I am very excited about this subject. We are in the third week of this important topic. Please review the previous two to make sure that you are following the plan. That’s what this is all about, having a PLAN. We are almost done with the first month of the year and it sure does go by fast. Many people unfortunately have given up already on their New Year’s resolutions because they did not put a plan together.
As we stated earlier, we are following the scripture from Jeremiah 29:11 and continuing to break down the word “PROSPER”. We previously covered the importance of getting organized and also the freedom of becoming debt-free.
Make a commitment, if you have not already, to become debt-free. After you’ve accomplished this goal, have a celebration and a debt-free party. You now have freedom and it’s time to start building towards wealth. What a great accomplishment this is and you are now ready to move to the next level.
At this point, you should already have an emergency fund put away in the amount of $1000. Keep in mind, this fund is only for emergencies; going out to dinner is not an emergency. Your next step now is to bring this to a higher level. I’m excited to share these next steps on building wealth.
1) Build up your emergency fund
Being with RMS, we have the absolute blessing of building residual income which means we can still have income even without working. This definitely is a true gift for us, however, we never know what life will bring us. Make a commitment to put away 3 to 6 months of what you make and put that into a true emergency fund. This way, if a storm comes your way, you now have the financial resources to get you through it. This is something that you would put into a regular money market account or savings account. You are not concerned about collecting interest. You want to make sure you have these funds available in case an emergency shows up. This is what I call “Peace of mind.“
2) Start putting away 15% of your income towards long-term investments
This is something that I have been doing for a long period of time. I started a SEP (Simplified Employee Pension) plan and built myself up to putting away the max amount that we can according to tax laws.
This is a retirement plan designed for business owners and independent contractors. It is perfect for our business. You actually get to deduct the amount that you’re putting in off your taxes every year. They have recently increased the amount that you can give to $57,000 annually. Can you imagine if you committed to this and did it for over a period of 10 years?
Get together with a fee-based only financial planner that has a good track record and credibility. They can put you on a plan to help you to attain your goals.
It’s time to really get serious about building wealth. With RMS, we have an incredible opportunity to do this and if you really commit, you can become a multimillionaire. It’s all up to you.
3) Make sure your home is a blessing and not a curse
Unfortunately, so many people purchase a home when they really have no business doing so. Their home ends up becoming a curse rather than a blessing. Make sure you do this the right way.
Purchase a home that you know you can afford. Instead of worrying about what the monthly payments are, start thinking about how fast you can pay it off.
Here is my philosophy on this. When buying a home, it’s important that you are debt-free and you have an emergency fund. Your plan is to put 20% down on the home you are purchasing. Get a mortgage for 15 years and make sure it is a fixed rate with no early payoff penalty. With this philosophy, now your new home becomes a blessing. Make sure you put a plan together to get it paid off much sooner. I look forward to you celebrating a paid off mortgage.
Yes, It’s time for you to PROSPER! Be a good steward of the money that you are receiving. It’s incredible the kind of life that you can have if you put the proper plan in place. Put a good financial plan in place and let’s start building wealth. Now is your time!!
Have a super prosperous week!
RICH NORTON
Regional Sales Manager RMS
rmsnpc.com
*Photo by Circe Denyer (publicdomainpictures.net)
