Waking up elderly, and trying to survive off of a monthly Social Security deposit is one of my biggest fears
Your spouse dies, social security has to recall the deposit that month because they passed away, your account is $1200 negative, it’s a Saturday so you can’t call the Social Security office until Monday to get it sorted out. Once you can, the money won’t be there for several days.
You have bills to pay to keep the electric on, to keep the water running, to stay warm, to get just a little food in the fridge. You have no money.
You have already lost your spouse, having to work through funeral expenses, handling the estate, figuring everything out, and you are all alone in this.
None of us were prepared for this
Financial education is lacking in our society. It is not lacking on how to save money, but it is lacking on how to make money, keep money, and multiply your money. Saving money and pinching pennies will not save you from a big life event. When all you have is a hand full of pennies, and no way to replenish it, you’re screwed. Just being honest.
In school, if you’re lucky, you learn how to maybe balance a check book, you learn about putting money in a savings account. That is typically about it. When you get into your job, they tell you to invest in a 401k. You don’t know what you’re really investing in, but it’s supposed to be the “adult” thing to do.
The truth is, most people retire with just enough to get by, but not enough to be prepared for life events like deaths, major health problems, and so forth.
Saving is good, but saving alone will not save you.
Finish this sentence: “There’s more to life than…”
We all say “There’s more to life than just money”
But when you’re elderly, alone, grieving, and in debt, because you bought into the lie that social security was going to take care of you, you start singing a different tune.
It may be too late for some to make a difference, and shift their financial situation for the long term, but it’s not too late for you.
Start educating yourself on how to not only save money, but how to make it, and how to make it grow.
There is more to life than just money, but there’s also more to money than just living your life.
Financially Educate yourself
78% of American full time workers, are living paycheck to paycheck
This is one of the most important things I’ve been learning while working in the financial industry, and studying Grant Cardone, Robert Kiyosaki, and some others. You need to get financially educated. There’s such a large gap of information in school when it comes to finances.
Schools, and others, will tell you that you have to go to college to get a good job. They will also promise that you will get that good job right out of college. If you talk to a lot of college graduates, that’s just not the case. You’re not guaranteed that large salary just because you got a piece of paper saying you’re educated on a higher level. The times have changed. Many have decided to opt out of college to save the money, do there own thing, and become very successful. The results will vary based on how good you are, and how well you can stand out in the market. You can make a good living for yourself doing your own thing, or something on the side while working just a regular 9-5. If you want a decent paying job right out of school, then go to tech school and be a welder. They make $15-30 a hour + overtime, depending on the type of welding you do, and they’re in demand. Or become a Registered Nurse, and make like $20-30 + overtime. Nurses are always high in demand.
What you do with the money you make, is where you need to educate yourself. You need to understand how to make money, how to keep money, and how to grow your money.
First: Always pay yourself first.
Whenever you get income, of any kind, pick a percentage that you’re going to put away into a sacred account that you do not touch. This will be fore later investing, which is part of the growth stage.
Do not increase your spending, when you’ve increase your income
This is a trap that many fall in to. You get a raise, you get a bonus, you get a second job, and you now have more money than you did. What happens? You start buying that house, that new car, those unnecessary objects that you end up never using. You spend the excess, and are back to square one, and you have nothing to show for it. You need to learn to keep your income.
You cannot get financial freedom on one flow of income. It is said that some of the most successful people, have at least 7 flows of income. You cannot get rich off of one flow. Grant Cardone has built out the formula for Wealth Creation. The graph below will get you started, but the program he has built is where you deep dive into wealth creation.