A lot of us are thinking about retirement and wealth building all wrong. We are told to save up, invest in a 401k and twenty years from now you will have one million dollars. This is all wrong.
This advice has people scraping by, just barely making their mortgage payment, taking vacations, buying everything they want because the long term think allows them to avoid short term sacrifice that would set them free well before age 65. This is not the way that I plan to live my life.
I believe that this advice is aimed at milking as much money out of you in fees in interest as they can. The 401k company makes money on your money for “managing” (if you can call it that) your money. The mortgage company makes money on interest over time because you took your loan full term. You made 100k per year for twenty years and all you have to show for it at the end of those 20 years is a paid off 300k home and a mil in the bank. The problem with that is that twenty years of 100k income is two million dollars and you only have 1.3 to show for it. The other 700k is the interest and fees you lost by paying your mortgage full term not to mention all of your life you gave away hoping for that big pay off. This advice serves them it does not serve you. There is a better way.
Most of us need to chase financial freedom NOT wealth and riches. So many of us are chasing riches though. We want the glamour we want the big baller everything so we chase and spend and buy and chase. Twenty years later we are exhausted. Chasing riches is a race many should not be running. My thinking is that it is easier to rapidly get to zero than it is to get to riches but the freedom you get from zero is as liberating as the riches.
One of the most infuriating things I see my people do is buy a house and make the mortgage payment and the mortgage payment only. This upsets me because you will look up fifteen years from now (that is a long time) and realize you haven’t even made a dent in the principal. You basically have spent fifteen years renting from the bank. Meanwhile these folks lived their best lives around their mortgage, taking trips, buying bags, posting flicks on the gram but in real life their financial situation is trash. They will be stuck working for someone for the rest of their life because they couldn’t handle a little sacrifice.
What financial freedom does for you is it gives you the same exact freedom you would have if you are rich. You no longer have to work, you no longer have to answer to anyone you can come and go as you please, you have more discretionary income. That is what financial freedom allows you to do. It is called freedom for a reason.
So when you buy the house it is your responsibility to rapidly pay down that house. If you have dual incomes you should be doubling down on the mortgage to get mortgage (death pledge) free. Flip the game on its head.
One thing that I love about being a reader and a podcast listener and someone that is just educated period is that I look at life and make a decision based on my thought process not on the though process of others. Many people who are uneducated take their cues from their friends. I am always hearing from uneducated people what their homeboy or homegirl said. Its like their homeboy is their scholarly source.
The point of this post is stop aiming at retirement as the end goal and start getting insanely serious about retiring that debt. Why is this important? It is important for a lot of reasons. The debt is not a moving target but investment returns are. You are buying and hoping to get a return but your debt is a set number and it is always that number.
Not only is the interest not a moving target but neither is the principal balance. Doesn’t it make sense to pay 300k instead of focusing on millions? If you knew that freedom is in 300k instead of that silly wealthy number they tell you to aim for wouldn’t you choose 300k? What is smaller 300,000 or 1 million?
When you achieve financial freedom you get to follow your passion, when you follow your passion you make massive amounts of money because you don’t count the hours. So the key is do what you have to do then do more of what you have to do then do what you are passionate about.
Stop chasing millions and start chasing freedom. I know many many people who have paid off their homes and retirement started at that point not at some age 20 years away. Take control of your life, and start playing the game. Don’t let the game play you while collecting interest and fees.
I encourage you to invest with us and join our partnership. We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year. We are also going to buy a truck by midyear. If you want to form your own contact us for a consultation and we will walk you through the process.
If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership. Email firstname.lastname@example.org today to join.
We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/
Thanks for reading!
Be great, invest well,