You might think building a lifetime of financial security is complicated. But a few simple steps are all you need. Here are five steps to a lifetime of financial security.
If you want a lifetime of financial security you need a system. And you can quickly put this simple system in place. And once you get this system in place, you won’t even miss the money you’re using to build financial security.
The first time you read these simple steps you might not believe they’re going to work. But if you give this simple step-by-step system a fair try you’re going to be amazed at how well it works.
1 – Live on 70% of Your Income
Most people spend every cent they earn, no matter how much they make. When they get a raise, they quickly spend more so they never get ahead. But if you can switch your mindset to spending a percentage of what you earn, you free up money for your future.
I learned this concept from Jim Rohn. And if you give it a try, I guarantee your financial future will be better.
The first part of Rohn’s system requires you to learn how to live on 70% of your income. This means paying all of your expenses and bills on 70% of what you make.
In the next three sections, I cover the other steps in Rohn’s financial independence system.
2 – Invest 10% of Your Income
When you learn to live on 70% of your income, you have 30% left over. But what do you do with the other 30% to build financial security? I cover the other 30% in this section and the next two sections.
With 10% of your income, you invest. You can invest in anything you want, but I recommend something fairly safe like an index fund or mutual fund that has a good track record.
Consistently investing this way builds long-term wealth. And once you get in the habit of investing 10% of your income, you never miss the money. And your investments work for you every day.
3 – Use 10% of Your Income to Make Money
Use another 10% of your income to make money. Rohn calls this commerce.
It doesn’t matter what you do as long as you use the money to try to make more money. You can buy something to sell for a profit or start a Youtube channel or a blog. Or start an eBay business or a coffee shop.
4 – Use 10% of Your Income to Make the World a Better Place
Use the final 10% of your income to make the world a better place. You can donate the money or put the money to work for something important to you.
I know this doesn’t sound like a way to build your financial future. But a lot of financially successful people use this method, so there might be something to it.
We all should do what we can to improve the world we live in. And once you make this a habit you’re going to get a mental boost while helping the world.
5 – Invest 1 Hour Every Day for Your Future
While the first four sections cover the steps in Rohn’s system, I came up with the information in this section myself. And while I’m sure I’m not the first person to come up with this idea, it doesn’t make it less valuable.
If you invest a percentage of the money you earn for your future, you should also invest a percentage of your time to build your future financial security.
Investing one hour every day building your future is only 4.2% of your time. But this small investment pays big returns.
And if you don’t think you have an hour a day, stop watching television and wasting time doing other things.
Conclusion
Building a lifetime of financial security doesn’t have to be hard. It just takes consistency and dedication. And now you have a step-by-step system and plan.
Start by learning how to live on 70% of your income. And use the other 30% to invest, make money, and make the world a better place.
Finally, invest a small amount of your time in your financial future as well. And you can use the 10% you invest in your future financial security with an hour every day to build something special.
Start following these five simple steps today. Your future financial security depends on it.