If you’re an average person, you’ve probably previously been told that you need to save tons of money for retirement, and there’s some truth to this, but if it’s such sound advice… Why do most people fail to follow it? The reality is that it’s simply ridiculous to save enough money to live comfortably in retirement, more and more people are outliving their savings and this is a very, very dangerous event. Here’s what you can do about it:
Save less, invest more.
Here’s what I mean, there is of course value in having savings in case of emergency, I personally recommend three to six months of living’s worth of savings accumulated at all times. The rest should be put to work, making more money. Here’s an example, $1 million at a 1.5% interest rate ( a fantastic interest rate to have at a regular bank, mind you) pays you $15,000 a year, whereas if you invest it quite conservatively, receiving a 5% interest rate, you would make $50,000 a year. Investing money is not inherently difficult, but the trade-off is that it requires a decent amount of study, work, and involves more risk than simple savings.
I believe that it is a necessity to understand how to invest money and have it work for you rather than constantly being at its mercy. Dear reader, I urge you to analyze investment opportunities and find ways to put your money to good use before retirement. I believe it’s more important to create multiple long term income streams rather than simply saving money.
If you’re interested in starting your journey to financial independence and success, I highly recommend picking up Rich Dad Poor Dad, here’s an affiliate link to purchase it on Amazon, you would be supporting me too!
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
If you’d want to learn more about achieving goals and fighting a lack of motivation, I highly recommend Grant Cardone’s The 10X rule, please feel free to purchase it using this Amazon affiliate link in order to support me as well!
The 10X Rule: The Only Difference Between Success and Failure