Financial Roadmap

1.Generate Revenue

Start making money. Plain and simple. Most of us start going this when we get our first jobs. As a measure in the United States, the unemployment rate hovers between 4-10%. Which means if you are generating revenue a.k.a. have a job you are in the top 90-96% of the population in the United States

2. Be profitable

This is a big step. No matter how much money you make we always seems to spend the same amount. The discipline it takes to make money per month or year is rare. About 32% of Americans have no savings account. So if you are putting $1 in your savings account per month you are in the top 68% of Americans.

3. Savings account

“Just 18 percent of Americans say they could live off their savings for at least six months.”
— https://www.bankrate.com/banking/savings/financial-security-june-2019/

The rule of thumb is to have at least 3 months worth of living expenses in the savings for emergency purposes. Their are many reasons why it is important to have at least 3-6 months worth of livings expenses un touched and ready to have in case of emergency. If we have a unexpected job loss / emergency and don’t have 3-6 months to catch our breath a lot of negative things start to happen:

  1. We are forced to get a job fast. We dont give ourselves time to negotiate and find the best job for us.

  2. We start to freak out about the fact we dont have an emergency fund. This is the last thing you want in a emergency, to feel like there is another emergency.

  3. We have forced to sell assets. This most likely means that it will be at a loss. We have assets that we want to time out and sell at the most advantageous time we can, not when we are desperate.

This is where the quote the the “rich get richer” comes from. When your money starts making money. A new skill set is learned here. Most people are trading their time and knowledge for money. When you trade your knowledge and money for more money, that is when things start to take off.

There are so many types of investment vehicles the is it hard to name here but the key I found out is to really understand the types of investments you are doing. With knowledge comes power.

4. Investments