10 Money Mastery Milestones to Maximize Your Cash Flow & Net Worth

The money section we looked at different ways to free up more money so you can better enjoy it. Now let’s look at what it would be like for you to really master this area. throughout the program, we’re addressing these four areas. And I’m giving you some suggestions of what it would look like if you were totally on top of these. You don’t have to use these suggestions, you might decide to take some of them. But I want you to see this as a way to set some goals that in the long run you can keep on top of that will help you greater enjoy your life outside of work, as well as your family, your friends and your life. So the first milestone is to simply have enough income to pay your bills and live within your means and also save 20%. So 20% is a number used to be 10% that people would say and 20% the number that most people say if you want to be able to have enough money set aside for emergencies to comfortably retire, and different things that 20% number to be able to do. And so if you want to engage this as a goal, you can decide if yes or no you do you want to do this and what’s your target Maintain your status updates over time. Second thing is zero credit card debt. That means your balances are paid off each month and you’re not paying credit card interest. When you’re paying credit card interest, of course that’s costing you a really huge amount. And when you’re not doing that, you’re basically getting your rewards points if there are and making it as simple as possible to work with your debt in a manageable way, keep your credit scores up, but not create a situation that’s hurting you. Third, having an emergency savings fund equal to six months of your take home income. We never know when things are going to happen, job changes or unfortunate events. One of the best practices from the financial planning industry, which is part of where I come from insurance and financial planning is to be able to have at least six months of your income set aside. So in case something happens, you don’t have to go to expensive credit card debt or other areas to take care of that fourth, tab, personal income protection and that’s really a what’s called a disability in insurance policy, at least in United States, that’s what’s called equal to 70% of your income or more. And what that means is that’s a type of insurance policy, that if you’re unable to work, it will eventually pay your income for you. Now, it might have a waiting period of 30 days or 60 days or 90 days or depending on how the policy is worded. But what it really comes down to, is if you’re unable to work, it’ll pay you so you’re replacing your income and your income, your ability to generate your income, which is one of your greatest assets, is not lost completely, if you’re injured or unable to work. fit if you have a family and you want to make sure your family’s taken care of and their lifestyle and the ability to do that. What I like to call family income protection or life insurance, equal to 10 to 20 years of your income. And again, I have an entire careers worth of information, wisdom and knowledge on this. But the simple version is if you’re a parent and your kids are, let’s say two and four, and you want to make sure that if something happened to you, they’d have your income available, at least until they’re in their early 20s. Maybe till they’re done with college, if that’s a goal, then you might want 20 years of protection. And all this is about making sure your income is there. If something happened, it’s not something you hope for. But again, knowing that it’s there, if something happens is a great way to be on top of your finances, no your loved ones are taken care of. Number six, all the debt you carry, if any, has an interest rate under 5%, and your credit score is 800. Plus, now, you might not want to be using a lot of credit, but when you use credit, it’s nice to be able to get the lowest rates. So by no means am I an advocate of building up credit just to build a credit score that accidentally gets you hooked and then ended up paying credit card interest. But if you can really be on top of things, then you can be able to access credit at lower rates if and when that’s something that’s wise for you to do. Seven, have a monthly budget, track your expenses with software and review on monthly basis. Whether you look at Quicken or mentor or any other services out there. We’re just if you just keep with pen and paper, whatever that is Just making sure you know where your money’s going to make sure you’re not investing or spending on things that aren’t important to you. Eight, being able to travel and enjoy life comfortably according to your priorities. So some people travel more than they save up things. In my case, my wife is from Peru, we’ve lived down there at different times for months at a time, sometimes years at a time. And having the flexibility to do that has been more important than us building up purchasing a lot of physical objects. Now, again, if other people like buying physical objects, great for them, as long as you can do it in a way that allows you to still live your life the way you most want to. Number nine, being able to comfortably give to charitable and educational causes you believe in. You don’t have to do that. But again, if that’s something you want to do, it’s always nice to be able to give when the time comes around when you just feel that desire to support a cause that is important to you. And then 10 building network to afford your educational goals for your loved ones or to pay for your educational goals if you have the desire to get greater levels of education. And then also the ability to retire at your same lifestyle. That’d be really clear. If you follow any of the work I do. I’m not an advocate of actually retiring. I do believe it’s awesome if you have enough money that you can afford to retire. So you can work as many hours as you want or not. Or if you decide that the work you want to do is volunteer work, so you have that money there. But as far as actually retiring and stop being moving, or just stop thinking, stop engaging with people stop participating, start being stopped being part of a community that’s been found to be not something that’s healthy for people. And at least the United States, the average life expectancy of a male is two years after he retires from work if he retires completely. So this is something that again, is just as much about health as it is finance, but certainly being able to do it. And being able to do all these things really reflects a level of mastery that even if you’re not a millionaire, or a billionaire, or whatever it might be, that you have the ability to live life on your terms and do the things you most enjoy. So I invite you to take this part of the workbook and start tracking it if you want to make slight definition changes to the goals here, do so. But of all the different sections on mastering milestones, this is probably the one that’s most almost just cut and dry. This is what most people want to be able to do for a certain reason and most of the things being able to keep credit card interest low being able to have insurance if you need it being able to afford to retire. For most people, these are goals. They’re going to serve you if you’re able to do them. I hope this helps you. If you have any questions or comments, or if you want to share your feedback and your progress, please put them in the comment section below. And as always, I look forward to helping you make more money in less time. Do what you do best. So you can create the lifestyle and the life you most desire for you, your loved ones and your friends. Thank you