Financial Freedom Using Our Debt Free Lives

Financial Freedom www.ourdebtfreelives.com

Financial Freedom LLC has experts have actually know that in these hard moments of financial crisis folks looking for support to deal with financial obligation. As a result, they have built legitimate as well as effective strategies, modified to customer needs, to help them handle their financial issues immediately.
They have not designed these services to produce more debt to their customers, however to relieve the concern made by monthly costs as well as banking company creditors.

The provider collaborates with leading economic institutions as well as makes strategic financial investments to adequately support the financial demands of its consumers.

The financial professionals have started www.ourdebtfreelives.com accordinged to the outcomes of some detailed economic investigation on the international market.

The financial situation has actually enhanced financial institution passion rates as well as secured the financing conditions. Thus, lots of debtors located on their own not able in order to pay payday loans, running the risk of in order to lose their works or homes. Those which require the programs in this company will receive legitimate information as well as the important devices to restore their financial independence.

The business additionally supplies consumers lawful defense via special insurance plans, which deal with functions including personal bankruptcy. This program supplies qualified attorneys that are going to represent you in court versus collectors.

The financial freedom principal programs that www.ourdebtfreelives.com could offer are actually:

  1. Personal debt Negotiation-– that is a monetary management program made in order to lower the debtor’s month-to-month prices.

Provided that the consumer carries on in order to pay his debt monthly, the creditor will certainly not change the costs or even the interest. If the customer discontinues the settlements, the equilibrium will definitely continue to grow due to continuing passion fine.

At this moment, customers might seek the financial institution in order to alter the payday loan terms, may work with a legal professional or a monetary business as www.ourdebtfreelives.com in order to work out on their behalf.

  1. Learner Payday loan Nonpayment– that is actually a restructuring course that consists of changing a timeless education loan with a brand new one, even more convenient to ensure young pupils.

This provider guarantees in order to offer many advantages over various other re-financing brokers, such as faster end results, minimized regular monthly settlements, an one-of-a-kind creditor, adjustable settlement alternatives, a variety of reprieve options and also no minimum or even maximum loan amount.

  1. Tax Responsibility— this program delivers the consumer a well-established payment strategy to rejoin all the condition taxes.

The client may settle all state fees in monthly installments without influencing the loved ones budget as well a lot. The class is a genuine help to ensure consumers experiencing financial troubles and also that carry out not desire to acquire sanctions coming from the tax obligation polices.

  1. Credit maintenance— this service assists in order to strengthen your credit rating or even credit rating past.

How these principals will lead to financial freedom?

www.ourdebtfreelives.com professionals could deliver critical data as well as real answers in order to improve your credit rating score, based upon thorough investigation of the whole private credit rating record.  This is key in achieving financial freedom!

This is essential to learn that if you possess credit score past, such as repayment problems, for instance, your rating will definitely be fairly reduced.

Remain your credit score memory card harmony low as well as obtain smaller sized loans you will considerably strengthen your credit report score if you are going to pay your expenses on time.

Www.ourdebtfreelives.com assure to improve your credit rating document via numerous strategies, providing a warranty of $ 10,000 to sustain this declaration.

 

How to Budget Effectively

How to Budget Effectively

Okay, all this talk about a budget. You know what a budget is and why you should have one, but how to budget effectively?

In the beginning, a good idea is to keep track of everything you spend money on for 1 month. You can set it up in a notebook with three columns, one for the description of what you bought, the second for your income, and the third for what you spend.

On this form, you must record everything. Even if you just spend a dollar on a soda, record it because in the end, both sides need to balance out. This is a good habit to keep up all the time, but it isn’t necessary.

Next, you need to examine what you’ve bought. Sort through it and decide which expenses are fixed expenses, or expenses that are for the same amount every month. These types of expenses are most often bills like cell phone bill, insurance, etc.

How to budget effectively requires you to list all these expenses. Write down next to them the amount to be spent.

Then look at the things you spent money on that were changing, such as snacks, movie tickets, gas, and gifts. Gas should be made one section. Take how much you spend in one week and multiply it by 4, for one month. If you spend $20 a week, put aside $80 a month for gas.

I have a certain amount of money set aside each month for gifts, whether I have any gifts to buy that month or not. It’s a really good idea. All you have to do is calculate about how much you will spend in a year on gifts and divide it by 12. This will come in really handy at Christmas time. If you have to pay for your own clothes or personal hygiene products, it may be a good idea to do the same with these necessities.

Now, for the remaining categories, you need to use your own discretion. Use a Budget Calculator to Calculate how much you spent on everything else which should include food, the movies, mini golf, books, clothes, and just about anything you chose to spend for fun or your own amusement. Does it seem like an outrageous number?Did you spend $300 dollars in one month on this stuff? I can tell you, as a teenager that is outrageous.

Depending on how old you are, you should make this expense anywhere between $20 and $100.Although, I think $100 is even a little steep. Set this amount aside every month and stick to it. You may even find yourself saving some of it for more exciting months. If you put aside $50 a month and you only spend $35, by the end of the year you’ll have an extra $180 that you can spend on something big to treat yourself.

Knowing how to budget effectively will lead to improving your financial situation

Every month, you should spend your first paychecks on important bills. Set up a little file system and put aside each expense in a slot. Look at all your expenses as a bill including fun money and gifts. Let’s say you get paid weekly and your expenses add up to $200. If your paychecks are for $100, you can set aside all your expense money in the first two weeks and then the checks for the rest of the month can go right to savings.

After you pay for each expense for the month, cross them out so that you know that they have been paid. You don’t want to pay any bill more than once.

Now that you know how to budget your money, learn how to budget your time, and you’ll be on your way to feeling rich!

Why Should I Budget?

Why Should I Budget

So Why Should I Budget?  You know what a budget is and you still aren’t convinced that this inconvenience will be of any benefit for you. Why should you budget? Why is a budget important?

A budget is important for people of all ages, from teenagers to retirees. It’s critical to budget if you want to get the most out of your money.  This can lead to financial freedom!

When you start a budget, in the beginning, it might seem very constricting. You feel like you can’t just go out and buy something on a whim. That’s partly true. You can’t just go out and blow fifty bucks whenever you feel like it, but it isn’t that strict.  There are some great budget templates out there.

When allotting yourself a certain amount of fun money, you can spend that whenever you want. You just have to remember that once it’s gone, you’re done for the month. Of course, this doesn’t include emergencies such as car trouble.

It’s important to put this restriction on your finances so that you are able to save. Saving money is the easiest way for teens to make money. Like they say, a penny saved is a penny earned.

So then, why should I budget? You should budget not only to teach yourself self control and learn good habits when you are older, but so that you are able to save money.

Having money saved will keep you out of trouble in case of emergency and will allow you to have money for the big things such as a car, or vacation. But I believe the biggest benefit of a budget, especially today, is the fact that it will help keep you out of debt.

With a budget, you keep yourself in check and will always know what you can afford. Debt is a horrible thing to have because it can affect so many parts of your life, including relationships, and even just your own happiness and stress levels.

You must remember that a budget isn’t magic. Just because you plan out your expenses, it doesn’t mean you will have money to pay for everything of your dreams. Just because you stick something in your budget, it doesn’t mean you’re going to get it. Everything has to be balanced out between what you make and what you spend.

Budgeting is a great way to make money as long as you look at it the right way!

What is a Budget?

what is budgeting

What is a budget exactly? A budget is an estimate of expected income and expense for a give period of time in the future. But what is that really? This means that after you cash your check, you don’t blow half of it on the way home. Instead, you take all of what you make from any job you may have and you plan it all out. Every dime is accounted for.

Instead of just paying bills when they come in and buying whatever you want whenever you want you have to plan it out. Most people are probably used to this, but it could cause a lot of problems. You might forget which bills were paid off for which month. It’s important to be organized when it come to money.

You must have all your expenses planned out and set up for each month. This way you know exactly what you need to spend each month. When you have all your bills planned out, you don’t have to worry if you remembered to pay them all.

Even if you don’t get formal bills a budget will help you keep track of all your expenses. Maybe you just give your parents money to pay for your cell phone. In fact, this could be easier to mix up if you don’t keep track. You might end up paying twice for one month. I’m sure you don’t want to do that.

In your expenses, you must include everything you could possibly spend money on, including fixed expenses such as gas and insurance, but also variable expenses such as fun money, and money for gifts.If you have a set amount, you won’t go over. You must budget out every dollar you make.

By spending this way, you will always be spending nearly the same amount every month and may just have room to start saving. I’ve been budgeting since I was about 16 and although sometimes I go off of it, it has helped me organize a lot. Also, I’ve gotten my spending under control and I have been able to save for a lot of important things such as a car and college tuition.

Budgeting Your Money & Enjoy The Benefits

Budgeting

When you get your paycheck, is it usually gone a few days later? You probably feel like you don’t get paid enough because you’re always running out of money. That may be the case, but it’s probably not.

Spending money so quickly and frivolously is not good for many reasons:

  1. The obvious reason, you have no more money, so you can’t buy anything until your next payday.
  2. If you’ve already run out of money, most likely, you haven’t saved anything.
  3. You are setting yourself up for a future lifestyle of living paycheck to paycheck.

If this is the case, you probably don’t live by a budget. Most people don’t. A budget is not just for adults, teens should budget, too. A budget is an estimate of expected income and expense for a give period of time in the future. With a budget, you would have a careful plan for every dollar you make and spend.This probably sounds tedious, time consuming, and not worth your time.

But wait! What if I told you that with a budget you would have more money? Yes, now I have your attention. Okay, maybe you won’t actually have more money, but you will save more if done properly and carefully.

In this section, you will learn the importance of budgeting, different ways to budget, and more. Read on if you want to stop worrying about your money and learn how to budget.

Articles on Budgeting

What is a Budget?– If you’re clueless about budgeting, try here to learn the basics.

Why should I Budget?– The benefits of budgeting and why it is so important.

How to Budget– Tips on how to start a budget and how to get started.

Guide – How to Check My Credit Score For Free

How To Check My Credit Score For Free

How to check my credit score?  Does it even matter?  The answer is Yes!  So where do I start?  Well, a totally free credit reports are an ideal technique to protect your credit score and hold tabs in your credit history. Learn about filing for any totally free report and how you are able to transform your credit ratings.

In a failing economy extra individuals are concerned in regards to the future of their credit than something else. Some men and women report improved anxiety levels once they take into consideration their credit, and are usually in the dark about their score. A credit ratings is fundamentally a quantity (0 to 700 or so) that determines how nicely you pay back loans, credit cards, and bills. A greater credit score is good, but a perfect score is not needed and normally discouraged.

How To Check My Credit Score For Free?

You can find a variety of solutions that let you file for a credit report facts. It is actually critical to understand that all credit reports are cost-free if asked for by the customer. As someone with credit history you have the correct to as numerous free reports as you may need. It’s encouraged to routinely verify your credit score for errors and also identity theft signs.

In light of financial struggles, a credit report can assist you visually see what you’ll want to alter. For example, if your report particulars past due balances you’ve got by no means heard of within your life, you must almost certainly file a report for identity theft. If your report only features a couple of debts listed then you can spend them off speedily to enhance your score.

One of the most vital issue to seek out on a credit reports will be the warning indicators. For victims of identity theft, the very first sign is usually a lowered credit ratings and listings that claim the individual owes anything. These debts could be to bank card companies, billing organizations or maybe a quantity of other sources. They may be risky and can drastically ruin your credit score -leaving you in financial ruin. Credit theft can be a main issue, and you should really usually defend your identity. A free report could be the ideal technique to take the required measures to save your credit.

Use Caution When Giving Out Personal Information For Your Credit Score

You should generally be wary of scam organizations that endeavor to get you to buy credit ratings. These are not trusted and must be avoided. A correct credit report company will present 1 absolutely free report annually. There are a few firms that provide this and also you can receive a report from each and every one particular. Checking your credit ratings Does not reduced your score. A credit score is only lowered when a company makes an inquiry for loans or credit cards. Even then the score is not lowered substantially.  Having a budget in place can be helpful in reducing debt.

To acquire a no cost credit report you basically want to fill out the required information and facts to a reliable company. The firm ought to never email you requesting individual facts. Within a couple of weeks you’ll get a detailed letter displaying all the discrepancies together with your score. Then you can take the initiative to contact these providers and learn what you may do to repair your score.

Quick Budgeting Tips That’ll Save You Big!

Quick Budgeting Tips

Helping you make better spending decisions is a primary purpose of this blog. Sticking to them is the other.  These budgeting tips require little time and effort, but will have a major impact on your savings account.

There are a two ways your brain is hard-wired that make better spending decisions hard.

  • Adaptation to pleasure
  • Mis-predicting pleasure

Budgeting Tips – Adaptation to Pleasure

Our brains are hardwired to notice novelty. When an experience is new you get a lot of pleasure Quick Budgeting Tips For Being Happyfrom it. As you continue to have the same experience, you get less pleasure from it over time. Pleasure turns to comfort, and disappointment can set in. “I thought this would make me happier. Now I’m disappointed because I’m not as happy with this as I thought I would be.”

The second reason we adapt to pleasure is that our reference point changes. Maybe you get a new job and you’re making $10,000 more a year than you were before. You’re thrilled. Then you find out that you’re making 5% less than the next newest employee. Now you aren’t thrilled – your reference point has changed. Instead of comparing to what you used to make, you are now comparing to what you could be making.

Budgeting Tips – Mispredicting Pleasure

We consistently predict that things will make us happier or more miserable than they actually do.

The extreme example of this is lottery winners vs. accident victims. Several studies in psychology show that the strongest predictor of a person’s level of happiness after their circumstances change is their level of happiness before the change. Of course, this isn’t true immediately after the change, but over time people tend to revert to a sort of happiness “setpoint”.

Of course, accident victims are less happy than they were before – the point is the different is MUCH smaller than anyone would expect.

And this more recent study also confirms that the immediate impact of change in circumstances is much bigger than the long-term effect.

Daniel Kahneman calls this the hedonic treadmill. We seek pleasure, and novel experiences provide it, but then we adapt and the pleasure turns to comfort. We continue to seek pleasure, but now it takes another new thing to produce it, so we are always on the treadmill looking for the next “hit”.

Better Spending Decisions – The 5-Minute Solution

Budget Calculator
Budget Calculator – Create a Budget in Less Than 5 Minutes!

OK, so you’d like to get off the treadmill, but you still want to experience the pleasure, right?  This simple practice can help you make better

First, become mindful of your spending AND how much enjoyment it brings you. Just writing down what you spent helps you budget, but it doesn’t help you evaluate how your budget fits into your life.

Personal note: Those “write down everything you spend for 30 days” journal suggestions used to make me crazy! I hate!!! keeping records (you’ll hear me say that often). However, this way is relatively painless and it helps me learn more about what spending decisions are satisfying over the long term and which ones are not.

How to Implement These Budgeting Tips

Ourdebtfreelives’s website has a lot of great articles on creating a budget.  Regular bills don’t usually factor into your “joy index” unless you buy a new house or do something else unusual. For example, this week I bought a new cell phone and case, an exercise ball and a poster with exercises on it. I added those items to my spreadsheet, but not the regular monthly bills I paid.

Here are your columns:

  • item
  • category
  • amount
  • was it a need or a want?
  • Joy index – scale of 1 – 10
  • 1 mo. followup joy index
  • 3 mo. followup joy index (unless 1 month was 0)
  • 6 mo. followup joy index (unless 3 month was 0)

You can track this daily or weekly (I enter any new items daily, but only review once a month). If you wait longer than that it will probably seem like a bigger chore than it is. Over time, as you watch your satisfaction with each item decrease it becomes a little easier to remind yourself before you spend the money that the joy you experience from any given purchase is probably going to be short-lived.  Another way to increase savings is by increasing your income.  We have a great article on Sideline Business Models to get you that extra income.

 

Budgeting Tips – Final Thoughts

Give yourself time for this to make a difference in your spending decisions. Some of the research in this area used professors in the field as test subjects and they were no less prone to mis-predict pleasure or to adapt to it than others who were not familiar with the concept. If even the professionals fall for this, you shouldn’t get too down on yourself when it happens to you.

Curious if there is a way to reduce adaptation? Funny you should ask – keep reading to discover two simple practices that can reduce adaptation and get you enjoying your life more.

Sideline Business Models – Choose Carefully

Sideline Business Models

It’s time to look at sideline business models – you’re almost done! You’ve thought about what you want from the business and what the business will want from you. Now it is time to choose a business model. Don’t panic – this isn’t as complicated as the term might make it sound. A business model is just how you plan to operate the business.

Sideline Business Models Simplified

The questions you must answer are the same questions you would answer when planning a party – see, this isn’t hard!

How Much?

This cycles back to your desires and resources. How much will you have to invest to get your business going. Whether online or in the physical world, you can start many businesses VERY inexpensively. Chris Guillebeau’s The $100 Startup (yes, it’s another affiliate link – if you click it and buy something I’ll make some money – it’s part of my business model) highlights many inspirational entrepreneurs who started with very little money and built successful businesses.

I can’t remember the exact quote or even who said it, but I remember reading where some famous entrepreneur said that having a lot of startup money is actually a hindrance because you aren’t as creative when you have money to throw at a problem. All of us want to have that problem, right?  You can look at a site like www.ourdebtfreelives.com that has a number of different calculators such as a RV Loan Calculator and has great articles on investing.

Who?

Who do you want to sell to? Businesses or individuals? Availability plays a big part here. If your full-time job is during the day (like mine) it is difficult to sell to businesses because you simply aren’t available at the times they would want to talk to you. You could focus on providing services to other part-time entrepreneurs who are working after hours as you are. That solves your timing issue, but be sure you are able to grow your revenue independently of how much time your are working. Otherwise, you are self-employed, no a business owner.

What?

Every business basically sells one of four things – products, services, information, or experiences. Hotels sell experiences. Apple sells products. Authors, coaches, and marketing gurus sell information (and sometimes they also sell products, services, and experiences). Tony Robbins and Disney sell experiences. Boise SEO Consultants and designers sell services.

This is one of the areas where business models can get tricky. Diversification of revenue streams (a fancy way to say “having more than one way to make money”) is important. Many sideline business models involve selling more than one of the four things!

Where?

We touched on this back in part one – do you want a local business? Or do you want your business based online? Even if it is local, your business still may or may not have a physical location.

When?

This relates back somewhat to “who”. If your business is local, when will it be open? Is it year-round or seasonal?

How?

“How”is the heart of the business model.Sideline Business Model

Just looking at online business models, there are many variations, and new ones being created all the time.

Let’s say you decide to start a blog. That doesn’t describe a business model on its own.  Will you make money through advertising? Promote affiliate offers (commission sales)? Sell your own products (back to information, products, or services)? Create a membership site?

Will it be niche site or an authority site? Will you be the only author or will you accept guests posts or hire article writers to create the content?

Maybe you decide you want to sell products. You could sell them online through one of the marketplace sites like Etsy or Zazzle. You could create your own site and buy ads on Facebook to get people to it. You could sell at a local flea market on weekends. Or you could find a network marketing company and sell through a party plan. Of all the sideline business models, this is probably the one that is most designed especially to be a sideline.

Why?

Finally, we circle back to your values again. Every time you make a decision about your business model, you make it because you are choosing between values. Why sell information rather than products? Why focus on the needs of millennials instead of retirees? (Read about the Top Retirement Myths) Why decide to start a network marketing venture rather than develop your own products?

Every time you say yes to one value, you are likely saying no to a different one. That’s why we started with your values and goals. If you were starting a corporation, you would have to answer to shareholders, but this is YOUR company and you only have to answer to yourself, so take your time and design it the way YOU want it (while making sure it will be profitable, of course).

Are You Still Here?

Great! I hope you’ve gotten some value out of this series. As a reward for your diligence, I’ve put together a cheat sheet with all the big questions to ask yourself when you examine sideline business models.

Raise Credit Score 100 Points Overnight

Raise Credit Score 100 Points Overnight

The credit scores actually, an important component to get you financed in a flexible and affordable way. Poor credit scores prevent people from getting a good loan. So, it is a very necessary task to raise credit score 100 points overnight. But, people may often get in a fix what policies and strategies to adopt to improve the credit scores. Well, there are some ideas which would help people improving the credit scores in all the ways they want. If you are planning to find the ways to improve your scores you can go through the following procedures.  Read about Common Retirement Myths.

Five Steps Raise Credit Score 100 Points Overnight

The following are the five best steps to improve the credit scores.  Here you get to know those:

Step 1: Checking the credit report:

In order to raise credit score 100 points overnight you must check the credit report very carefully. You will have to do this for two special reasons. Reason 1 is to check whether there remains any mistake or loophole in the report or not. And secondly, you need to check where to fix to improve the scores. As an ordinary people, you may not understand the ins and outs if the credit report. It is consists of some complex part. For that, you need an expert who would explain to you the details of your credit report.


Here’s some great Budgeting Tips to help you better manage your money.


Step 2: Payment of bills in right time:

You will have to pay the bills in time and in accordance to the bill report. In fact, bill payment in right time has a hue positive impact on your report. The perfect bill payment sends positive feedback to your credit report. This positive feedback would extend 35% of your credit scores. So, you must understand how important the bill repayment is to maintain a good credit score and improve the scores.

Step 3: Applying for short term and short amount loans:

You can apply for short amount and cash loans no credit check. These may not help you financially, but can add positive feedback to your report. This report can increase 10% of your credit scores. So, even if you are not going through financial crisis, you can take such short term and short amount loan. The loan application adds to your credit scores.

Step 4: Proper repayment of the debts:

After getting the loans, you must have to repay the debts in time. Do not make any mistake in this matter. You must have to be a good repair of the debts in order to improve the credit scores. Do not make default. The proper debt repayment is the key thing to improve your credit scores. So, do not make any mistake in this matter.

Step 5: Getting FICO help:

You can seek help from FICO. The FICO helps the borrowers with effective measures which they can adopt and apply to improve the credit scores. You can share your problems to the particular committee and they would offer you with the appropriate and perfect plan so that you can raise credit score 100 points overnight. Read here for more info.

Retirement Myths You Should Know!

Retirement myths

Are you following the wrong directions for your retirement savings?  It’s time to get some of these retirement myths cleared up!

Back in the ’80’s my then-husband I were avid bicyclists. We lived in north Dallas and we used to ride north on Custer Road, out to a farm market road, east to what is now McDermott and then south on the service road of 75 back to Richardson. Preston Road was two lanes then and barely had a shoulder. There was a little country church where we used to sit and rest on the steps and when we got to the service road there was a McDonalds. It was in “the middle of nowhere”, apparently there for the travelers who couldn’t wait to get to Dallas to get a meal or a drink.

Imagine using my directions from the ’80’s to take that ride today. Custer is now 6 lanes. All the landmarks, including the church, are long gone. The farm to market road doesn’t allow bicycles anymore and it is also 6 lanes. The McDonald’s is still there, but now it is in the center of a busy retail area. Riding on the service road of 75 could only be considered suicidal.

Following directions from the ’80’s won’t get you where you want to go. Not on a bicycle, and not in your financial life, either.  Here is a great 401k calculator that allows your to create a number of different scenarios.  Now lets get to the retirement myths!

What’s the big myth about retirement savings?

Well, really, there are two.

  • Social Security will be there when you need it.
  • If your 401k balance equals a certain number when you retire, you’ll be OK.

What’s the problem?

Let’s look at some of the retirement myths:  #1 – Social Security will be there when you need it.

Surely you’ve heard that Social Security is in trouble. Just how much is up for debate and depends on a lot of assumptions. Without some intervention, the money is going to run out sometime within the next 15 years. Yes, there are bonds that are supposed to be “paid back” to continue to fund it, but that’s debatable, too.

To add to the risk, Social Security is at the whim of Congress. Everything about it – benefit amounts, qualifications for benefits, and other frules and regulations, can change.

In short, just because it has been there for years, doesn’t mean it always will be.

Retirement Myths:  #2 – A certain 401k balance guarantees a comfortable retirement

If you’ve had a financial advisor run projections about your 401k, you probably have a retirement savings balance you’re shooting for by the time you retire. Different gurus recommend different multiples of your current income to “guarantee” you won’t run out of money.  These retirement myths can leave you high and dry when it comes time to retire.

Here’s the problem – there are a LOT of assumptions in there that they don’t necessarily mention.

  • A rate of return has already been assumed before and after you retire
  • There’s a rate of withdrawal assumed, too
  • There’s an assumption about what your spending is going to be after you retire

That’s a lot of assumptions. The rate of return between now and retirement day doesn’t help you if the market crashes the week before you retire, taking your retirement funds with it. Even small variations in the rate of return will affect how long your money will last.

Why can’t we do something different?

Now we’ve covered some of the retirement myths we need to discuss what you can do going forward to be successful in saving for retirement.  Whether you’re anywhere near retirement or not, these two pillars of retirement “savings” have been the backbone of most people’s retirement plans for years now.

It’s a classic case of status quo bias and the anchoring effect.  The status quo is that you put $$ in your 401k and contribute to Social Security and everything will be OK. Any other approach looks crazy because “everyone knows this is how you do it”. And the number 65 has been anchored in your brain as the time you “quit working”. Once that number gets anchored, it’s hard to change.

What’s the Answer?

To get the right answer, you have to ask the right question. The right question is not “what worked in the past”, but “given today’s economic reality, what will work in the future?”.

Almost all retirement savings advice focuses on how much you need to save by the time you reach retirement so you don’t run out of money before you stop needing it. This is the wrong question. The RIGHT question is how much cash flow do you need throughout your life.

You don’t have to save a million dollars to have adequate cash flow in retirement. There are other ways to do it, and in today’s economy, they may even be more realistic.

Retirement Savings vs. Retirement Income

Phillip Brewer, in this article on Wise bread, argues that a return to financial solutions from the past is the answer to today’s economy. Specifically, he recommends investing in your own business. I totally agree with this, as this is a way to generate an income stream that doesn’t rely on the government or the stock market to secure your retirement income.

He also suggests that returning to the family as the primary economic unit is an appropriate response to current economic realities. Many millennial’s have already figured this out and are leaving home much later than their parents did.

Brewer points out that this model of the family business as the economic unit was the norm until less than a hundred years ago. THAT sort of redefines the status quo, doesn’t it?

What’s Next?

Assuming you have a job, and a 401k, and you’ve paid into Social Security, should you just ditch all that? Of course not!

Investing in your own business can be a supplement to all that. There are many businesses you can start on the side, and many smart people keep their business on the side. After all, there are benefits to the 401k and Social Security. There’s no need to throw the baby out with the bathwater.

Most people call this kind of business a sideline, but I like to call it a lifeline. Many people tell stories of how a side business kept them from financial disaster when they lost a job, became ill and were unable to work, or needed to take time off to care for a loved one.

I’ve put together a checklist for evaluating this kind of business and I’ll be happy to email it to you. Just put your email address in the form below and I’ll send it right over, along with semi-regular tips to help you make smart decisions about your money AND make them stick.