Time Is Money - Financial Independence, Retire Early

By Adidas Wilson

When you ask most people, they will tell you they never expected the FIRE movement to get so popular. Foregoing the pleasures of life and saving 50%+ of income in order to retire at 30 or 40 is not an easy thing to do. In 2020, the FIRE movement is at its peak. Unfortunately, that means there's no more rising—the only way to go is down. Every day, you see a story of someone who retired early and how they achieved that. This is how you know that FIRE is at its peak. Any investor knows that when you see the news in print, you cannot invest because it is too late. But it is usually a great time to sell. Investors try to forecast the future. Building true wealth is not just about making money. At some point, you have seen happy poor people and miserable rich people. According to research, the relationship between happiness and money is small.  The following ten principles will help you attain true wealth, personally and financially. Become Deeply Motivated - Money cannot be considered a deep motivator. Financial wealth has external benefits. With money, you can have big bank accounts, fancy houses, etc. but you cannot buy happiness. Since external goals have inherent limits, they will limit your motivation.

• Language: English
• Publisher: Financierpro Publishing
• Release date: May 1, 2020
• ISBN: 9781393734574

Book preview

Disclaimer

THE AUTHOR HAS MADE every effort to ensure the accuracy of the information within this book was correct at time of publication. The author does not assume and hereby disclaims any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause.

Foreword

"T ime Is Money", this expression comes from Benjamin Franklin, one of the Founding Fathers of the United States. He wrote in a book in 1748: Remember that time is money,. The meaning Time is money means that in order to earn money, one must act and therefore use one's time (which is not infinite). We also use this expression to say there is no time to lose. This book is being published in one of the worst economic times in history. The COVID-19 virus has one of the worst effects on the global economy and over twenty-five million people have filed unemployment in the United States. If you have not thought of reinventing yourself before and creating multiple streams of income, now is the time. Everyone probably knows that having multiple income streams is a fantastic idea. But many will not realize why it is important. Regardless of where you fall, here is everything you need to know. Having multiple streams of income simply means having different cash flow sources. If one of the sources dries up, you will still be okay. Technology has made it easy to have several consistent streams of income, both active and passive. Before getting into examples, it is good to know why you need multiple income streams. When you mention multiple income streams, this is the first reason that comes into most people’s minds—it is obvious. With additional sources of income, your financial goals will be achievable, your standard of living will improve and, if you have any debts, you will clear them faster. More money means freedom and opportunities. What would happen to you if you got laid off from your 9-5? Other than shock, you will get deep into financial troubles if you do not have another source of income. With several streams of revenue, you will continue sustaining residuals to pay bills as you hunt for another job. People have different retirement goals. Some hope to retire at 30, others 40, and others 50. The earlier you start with building income streams, the earlier you can retire. The truth is that most people do not make six figures. This makes saving and investing a lot tougher—unless you have several income streams, apart from your job. Don’t put all your eggs in one basket. You have probably heard this advice lots of times in your life. It is a cliché, but you need to live by it when planning your finances. If you want to invest successfully, you must diversify. Spread money to various assets so that when there is a downturn you will be protected. The same concept applies to income streams. You will not get rich overnight, and it is not easy. You still must work hard. Having several income streams, however, will get you there faster. It will also help you maintain the wealth you have attained. It is said that the average millionaire has seven income streams. Examples of income streams can be your job: this is the 9-5 for most people. It is a primary source with consistent income.  Secondary income: this is a spouse’s salary. Investments: this refers to stock market investment through Roth IRA, 401(k), etc. Online business: there are tons of businesses that you can start online, such as selling on platforms like Amazon and creating a blog. Gig economy: when you hear of the gig economy, think about Rover, Airbnb, Lyft, Uber, etc.  Rental income: this may require a large initial capital, but it is a great way to build wealth. Successful people do not see the world like everyone else. It is not because they are perfect or because their version of life is easier than yours. However, in one way or another, they always appear to bounce ahead. It does not matter the obstacles they face, the problems that come their way, or how loud their critics sneer—they always come up with a way to emerge victorious. How do they do this? They have a few beliefs that they hold on to. These beliefs make a difference in the way they fight for success. They do not view the beliefs as some random motivational quotes from a book. What they believe in impacts every aspect of their daily life. Everything is possible if you are prepared to put in enough effort and time. If you make up excuses to get out of doing something, that ‘something’ is exactly what you are supposed to be doing. The people who do not like you much are the ones that will give you the most truthful advice. Whoever wants something the most is the one who will eventually win it. Whatever it takes is exactly what it takes to achieve your life desires. If you want to keep losing, surround yourself with negative people. Gratitude, action, fear, and worry are choices that you make.  If you are not prepared to master all the details, you have very slim chances of winning. Apathy is a hindrance to achieving something fantastic. Just because you failed last time does not mean that you should stop trying. It does not matter how bad you have it; if you want to make, you will. No one is responsible for making your decisions. You get to make all your decisions. If you have been yearning for a second chance, today is your second chance; make use of it. Your effort’s intensity determines how fast you progress . Be prepared to listen and acquire knowledge; otherwise, you will never get better. Your actions in private determine your course of development. Just because your critics are loud is not reason to believe that they are on the right. If a solution is easy, guaranteed, and fast, it will probably not be useful in the long run. In their heart of hearts, winners believe that nothing Is Impossible. In most cases, they have no idea how they are going to win. But even then, they truly believe that they are going to find a way. According to them, the great equalizer is effort. When they have no idea what they should do, they take time to learn and even perfect it. The things you believe will bring change in your life. This is a good time to pause and seriously think about what motivates you. What are your beliefs? Do you think that life is not fair?  Do you constantly believe that you have it harder than everyone else? Do you blame everyone but yourself?

If you don't find a way to make money while you sleep, you will work until you die.

-Warren Buffett

Table of Contents

Foreword

Introduction

Ch. 1 - Your Battle Against Time

Ch. 2 - The Crisis

Ch. 3 - FIRE Portfolio

Ch. 4 – Personal Finance

Ch. 5 - Signs

Ch. 6- The FIRE Within

Ch. 7 - Real Estate in America

Ch. 8 – FIRE Steps

Ch. 9 - Taxes in Retirement

Ch.10 - FIRE Income

Ch. 11- FIRE 20/20

Ch. 12 – Annuities

Ch. 13 - FIRE Buffers

Ch. 14 - Rich Dad, Poor Dad

Ch. 15 - Good to Great

Ch. 16- Think and Grow Rich

Ch.17- Common Sense Investing

Ch.18- The Four-Hour Workweek

Ch. 19 – FIRE Coach

Conclusion

About the Author

Introduction

Building true wealth is not just about making money. At some point, you have seen happy poor people and miserable rich people. According to research, the relationship between happiness and money is small.  The following ten principles will help you attain true wealth, personally and financially. Become Deeply Motivated - Money cannot be considered a deep motivator. Financial wealth has external benefits. With money, you can have big bank accounts, fancy houses, etc. but you cannot buy happiness. Since external goals have inherent limits, they will limit your motivation. Come up with deep internal goals such as: Freedom, Leadership, Growth, and Charity. The value you offer should be more than the value you take. If you aspire to give more value, everyone will be a winner. And that is how true wealth is built. By improving the lives of others, you improve your own. There are many examples of people who exploited the environment or other people to build wealth for themselves. But that does not bring fulfillment and happiness. 100% Integrity - Before you say or do anything, ask yourself if it would make your father or mother proud. Do not cheat, insult, harm the environment, encroach on someone else’s property, or hurt someone just so you can be rich. Always do the right thing—that which you would be comfortable telling your parents, children, or spouse about. Be Courageous - It is not easy for humans to go out independently because they are social in nature. But following the crowd will not build you wealth. Do what others are afraid of. Being self-responsible takes courage. So, does acquiring new skills and walking less traveled paths. Be Disciplined - Wealth comes because of many small things compounded over the long term. Those daily habits you consider insignificant can either break or make your success. You need to acquire financial knowledge, invest, and save consistently and persistently. All these things can only happen if you are disciplined. Stay away from conspicuous consumption - Consumerism will direct whatever wealth you have away from wealth building and toward lifestyle. Think of wealth as delayed gratification. Live a modest life and spend less than you can afford. This applies to energy and time, just as much as money. Invest the difference in your future. Create a Supportive Environment - Anyone can come up with a plan to attain wealth. The difference between those who achieve it and those who do not is focused, persistent and consistent action. Avoid distractions and build a support system that will enable you to stay focused. Apply Leverage -With these principles of leverage, you will be working smarter and not harder: Knowledge leverage, Network leverage, Marketing leverage, Systems and technology leverage, Time leverage, and Financial leverage. In short, make use of other people’s resources, not just your own. Your Wealth Is a Business - You need a plan to build wealth, just like you need a business plan. Find proven business principles and incorporate them into your plan. Examples of these principles include accountability, accurate record keeping, leverage and competitive advantage. Steward Your Wealth - With money, comes responsibility on how to use it. Let your wealth do good when you are alive and even after you pass. When someone mentions retirement, you automatically think of people aged 50 0r 60. This is what you are used to. People striving for FIRE, however, retire earlier; in their 40s, 30s, or even 20s. It is easy to dismiss FIRE, especially if you do not make much money. Take the example of someone making about 35k a year. Also, assume that they have huge student loan debt. How can someone like