The solution to too much or too little weight is solved with generally the same strategies. There are three things needed to maintain an ideal weight: diet, exercise and sleep. Do it right and you stand a good chance of living a long time. Do it right and you increase your chances at high levels of health and happiness. Do it right and your level of happiness should go up significantly. Do it right and you will truly be wealthy.
The word goal has taken on dreaded status. Over the decades I’ve attended several informational and motivational seminars. Whenever the topic of goals comes up, heads duck. It shouldn’t be that way.
I think people dread goals because they feel obligated once they are on paper. There is also some fear of stating your goals because they entail your deepest desires.
The thing is, goals should change. Not every goal deserves consideration. It would be nice to skydive. Sure it would. But after careful consideration other goals might interest you more. More family time might be the goal you wish to pursue instead and the rewards (in your mind) might be better than falling from 10,000 feet.
The literature is largely silent on what you should do once you attain financial independence(FI). Plenty has been written about building wealth and how much is needed to reach FI and how much you can safely withdraw each year in retirement.
Plenty of debate has also revolved around paying off the mortgage — any debt for that matter — versus plowing the excess payments into investments that pretend to offer a return greater than the interest rate on your debt. While investments can provide outsized returns, the return isn’t guaranteed; the interest on the debt is.
As much as we preach about eliminating debt as part of a smart wealth building program designed for FI, there are some benefits to having certain kinds of debt. Risks are always present, but the advantage may be worth the risk. Buying a home without debt ever would mean most people would never have a chance at home ownership. And you can forget about income properties if you can’t use leverage to start your real estate empire.
A mortgage (all debt) does have one powerful advantage most people overlook. Debt is the #1 motivator when it comes to getting people to sacrifice time with family and friends. Debt motivates you to work harder than you ever would if debt demands were not hanging over your head.
Paying off the mortgage is the American Dream and the first step toward retirement; it’s harder to retire with a mortgage payment blowing a hole through a fixed budget. Owning your home is the foundation of any vibrant financial plan. Until your home is unencumbered (without a mortgage) the bank still owns it in a manner of speaking (and they’ll remind you of it if you miss a payment).
Still, a home mortgage has its benefits. The traditional reasons to carry mortgage debt are bad reasons to carry the liability, but there are still a few good reasons.
We will review the traditional reasons for borrowing against your home and why the benefit is perceived rather than real. We will finish with the three reasons a mortgage can help you build wealth.
One of the most difficult decisions you can make as you struggle toward financial independence is deciding between paying off the mortgage quickly or investing the excess funds instead. The water is more muddy when we see a roaring stock market for as far back as the eye can see coupled with low interest rates. The answer seems simple and obvious: pay off the mortgage as slowly as possible and invest the difference in broad market-based index funds.
You might also think people well past the mile-marker of financial independence would have an even easier choice. Once the risk of a market decline passes due to your excessive net worth, it is tempting to automatically choose the course with the greatest opportunity for maximum gain.
Your favorite accountant has struggles with the same decision: pay it off or invest. It all came to a head recently when the topic came up on Facebook. I gave my opinion and the fur flew. Before long my inbox was stuffed with requests for a fully fleshed out explanation of my position.
Retirement goals and financial independence are important issues. If you’re rich you don’t quit because the “rich” mindset never quits. Before you amass your first dollar, you are already rich if your mindset is right. Your body just has to wait for the money to catch up.
That is why I changed the title of this post. Winning the game of life is the most important part of life. Money plays a modest role. The quality of your life, your dreams, career, goals, family, health and joy, are what count. “Rich” means you’re always looking for the next challenge when a task is complete because you know that it is what brings meaning to life. Rich people never settle for mediocre.
My adrenaline was pumping as I entered the room full of judges and FVTC staff. My entrepreneurship teacher was also running the show. I had to make him proud as my entrepreneurship teacher is the reason I’ve come so far. My pitch went great and the judges seemed interested in my teaching style I created and the opportunities for people in the valley and around the world to become employed by me. I’m an ambitious little thing that doesn’t let my size determine how big my dreams can be.
I won first place at the Fox Trap Pitch Contest. This was one of the first times I’ve seen myself succeed at something and then be told that I need to continue with my plan. I learned many things when I prepared and presented my 90-second pitch. The most important thing I learned was that writing a pitch is nearly identical in writing an essay for a scholarship.