Self-Coach Sunday 30: Protect Your Stuff

Insurance: the story goes – if you have it you’ll never need it, but if you don’t, disaster will strike. Today’s to do is to get insured. Sign up for health insurance, get renter’s insurance, if you own a home you must have home-owner’s insurance, and consider life insurance (term insurance) if you have someone who relies on you or your income. And if all of those are taken care of, you may even want to add long-term-care insurance to that list.

This will help you attract what you want in life because it will give you peace of mind. You wouldn’t want to lose your hard-earned cash reserve unnecessarily. You can protect this beyond your life by also considering a will and living revocable trust. It is a wise move to include seeking out professional help to set these types of accounts up. You will be protecting yourself and others in the process.

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Self-Coach Sunday 29: Play For Financial Independence

Once you have started setting aside enough savings for an eighth-month reserve and have gotten into the habit of saving 20 percent of your income, you may be ready to play for financial independence. Make this a game and see what happens. Financial independence means you have enough money or revenue streams that you never have to work again.

First, realize that anyone can play this game. Second, decide how much money you really need to be financially independent. Don’t overestimate. We are not talking in terms of millions, or a life of glamour. This is a figure that you could live off of. Example: interest off of $250,000 would generate about $25,000 a year. You would need to invest $2,083 a month at a 10 percent interest rate. Figure out how many years you need to save/invest in order to reach your mark. This will put you on the path towards financial freedom.

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Self-Coach Sunday 28: Start Saving 20 Percent Of Your Income

Most people have a natural tendency to be either savers or spenders. The good news is that although you may have a natural predisposition to save or spend, you can change this – but you need a reason to do so.

Financial independence – having enough passive cash flow or income streams to cover your living expenses so that you don’t have to work for a living!  The key to financial freedom is to start saving 20 to 25 percent of your current net income. That is a goal worth saving for! Either cut expenses by 20 percent or increase your income by 20 percent.  Better yet, do both! You will be able to retire and be financially set as a result.

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Self-Coach Sunday 25: Go On A Money Diet

It can be easy to forget that money does not buy happiness. But research indicates that it may be even worse than we thought. A New York Times article state: “not only does having more things prove to be unfulfilling, but people for whom affluence is a priority in life tend to experience an unusual degree of anxiety and depression as well as a lower overall level of well-being.” Instead, pursue goals that reflect genuine human need like connecting with others. In place of extrinsic material goal, try focusing on developing better relationships and becoming a better human being. The bonus is, as you fulfill your emotional needs, your need to spend will decrease.

One way to break a spending habit is to go on a money diet. For 30 days, stop spending. Make no purchases other than essentials: toilet paper, toothpaste, groceries and so on. During the 30-day period make a list of things you’d like to buy, but DO NOT buy anything.

Once you have broken the spending habit, you will discover the joy of saving.

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Self-coach Sunday 24: Pay Off Your Debts

It seems to have become socially acceptable to have debts. It used to be that people saved money for what they wanted, and the bought it. Now it is the other way around. We charge now, and pay later (with high interest rates). You may be so used to having debt that you don’t even realize how stressful debt is. Until you are debt free, it is hard to believe what a relief it is.

Debt drains your energy and can make it very difficult for you to be your best and attract the people and opportunities you want. When you are debt-free, it is natural to be carefree and light. If you don’t have the savings to instantly pay off debt, do it gradually and continuously until it is retired. It may take some time, but stick with the payment schedule and eventually you will be free and clear. Over your head? Then consider a nonprofit credit counseling service.

The skills you develop from paying off your debts are the foundation (and the same ones) you will develop to build your financial freedom. You can do it!

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If you are interested in coaching or have questions, please feel free to contact me.

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