Tuesday, November 15, 2016

5 Super Ways to Become Financially Empowered

Financial Empowerment 
Wealth is defined as the value of what you owe minus any debts. A wealthy person is described as someone who can live comfortably for a least five years without working. Not everyone during his or her lifetime may become wealthy but you can become financially empowered. 

Financially empowered is being in control of your finances, spending your money responsibly, buy needs more often than buying wants, and setting goals for your future. Here are 5 easy ways to become financially empowered and achieve your financial goals.

Become a Homeowner
Becoming a homeowner increases your credit score, proves that you are a responsible spender, provides a tax write-off, increases your net worth, and provides you with an asset that will appreciate over time which will provide you with equity.

Get Protection
Buy health, life, homeowners or renters and disability insurance. Many people get in debt from medical costs because they do not have life insurance. Life insurance is critical because medical costs increase by 10 to 20% each year. Disability insurance (short-term and long-term) will help you in the event you become seriously ill and have to be off work for an extended period of time. This will help you to recover because you will not have to worry about how your bills will be paid during this time.

Start a Business
Find out what your passion is, discover what you love to do more than anything else. You will not become financially empowered by working for someone else unless you were one of the lucky people who bought tons of stock while working at Target, Wal-Mart, Facebook or Microsoft.

Do your research before starting your business and take small steps. Start your business in your home; there are many tax write-offs for home based businesses. Once you generate enough income then secure a loan to open your own office. Use resources from the SBA at www.sba.gov.

Purchase Investment Property
All of the financial experts, millionaires and billionaires have talked about it. They all have the same thing in common. They all own investment property. If you are not sure how to begin, do your research, buy two or three books on buying investment property, join a real estate group, listen to financial investment shows, attend seminars and find out the best way to get started. Investment property generates cash flow that can be used to generate wealth and allows more opportunities to become available to you.

Plan for your retirement
Many Americans have to work past retirement age or retire and have to go back to work because they do not have enough savings for retirement. Consult a financial advisor or financial planner to assist you.

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