When you’re financially free, your investments will pay for your lifestyle.
Here’s my challenge: Make what you have now buy your luxuries. Just try it once and see how it works.
Let’s pick an example even a teen could do. Let’s say you want a new phone. Jot down what features you need and start researching costs. Meanwhile, do you have anything you aren’t using any longer that you could sell to raise money for the phone?
Could you also sell your old phone? What else could you do using what you already have – except your wages – to get what you need? If you can use income from investments to pay for your luxuries, more of your wages can go to investments. (I got this from the Rich Dad, Poor Dad book.)
To me, this is like practicing being retired. If you can’t even get your luxuries from what you’re investing now (and from selling stuff you no longer use), how will you know how to manage investment income to support yourself later?
It’s a challenge but it’s a challenge with an upside. If you are an average teen, you probably have a lot of things you could sell. Maybe you could get an even nicer phone.
If you figure out how to do this, you’ll get a double reward. You’ll have more money to invest (because you aren’t spending your wages on your luxuries) and you’ll know how to actually make those investments cough up some money for you to use. Get used to living like this and you’ll be financially free a lot sooner than you’d otherwise think.
Today the annual bill came for George’s life insurance. It was slightly under budget and it’s not due for another month. I’m going to pay it August 1 instead of today. It’s only 4 days later but that means I can grab another month’s allocation.
Today’s Deposit: $69
Level Completed: 167 out of 251
Amount Deposited this month: $1,550.97
Total Balance: $18,068.46
Our Money Game fund has increased 9.4% so far this month.
$77.18 is needed to reach the next level