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Financial Freedom

How Millennials Can Be Millionaires

How Millennials Can Be Millionaires

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Millennials tend to have the reputation of ruining things. You see the articles all the time of the newest trend we have ruined in our society. The reality is that millennials seem to be breaking free of what is typical.

This is how I think about a lot of my own personal finances and others that I have helped. You need to create your own path to prepare for your future. The only person that can do that is you.

This goes for everything in life and I know I am walking a different path then most of my millennial peers, but I encourage you to do the same.

This is especially true for planning for your future and the possibility of being a millionaire. The reality is that millennials are at the perfect stage to become a millionaire.

Now, I get it. I’m sure a lot of you are drowning in the mistakes of your past. I know I am, but I have a plan to get out of it. And so can you, if you take the time to plan for your present life and your future life in retirement.

I just recently finished reading Everyday Millionaire by Chris Hogan. If you haven’t read it, you need to find a copy right now and start reading. I got mine from the library after being on the wait list for weeks. As a millennial, you have some amazing advantages on your side to becoming a millionaire, especially if you’re a 20-something.

Wouldn’t it be nice to add to the list of things millennials ruined as the generation to broke free of financial hardship and had the highest number of millionaires. It’s possible and here’s why.

1. Becoming a millionaire takes time, something millennials have a lot of.

I’m not saying you need to be busting your butt working all hours and investing your time into working. I mean you have many years on your side to becoming a millionaire. Millionaires aren’t created quickly usually, they usually are created slowly and after many, many years of careful planning.

The reason why it takes many, many years is because you are benefitting from the beautiful thing of compounding interest. This means that your interest is earning interest for you. This also means that the more time you have money sitting in your investment accounts, the less money you actually have to put in.

2. Millennials have been known for loving their work, making it easier to be a millionaire.

It only makes sense, if you love what you do, you’re more likely to continue working. Millennials have been known for doing work they enjoy, rather than chasing a higher salary for work they hate. Most people would consider this crazy, more money makes your life easier.

Your income doesn’t matter. What does matter is that you have the passion and drive to get up and go to your job every single day. That is much easier to do when you love your work.

When you enjoy your work, a lot of aspects of your life improve. This is important in order to become a millionaire. If you work solely because you love your work, not because you need to, your potential is endless.

3. A lot of millennials are living on tight budgets.

The reality is that a lot of millennials are living on little right now. If you’re like me, you have massive student loans and your starting salary isn’t great. Yeah, if I could go back in time, I probably would have not taken out this much debt, but I didn’t know any better at 18.

Looking at the bright side, living on a tight budget has taught me lessons to last me a life time. It has taught me how to be frugal and how to enjoy life while living on less. What prevents so many people from becoming a millionaire is lifestyle creep. More income, more expenses.

This doesn’t have to be the case. If you continue to live on a budget each month, of course less tight as your cash flow frees up, you will become a millionaire. Slow and steady with good money choices will lead you to that big money goal. Any one can do, most people just aren’t willing to make the right moves to do so.

Millennials will be millionaires.

I really do believe this. Millennials have everything in their favor to becoming millionaires, it just depends on if you’re willing to make those moves you need to make to become one. My ebook outlines how us 20-somethings can master our finances and set us up to be millionaires. How are you preparing to be a millionaire? 

Financial Freedom

Why I’m Choosing FIRE

Why I'm Choosing FIRE

I’ve been on my debt free journey for 3 years now and honestly, it’s taking a toll on me. I’m ready to be done with it and moving on to bigger goals. I’m excited to have my debt paid off, but I’m so ready to actually keep my money!

This journey is definitely hard, seeing all of my money going to debt is rewarding, but it still kills me to see all the money that goes to interest. I can’t wait for the day when interest is something that only makes me money, not costs me it.

Seeing my debts go down and the interest lower definitely is rewarding, but what has really kept me motivated lately is what’s to come once this debt is paid off. I’ve been doing a lot of research and I can’t wait to put my plan to action.

What is FIRE?

FIRE means Financially Independent, Retire Early and it’s a movement that I totally can get behind. It basically means that you live a life of financial independence, not controlled by money. Most people that support this movement don’t actually retire early, but they do work that they enjoy because they don’t need the money that comes from the work that they do. FIRE allows people to live the life they imagine for themselves because they are not tied down by money.

Why I’m choosing FIRE.

I’m still drowning in student loan debt, $97k to be exact, but I’m also still investing and saving money every single month. It’s not a ton, but it’s something. The reason I do this is because compound interest is on my side right now as a 20-something. I also know that I want something more for myself than just going to a job I hate everyday, so I’m starting to plan for my future now.

This is exactly why I’m choosing FIRE. I don’t plan on actually retiring early, but I do plan on doing work that brings me joy and doesn’t require me to need a certain salary to live. Everything I do is leading me to achieve FIRE, so that I can live a life that I choose, instead of one that is ruled by money.

How I will reach FIRE.

This is the part that makes me so motivated to pay off my student loans. My first step to reaching FIRE is paying off all of my student loan debt. This is a long road, which is why I am investing a small amount every month still. Throughout paying off my debt, I am budgeting every month and have found the things that I truly value. By finding what I value in my budget, it has allowed me to drastically cut my unnecessary spending.

This will be key in the road to FIRE because it allows me to have low expenses each month by living an intentional life. Once my debt is paid off, I will move my focus to saving and investing my money. By doing this, I will be able to live the life I want to live, instead of one that revolves around payments.

Choosing FIRE.

In the end, it all depends on what you want from your life. I personally want a life where I can do whatever work that brings me joy, or choose to do volunteer work. With my current finances, neither is an easy option for me. By attaining FIRE, I can do the things that I choose to do. Is FIRE something you hope to reach? How do you plan on reaching it?

Money Management

Why You Need to Start Cash Flowing

Why You Need to Start Cash Flowing

There are so many terms when it comes to personal finance and so many ways of doing things out there. I mean with a simple search on the Internet you will find endless resources for personal finance and how to go about getting your finances together. The most important is absolutely getting a budget together, cutting expenses, and increasing your income, but it’s also super important to create sinking funds and cash flowing larger expenses.

What is Cash Flowing?

This is one of those terms that is thrown around the personal finance world a lot and it makes sense, it’s super important. Cash flowing is when you have a larger expense and you delay the purchase until you have enough cash saved up for the expense. This tool is used when it is something you didn’t necessarily see coming (unlike a sinking fund that is for known expenses in the future). For example, I am cash flowing a new to me car instead of financing it. Of course, I could go out right now and get a car and finance it, but that would increase my debt. Something I am not interested in doing because I want to live a life of financial independence.

How to Start Cash Flowing.

You’re obviously not going to always use cash flowing, there is a time and a place. If it is a known expense that is happening in the future, like an oil change or yearly membership fee, you should have a sinking fund for it. If it’s something that you need to purchase and have time to save, then cash flow it. I’ll use my example of a new to me car. This isn’t an emergency and I have time to save for it. So, I’m adding money each month to a car fund I created. You need to decide where your priorities are and how quickly you want to cash flow the purchase. For me, I want to have it cash flowed by October, so I am sending a lot of my extra income from side hustles to this fund each month while still sending extra to my debts. Once you have made your decision, you can tweak your budget to find the cash for your purchase. Remember, a budget is not meant to restrict you, but to allow you to make the purchases you want.

Cash flowing has been a total game changer for me and my budget. Just by delaying a purchase until you have the cash to afford it, you can avoid putting yourself into debt. As I said earlier in this post, in order to obtain financial freedom, you can’t be burdened by debt and having to pay companies for past purchases with interest. Have you ever cash flowed a purchase?