Finicial Success What's your current financial status? Did you know according to Rick Santorum an American attorney and Republican Party politician, 90 percent of Americans are employees? Therefore about 13.3 percent are business owners. Most people live their entire life working a nine to five, living paycheck to paycheck. Many Americans are at financial risk and they don't even know it. Let's take a minute and think….time is the most valuable thing in our lives, yet we spend most of our time working, isolated from the lives of our loved ones. Today I will educate you about two lifestyles that will provide ongoing income and allow you to spend more time doing the things you want. Financial independence and financial freedom. Financial independence and financial …show more content…
Lifestyle is key to not only yourself, but also to the love ones around you. Someone who is financially independent has a similar but different lifestyle than someone with financial freedom. Someone financially independent is someone who has created an asset, that cover their living expenses. Someone with financial freedom is someone who has created multiple assets that doesn't only cover their living expenses, but also allow them to do things they have never done before. For example, someone who has financial freedom tend to do things because they want to and not because of the price. Financial freedom allows you to take vacation trips and return whenever you would like. How cool will it be to have multiple Cars? How cool would it be to have multiple homes? How cool would it be to give back? The lifestyle is amazing. Financial independence is just as exciting! Although you may not be in the position to give a lot back, but you start to have options such as, purchase a new car, pay off debt, and save for your dream home. When you're not at any financial risk you start to have options, What's your current financial
The “American Dream” of opportunity for advancement in society while hard work leads to financial security seems to be a remnant of a folklore, a myth
In “The Way to Wealth” Benjamin Franklin writes, “We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly” trying to prove a point that frequently people are being taxed an outrageous amount and are taxing themselves extra by actions like spending excessive amounts of money (Franklin 237). Throughout Franklin’s “The Way to Wealth,” he explains how an American economy should work and maintain a stabilized economy for themselves. In the American realm today, about 5.0% of people find themselves facing unemployment, a time of stress and conflict (“Databases, Calculators & Tables by Subject”). With the unemployment rates rising for the first time since February of 2015, the American economy is also facing an increase in debt levels throughout personal households
The Millionaire Next Door written by William Danko and Thomas J. Stanley illustrates the misconception of high luxury spenders in wealthy neighborhoods are considered wealthy. This clarifies that American’s who drive expensive cars, and live in lavish homes are not millionaires and financially independent. The authors show the typical millionaire are one that is frugal, and disciplined. Their cars are used, and their suits were purchased at a discount. As we read the book from cover to cover are misconceptions start to fade. The typical millionaire is very frugal in all endeavors and finds the best discounts possible. A budget is implemented daily, monthly, and annually for a typical millionaire. They live by the budget and are goal oriented. Living well below their means is crucial for a millionaire, and discovering ways to allocate time and money more efficiently. The typical millionaire next door is different than the majority of America presumes. Let’s first off mention what it is not. The typical millionaire is surprisingly not the individual with the lavish house worth a million dollars, owning multiple expensive cars, a boat, expensive clothes, and ultimately living lavishly. The individual is frugal and often looks for discounts for consumable goods. The book illustrates the typical millionaire in one simple word: frugal. It is shocking to believe that this is true, but it does make sense. To achieve financial independence is inherently more satisfying and important than accumulating wealth. According to the book the majority of these millionaires portray characteristics of being sacrificial, disciplined, persistent and frugal. In the book it states, “Being frugal is the cornerstone of wealth-building. Yet far too often th...
Just like the 1930’s today it is not a common thing a family struggling. Due to the 2008 financial crisis many has lost their house and jobs. Even if politicians keep telling us the economy is getting better, th...
“We like to tell ourselves that America is the land of opportunity, but the reality doesn’t match the rhetoric - and hasn’t for awhile” (Matthew O’Brien 1). In today’s economic situations, dreaming big may seem unaffordable, but not impossible. To achieve this goal many aspects should be analyzed to understand the American dream, weakened retirement, and smart investments. Megan Cottrell states that “graduate from college. Get married. Buy a house. Have kids. Put in a few decades of hard work, and then it’s time to retire by 65. That’s the American Dream, right?” (1).
money one has, the happier they are. You often hear people say "if I only had
Parents may not feel comfortable enough with their own financial situation to discuss personal finance with their children (Williams, 2009). Additionally, the parents, or other influencers, may not have a full grasp of certain concepts of financial literacy. In an article by Carlin and Robinson (2010) it was noted that “many retirement-age adults lack the financial literacy to understand the basic features of their retirement plans.” Financial literacy through socialization and practice may not be enough for students; whether it be “disadvantaged” youths who often lack a high quality of life at home, or youths whose parents have stable jobs with retirement
Perceptions of financial well-being among American women in diverse families. Journal of Family and Economic Issues, 31(1), 63-81. Sigelman, C., & Rider, E. (2013, 2009). Life-Span, Human Development and Development. Wadsworth:
Figuring out where you will be financially years from now is hard to imagine. There are always what you plan, and then there’s things that just happen that you would usually rather not have of. You can always make goals and things and hope that things go alright and end up close to what you expected.
Becoming a more independant thinker will lead to not having to rely so much on your parents. Having your own money would make it easier for you to make purchases without mom or dads help. You would learn to budget and decide what would be an acceptable price and what is not worth buying. Considering the price more would be an effect of spending your own money. Most kids wouldn’t want to give their hard earned money up on an overly expensive toy. You would put more thought into the amount of money your spending and if its worth it or not. Having money of your own to spend would cause you to become m...
There is a point in everyone’s life where they will have to become financially independent. For some people this can be a difficult process, and for others it’s easy. Being financially independent usually takes time, and it will take longer for some people. The best thing to do is start young and develop a plan. Becoming financially independent mainly depends on how much you want to work for it. Becoming financially independent is important to me because I have depended on people almost my whole life for things, and it is time I need to be able to depend on myself. I will start my planning by graduating high school, going to college to earn a degree, also during this time I will continue to work a part time job. If I do all as planned I should live the life I want to live.
In order for one to be successful with finances, one must have a budget plan. Dave Ramsey shares steps to achieve financial goals. It requires determination and consistency. This paper will discuss the principles that one must follow in order to achieve financial freedom. What is financial freedom? Different people may differ in opinions on the definition. According to Dave Ramsey, financial freedom is becoming debt free in order to be able to bless others with one’s resources. One starts the budgeting process by setting financial goals.
After years of struggling with money, I was now able to concentrate on something else. College being free meant the only worry I had was doing my best so I could graduate in the future and finally get out of the cycle of poverty I had envisioned myself in for the rest of my life. It was a weight off my shoulders that freed me to do anything I could dream of. My focus was on the future and I knew I would be served well by the lessons I learned throughout my life watching my
A few sources of finance are short term and ought to be paid back within a year. Other sources of finance are long term and can be paid back over several years.
Personal Finance is a class I’ve wanted to take for a while now. My major is Finance not because I want a career in finance but more to learn about finance for my own personal situation. This class taught me so much! During this class I was able to evaluate my financial situation and set financial goals for myself. The four topics that helped me the most were emergency savings, buying a car, purchasing a home, retirement, and estate planning. After completing this class I have a better understanding of these topics and how to achieve my financial goals.