Wealth is the worth of all the assets you own , minus any debts. A person with a high net worth is defined as one who lives comfortably for at minimum of 5 years with no work. There is no guarantee that anyone in their lifetime will be wealthy, however, you can be financially secure. Financially empowered means being in charge over your financial situation, spending money in a responsible manner, buying what you need more often than things you want and making goals for your future Financial empowerment .
Here are five methods to help you become financially independent:
- Be homeowners.Being a homeowner improves the credit rating of your home, shows you are a responsible consumer, grants the tax deduction, improves the value of your assets, and is an asset that appreciates in time and provide an equity.
- Purchase insurance.Purchase life, health as well as disability insurance. Many people end up into debt due to medical expenses because they don’t possess life insurance. Life insurance is essential since medical expenses increase by between 10 and 20% per year. The disability insurance (short-term or long-term) will assist your case in the unfortunate event that that you get sick and need to take off work for a long amount of time. This will assist you in your recuperate as you won’t be worried about how your expenses are paid during this period.
- Start a company.Find out what you love to do that you are able to do better than everything else. You won’t be financially successful when you work for an employer unless you’re one of the lucky few who purchased a lot of stock during their time at Target Wal-Mart or AOL. Make sure you do your homework prior to starting your own business, and then take small steps. Begin your business from your own home. There are tax-free deductions available for businesses that are home-based. If you earn enough money, then you can apply for an investment loan to start your personal office. Buy an ebook Rich Dad, Poor Dad by Robert Kiyosaki.
- Purchase investment property.Every financial expert millionaires and billionaires have discussed it. They all have one thing in their common. They all have investment properties. If you’re not sure where to begin make sure you research the subject by purchasing two or more books about investing in properties Join an estate association or watch financial investment programs and learn how to begin. Investment properties generate cash flow which can be utilized to build wealth and opens up greater opportunities to be offered to you.
- Prepare to save for retirement.A lot of Americans are today working over retirement because they don’t have enough savings or retirement savings. When one takes a look at their lives to see how much they’ve achieved, it’s sad to realize that they’ve got nothing to be proud of. Many are still in debt on their home, don’t have savings, and are left with little or no savings in their retirement account. The majority of you worked your life to pay your bills. This isn’t the way life should be. It is best to be a hard worker, have fun before retiring, and be able to truly enjoy the rest of your life.