The Importance Of Income

Category: Finance.

"We re not saving enough for retirement" "Boomers Unprepared" .

Every time I turn on the news or open a newspaper or magazine there is some article talking about savings rates, or debt rates or whether it s better to save than to invest. "Lower Expectations" is the Wrong Advice. This is the topic of just about every article on financial planning I ve read in the last week. The ones that really get me wound up are the ones that tell the reader or listener that they need to lower their expectations for retirement because they aren t saving enough. It s all bordering on financial malpractice as far as I can tell. Ugggh! ! The Importance of Income.

Must you rely solely on savings? First, what does it take to retire? What if you have money coming into your household to pay for the lifestyle you desire to live? Hold On Tight To Your Dreams. Any lifestyle- whether you are working or not- takes income of course, and when you have income coming in from sources that don t require you to go to work to earn them, then you would be financially independent- not retired. Second, if you give up on your dreams, you die- yes die. How about showing people what they can do to reach their goals?

Many studies have demonstrated the power of goals, so why on earth are the" experts" telling people to reduce their expectations and" get real" ? Why not give them some options? No one. If people continue to hear they can t have this or they shouldn t do that, then who is the winner? This is the problem: too many people have been told for too long that they can t do things or they better not because it s risky so they don t even try. From Dream to Action. Instead, they settle for mediocrity and then look to the government or the banks to help them out because they still feel they are entitled to their life of financial freedoms.

It takes a dream to inspire someone to action, and action to make a dream come true( financially speaking) . Saving money, is not as, for most people strong an incentive as the immediate gratification that helps them feel better in the moment. You have to use all your resources( financial and otherwise) by taking your existing income and using it to create wealth, which creates more income which creates more wealth and so on and so on. If you are being told you can t have something, or maybe you should lower your expectations, then it s even more likely that you will want to enjoy the short- term rewards from spending money on something you want today. The answer to how to get out of debt and save money at the same time is really quite simple when you consider the emotion and psychology of goals and immediate gratification. The Power of a Complete Plan. The answer is not to look at getting out of debt at all, and not to look at saving money at all.

I m not talking about income that comes from a second or third job, but income that comes from setting powerful personal lifestyle goals and surveying all your available assets, then implementing some systems to build a foundation where your current resources are working to create income. The answer is to look at creating income. It s the power of a sequence and the power of having a full plan, not just several pieces of the picture taken independently. To effectively answer the debt/ savings question, you need to have a whole plan that starts with what income you want to live the life you want- then never ever, ever give up on that dream.