My father used to say, it isn’t how much you make that counts.  It’s how much you save.  There is a lot to be said about that.  We know a lot of people making double the income we were making.  It is amazing to us that many of them have very little to show for it.  They are still working 10 hour days, and can’t seem to get ahead.  However, when visiting them, they have a flat screen TV in every room.  They have all the latest gadgets.  The latest smart phone, ipad, laptops for every member of the family and wow that new surround sound and entertainment room.  Two cars on lease, a water craft or RV.   However, they are not able to invest but they have all the toys, and then there is the couple making a modest income in the same position.  We can’t seem to get rid of our credit card debt one says to me.  However, I notice that they eat out at lunch everyday and seem to like shopping.  Listen, you’re an adult and you know where the problem lies.  I met a janitor that was a millionaire, I also met an auto mechanic that is a multi-millionaire.  What these people do is they stay within a set budget and they invest the rest never over extending there spending.  Yes, now that they are financially independent they have flat screen TV’s in every room but todays generation wants it all now or nothing.  The key here is you will have it all, but you will have nothing at the end.  Take responsibility for your actions and think about the future.

This is what we want you to consider.  Most of you reading this are a couple.  So this means there are two incomes coming in.  This is what we suggest you do.  Take the lesser of the two income.  So for example if one of you is making 75,000 per year and the other is making 55,000 per year, we suggest, you live off the 55,000 per year and invest the 75,000 dollar income.  I know, it won’t be 75,000 as this income is taxes, so you should be investing approximately 44,000 per year.     Some might say, we can’t do that, for those saying this, then don’t.  But for those that are saying I can, congratulations as you are on your way in being among the fortunate few.  In 10 years, you will experience financial freedom and you will choose to do with your days as you wish.  You will be able to look at those that said, we can’t do that and say I did it.

Before you start this new way of life.  Look at your expenses and together, you and your partner, now decide where to start cutting back.  For example, look at your spending habits and start making real change, brown bag your lunches from now on.  Yes, that means eating a healthy sandwich or left overs from last nights dinner.  Do you really need that entertainment package you spend 100 dollars a month on?  No, install an antenna for 200 dollars and satisfy yourself with that.  No more cable bills.  If you don’t get your favorite TV show that you can’t seem to live without.  Well just subscribe to that one series on that AppleTV you barely use and if you don’t have one, see if you can get it online.  You have cell phones; do you really need that land line?  How about the weekend restaurant, cut that back to once a month or every two months?  How about your shopping habits, do you really need that extra sweater when you have 9 already?  Just stop shopping all together.  Only go when you absolutely need something and only go to purchase that one item.  Ok, how about the two cars, do you really need two cars?  Maybe, maybe not.  Do you smoke?  Are you out of your mind, 10 dollars a pack, not to mention your health.  Need not say more on that.  How about downsizing, we went from a 4 bedroom, 4-bathroom home to a 2 bedroom 1 bathroom.  Yikes, talk about change.  There are many ways in savings, just do it.


Understand neuro-association, I think we will talk about this in our next blog as it is important to link your emotions to the decisions you make.  Understanding this will make you follow through on your decisions.


Now it is one thing to talk about were to save but how about thinking about where to make money.  I rented out a room to a student from a local college.  Perhaps you have a basement that you can rent out as extra income.  How about, working every Saturday morning for a farmer at a farmer’s market to make an extra 75 dollars and perhaps get free produce.  A great way to have fun and get paid, I know from experience as I did it.


There are numerous ways in doing this.  If you don’t start doing this now, simply surrender to the fact that you will work the rest of your days until 65 and you will then get to enjoy possibly a pension while sitting on your rocking chair.  Ok for those that are 65, I’m sorry, I know, you are probably not in a rocking chair but you most probably don’t have the energy and stamina you had when you were 30.  And now that you are 65 and over, do you not wish you were in your 30’s or 40’s and retired?


If you make a conscious decision in making a real change, you will see how fast things start to progress.  You will soon realise wow; we already have a 20% down for an investment property.  Just don’t go spending this on a sail boat or a Winnebago.  When do you know when you can purchase a luxury car, a sports car, a sail boat or a Winnebago?  When you know you can live without working, that your investments generate enough income that you can live the lifestyle you desire and you have enough cash flow above your daily expenses to purchase what it is you want and need.

The amazing thing is, if you continue to practice these habits, you will achieve your goals faster than you think possible.  10 years’ flies by and by the time you know it.  You will be financially independent, free and among “The Fortunate Few”.