3 ways to reach Financial Freedom faster

3 ways to reach Financial Freedom faster

Imagine one day you wake up and you don’t have to work any more.

Your investments are generating so much money that your money is actually producing more money than your salary.

In plain english, your money is making enough money to cover your expenses. This is also known as financial independence. 

Can everyone get there? YUP! 

You’re never too young to start, or too old to start.

How?

First you need to know your rough FI number which is about 25x your annual expenses.

If you’re in my ‘Money, baby!’ program, you already know what your annual expenses look like.

So if your annual expenses are $40,000, 25x that is 1 million dollars.

That means you need 1 million invested in order for your investments to cover your basic needs.

Already investing? Great! You’re ahead of the game!

Want to have an idea of how long it will take?

Using the rule of 72 and an average annual return rate of 8%, your money will double every 9 years. 

If you are starting with $100,000, in 9 years you’ll have roughly $200,000. In 18 years, $400,000, 27 years $800,000 and 36 years you’ll cross the million dollar threshold at $1.6million.

What if you don’t have 36 years to wait? Or do you want to get there sooner?

Here are a few ways you can:

  1. Cut monthly expenses. 

  2. Make more money.

  3. Combination of both.


This will shorten the amount of time it takes you to get to your crossover point, but remember, you also want to enjoy the life you have. The great thing about all this is its your life and you get to decide how you want it to go and what goals you’re working towards.

At bare minimum - I want to help you be able to retire successfully when you want to retire and make sure you have enough invested to do so. 

Most people believe hitting some mythical number in their spreadsheet will ultimately = happiness. If you’re 100% clear on your values and what you’re working towards and also how you want to enjoy life today you’ll be all set!

If you're ready to take control over your finances and set yourself up with an effortless money plan, send me a message and let's see if Money, baby! is a good fit for you.

xoxo,
Gwen

9 reasons why you want to be tracking your net worth

We don't go around asking each other what our net worth is BUT it's one of the best financial tools you can keep in your tool box. And the earlier you start tracking it, the better it will serve you. Watch this video below or read about the 9 reasons why you want to be tracking your net worth:



  1. A good indication of your overall financial health - the 30,000 foot view.

  1. The amount of income you make is part of your overall picture but it’s not the end all be all. 

  2. It is a source of motivation as it tracks your progress

  3. You have an easy place to track all of your investments.

  4. It helps you ditch debt! 

  5. You'll make better use of your money.

  6. It will help you start thinking about how your financial decisions impact your net worth.

  7. It may help you get approved for a loan or other financial decisions.

  8. It makes it easy to track progress over a period of time.

So there you have it. I like to track my net worth on personalcapital.com because it's easy to use and easy to set up.

One of my goals in my program 'Money, baby!' is to help women build a great financial fortress on a solid foundation. If you are an ambitious, entrepreneurial woman come join the community learning how to gain financial clarity and put a financial freedom plan into action.

e-mail me at guinevere@roilhighness.com with the subject line "Money, baby!"

xox,
Gwen


Saving $$$ with Black Friday, Cyber Monday and the holidays (plus great ideas for DIY gifts)

Saving $$$ with Black Friday, Cyber Monday and the holidays (plus great ideas for DIY gifts)
As I was sitting here, making a list of the people I am gifting this year and writing out a budget to stick to, I thought this might be helpful for someone else too. So if you want to save some money or you just need great cost saving ideas that are gifts people will actually use, here you go!

First up - I suggest making a list or excel spreadsheet of the people you usually gift. And I'm talking a LIST - like every single person from your mail carrier to your hairstylist to your gram and gramps. Now of course this doesn't mean you HAVE to gift the world, but making a list is a great way to visually see who you gift to, see the money you're spending and also will make next year's holidays easier.

Next, set a budget! Yes, I said the "B" word O.M.G. But listen, if you've got debt and you're working hard to pay it down, it makes NO sense to go INTO debt for the holidays as you're just lengthening the amount of time you'll be paying interest. A simple $25 gift can easily become a $50 gift when you include interest. 

So, write a total number you want to spend and then try to list out what you want to spend on each person. Some will be more than others and that's ok! 

Ok, then we'll figure out what we're actually gifting them! If you're a DIYer, I've found this to be the best way to make a large amount of personalized gifts that don't break the bank.

I found that once I made my list, it was getting a little ridiculous. Remember that YOU and your financial goals are important. Words can be the simplest, most meaningful gift of all so don't underestimate the power of a hand written note or card.

Also don't underestimate the power of time - it's one of the resources we can never get back and it is valued more than gold. Gift a walk in the park with a friend, a picnic, or a phone call. You don't even have to tell them "this is my gift for you" just do it and see how it makes you both feel.

Now that you have your list of people you're gifting this year, the amount you want to say within per person and the amount total you are budgeting for, add 10%. Trust me - it's nice to have this cushion and often times we need it. 


xoxoxo,
Gwen


Have you given your money a job?

Have you given your money a job?
I am willing to bet that money stresses you out.

Why? Because I know for a fact that over 70% of people don't have more than $1000 in their savings for an emergency.

So what happens when an emergency comes up and it costs more than $1000 OR if you have multiple emergencies right in a row?

We tap into that savings account and then to cover the rest we take on more debt.

I. Have. Been. There.

It's not fun and honestly it's a stress I do not need in my life.

So how do we change that?

Let's break down the payday cycle of life in this short video:


So what I want to know is, which way feels better? When your money has a plan, or when it doesn't? I think you can guess where I'm going with this one....

And YES it's possible with irregular income, freelance income, any kind of income you can give your money a plan and get out of the stress cycle.

So, I feel like if you get this right, 2022 and the years to come could be KILLER for you. But...if you get this wrong, it's just the hamster wheel that keeps on spinning.

If you want more help with this, just shoot me a message here and let's chat to see if I can do to help.

xox,
Gwen

What investments are best for beginners?

What investments are best for beginners?
Raise your hand if you’ve experienced analysis paralysis when it comes to investing? Definitely been there, done that.....for years!

Open an account? Sure, easy peasy.

Transfer money from bank account? Done.

Choose investments? BAIL, BAIL, BAIL! hahah Just Kidding.

I get it, the actual act of selecting what to put your money in can be intimidating but it doesn’t have to be!

Since I’m not a financial advisor and I don’t know your specific situation, I can’t tell you what you should invest in but here’s what you can look for when beginning:

1. Low cost index funds will save you money and allow you to diversify your funds all in one spot. They are an easy, hands-off way to invest in the stock market. This is what took the scary out of investing for me.

Index funds track various indexes and are made up of stocks that mirror the companies performance - like the S&P500. 

Low cost index funds are inexpensive because they are automated and designed to follow the shifts in value of an index.  Because these funds are not actively managed by a well paid team of analysts, they don't cost the investor as much. Winning!

For example, the average annual expense ratio for stock index funds in 2016 was .09% while the average annual expense ratio for actively managed stock funds was .86%. Now you might be thinking "that's not a huge difference", but over time this adds up and will take away from what you're able to earn on your investments.

The S&P although wildly popular, isn't the only index fund in town. You can select various index funds based on the categories of stocks the house. There are index funds based on size of companies, funds based on geographical area, the type of businesses they include, domestic versus foreign, and even by market opportunity.

Remember, not every index fund is low cost.

2. Look for funds that have low investment minimums or zero minimums. Sometimes the minimum required to invest can be a few thousand dollars to start.

3. Don’t pay someone to do this for you just because you’re a newbie. You can totally learn how to invest! And the great thing is, you can learn as you go and adjust accordingly.

4. Average return rates over time. For example, the VTSAX has returned an average of 8% since it’s inception. The VFIAX, 7.93%. But these are just examples and you can easily pull these statistics up on any investing platform or even by throwing it into a Google search. 

5. Consider how much time you have. The younger you are, the more risk you can potentially take (but don’t have to). With that being said, this is even more of a reason just to start now. The earlier the better and the more time your investments have to grow, the more compounding interest works for you.

And remember, investing is a long game. There may be dips over time but historically you can track funds to see their overall growth. Don't get scared if you see a decrease in earnings, as long as you're not very close to retirement, you have time to ride it out. It will come back up.

Most importantly, pick one and start! You can learn more as you go and adjust as needed. You’ve got this and I believe in you.

For more details, grab my free guide 
“Investing for Beginners” 

xoxo,
Gwen

 
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