super careful. I have no money for savings, a bunch of debt, and my ex-husband will only pay for his half of the house for a few more months. Then I will really be in trouble.”
Ernesto studied her budget. “Yeah, but this is a good start. OK, now let’s talk about your debt. Give it to me straight.”
Betsy took another pad and started writing down her debts. The list was longer than she realized:
| List of Betsy’s Debts |
| Credit Cards | $ 4,258.00 |
| Department Store Credit Cards | $ 1,176.00 |
| Car Loan | $ 26,525.00 |
| Mortgage | $ 274,186.00 |
| Lawyer’s Fees | $ 2,106.00 |
| Total Debt: | $ 308,251.00 |
“Pretty awful, isn’t it?” Betsy felt like crying again.
“Oh, I’ve seen a lot worse,” Ernesto said as he studied the list. He could tell she was upset. “I can see how you could get discouraged. But there is a way out of this debt and a way to start saving. But you need to make sure you are ready to start.” Ernesto looked up from the list of debts and met her eyes. “You need to put savings aside first before you spend money on anything else. At least ten percent each month. But, in your case, I think you should save even more money, since you are a single mom.”
“That seems totally impossible,” Betsy protested.
“Americans like to spend everything they make. They buy the most expensive homes they can afford. They lease or take out big car loans so they can look cool in freeway traffic. Many of them are spending one hundred percent of what they make. And sometimes much more than that. Why? To impress their friends? Real friends don’t need to be impressed. They are more likely to respect someone who is living within their means. You need to do things differently, Betsy. You need to live on eighty percent, seventy percent, or even sixty percent of what you earn. This is how you get ahead and save that first million.”
Betsy considered Ernesto words. They made a lot of sense. She had been competing with her friends and neighbors in a game she couldn’t win. It was time to play a new game. “What choice do I have?”
“You have many choices. But to see this through, you will need conviction. You will need to be determined. You will have to say no to a lot of fun opportunities and things that seem important. If you are not all in, you will never make it.”
Ernesto studied her eyes carefully. “Are you all in?”
Betsy sighed and returned his gaze. “Yes, Ernesto. I am all in.”
“Great. This is what you need to do….” Ernesto started marking up her budget with a red pencil, as Betsy looked on. “Sell my car?”
“Absolutely. And your house, too,” Ernesto said in a gentle voice.
“Wait a minute…” Betsy protested.
“Betsy, you can’t afford your house, or your car. They are keeping you on a debt hamster wheel. The best way to free up money to pay off debt and build your net worth is by cutting your expenses.”
“But I love my house. It’s the only home James has ever known.”
“It’s a thing, Betsy. And you’re getting divorced. You will need to sell your house anyway.”
“I was sort of...
| Erscheint lt. Verlag | 1.2.2021 |
|---|---|
| Sprache | englisch |
| Themenwelt | Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft |
| ISBN-10 | 1-0983-4564-9 / 1098345649 |
| ISBN-13 | 978-1-0983-4564-8 / 9781098345648 |
| Informationen gemäß Produktsicherheitsverordnung (GPSR) | |
| Haben Sie eine Frage zum Produkt? |
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