You’ve taken the time to write down, in detail, everything related to your finances and you’ve calculated your net worth. Now you have this number staring you in the face and you’re probably having different reactions depending on your situation. If you happened to have a positive net worth you’re probably thinking, “Well, at least I’m better off than the guy at Net Worth Explosion!” But, if you’re like me and you saw a large sub-zero number punching you in the gut, you probably said something like, “Shit….I suck!”
I’m going to be honest, if you’re like the overwhelming majority of people in the world, it doesn’t matter if you have a positive or negative net worth. You suck either way. Remember the numbers I presented on my about page that referenced the net worth’s of individuals over the age of 65 in the United States? It’s not pretty, but don’t worry, every starting number requires the same process for growing your net worth and becoming financially independent.
- Make a budget.
- Pay off Debt.
- Build an emergency fund big enough to fund 6 months worth of expenses.
- Invest in Retirement.
- Pay off your house.
- Build Wealth.
The process needs to be conceptually simple so that anyone can follow it with confidence. Unfortunately, the majority of people have a hard time digging out of the financial basement and moving on to greener pastures due to the fact that they have to modify their behaviors and the way they think about money. This is incredibly difficult. Most people don’t even pay attention to their money. They lead a life where they buy whatever they want, whenever they want it. This is INSANITY! A lifestyle like this leads to debt and a lot of it. Debt keeps you in the rat race. It prevents you from being able to save money! It keeps you working a job you hate, making a commute you hate, and answering to bosses you hate. In What Is Your Net Worth I explained how I accumulated $34,000 worth of credit card debt and following these 6 simple steps can help you avoid my mistakes.
Your goal, now that you know your net worth, is to work through these 6 steps and get out of the rat race so that you can do anything you want. Want to take long vacations every month? Done. Want to work shorter hours so you can attend your children’s school events? You can do it. Want to stop working at all? It can be done! You can spend your day any way you want because you’ll have Financial Freedom. All you need is a plan and I will be your guide as we work our way towards Early Retirement together! It will not be easy, but this blog is here to offer support and motivation.
*What are your thoughts on Early Retirement? What would you do if you could spend your day doing anything you want? Leave a comment and don’t forget to subscribe to receive email notifications of new posts!