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Free money via automatic investment
Free money via automatic investment
Free money via automatic investmentThe following is a brief introduction to the 7 Steps to Financial Freedom
Step #1 - Paying Yourself First
Investing your money to grow it is a very smart concept. For example, who can imagine that, a $1,000 invested at 15% compounded would be worth $19,962 in just 20 years? That's almost a 20-fold increase in value.
Automatic Investment Plan (AIP) is the first best way to Pay Yourself.
Money is withdrawn automatically and regularly from your paycheck or your checking (or savings) account and invested on your behalf when you join this program.
Step #2 - Re-investing Your Investment Returns
To your long-term financial success, reinvesting Your Investment Returns is absolutely critical. Many investors start out on a good path. They set up the automatic Investment Plan (AIP) and watch their investment account grow.
Everything is working exactly like it should. When they sabotage the entire program by stealing' the earnings to consume, then it all comes to a grinding halt
Step #2 will allow you to retire early and rich with very little effort, which is the most exciting thing about applying it.
Step #3 - Receiving Automatic Investor Rates of Return
Your objective is to earn a minimum of 12-15% return on your investments when you become an Automatic Investor. This is for the long term rather than a year or two. This is actually much easier than it sounds. For example, who can imagine that the S&P 500 Index has grown an average of 14.5%pa for the last 45 years?
Step #4 - Knowing What Your Money is Doing
Most people hardly know anything about where all their money goes. All they do know is that they do have a lack of it. They know they should have more money left than they do, only when they take a quick snapshot of their financial situation.
Step #5 - Adopting the Automatic Money System
You must have a system for controlling your money in order to succeed in restructuring your Personal Finances, while to most people Budget' is an ugly word.
A Budget is just a tool as it is simply stated. It is a system used to have your financial goals achieved, monitored and maintained. It is not a magic wand, nor is it a slave driver's whip. It will only work as effectively as the person operating it.
Step #6 - Financial Competence (Intelligence and Responsibility)
It is actually quite simple to achieve financial Competence. Use your God given common sense. Seek the information taught in products such as Automatic Wealth, Winning the Money Game, and Money Secrets of the Rich, for further insight. In your day-to-day money decisions, always remember to follow The Seven Steps to Financial Freedom.
Step # 7 - Living Debt-Free
Two Financially Competent practices are required for living Debt-Free:
Never using consumer credit on the lender's terms; and by adding 10% of your gross income to your minimum monthly debt payments, you eliminate your debt.
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