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FInancial freedom and security for BIGG Sucess

Financial Freedom is the New Financial Security

FInancial freedom and security for BIGG Sucess
Listen to this post! Click Play to hear George & Mary-Lynn on The BIGG Success Show Podcast (Duration 6:00)

When it comes to money, people have traditionally fallen into two camps:

Some seek financial freedom.

Others choose financial security.

[Mary-Lynn] We split right down the middle on that one – I’m all about financial security.

[George] And I’m a financial freedom guy.

[Mary-Lynn] Which makes decision-making interesting. Obviously, I’m more risk averse than George.

But here’s something we’ve noticed:

In today’s financial climate, you have to go for
financial freedom if you want financial security.

Here’s what led us to this conclusion:

3 Reasons Why Financial Freedom is the New Financial Security

 

  • “Generational returns” are abysmal for most generations

We ran some calculations. We THOUGHT we’d prove that the people who stayed the course after the stock market crash of 2008 were doing just fine.

But we were wrong!

We assumed people started investing a set amount each year, starting at the age of 25. Then we looked at their returns at the close of last year.

We found that people who stayed the course did better than those who got out. However, the results are different for different generations.

People who are now 60 plus are doing okay on their portfolios. But people between the ages of 31 and 59 are underperforming traditional expectations of stock market returns.

So these people may need to be careful using old models of financial planning.

(This is a good place to interject something you’ll often hear us say – you should talk with your own advisors about your specific situation.)

  • Social security does not equal financial security

We saw an interesting article on the U.S. News and World Report site called 10 Reasons to Worry About Your Retirement.

They list a number of things which are in your control. But what really caught our attention is that…

Only 18% of Americans plan to retire
with over a million dollars in assets.

Which essentially means – most Americans are largely counting on Social Security as their primary source of financial security.

BIGG Success is the place for BIGG goal-getters. We know you’re part of the elite group wanting financial freedom – which we’ll define as a nest-egg greater than a million dollars.

  • Volatility

We caught an interview with Jack Bogle on CNBC. He’s the founder of Vanguard, one of the best mutual fund families. He says to…

“Prepare for at least two declines of 25-30 percent,
maybe even 50 percent, in the coming decade.”

The Dow fell about 54% between October 2007 and March 2009. So we’re talking about history repeating itself here if Bogle turns out to be right.

Invest in assets you can control

 

So the question is: What can you do about it?

How can you put yourself on the path to financial freedom – the new financial security? The answer is…

Invest in assets you can control.

Of course, you can’t control everything that happens. But for example – when you own your own business, you can create a cash flow which far exceeds anything you will get from owning stocks.

But don’t jump in with both feet – if you have a job, try to find a way to start part-time. Or tweak your business model so it requires less capital.

Contrary to what you often hear, you don’t have to take a lot of risk today to make a lot of money.

In fact, that’s one of the secrets of entrepreneurs – they’re not risk lovers. They’re great risk managers.

That’s the key – focus on making your downside acceptable so you can move forward with no fear. It leads to BIGG success.

We talk more about this in our Special Report – DECIDE! 5 Keys to Know What to Do Next. Simply sign up below to get FREE instant access!

Direct link to The Bigg Success Show audio file | podcast:
http://traffic.libsyn.com/biggsuccess/00868-070213.mp3

Image in this post from stock.xchng

The Trap That Keeps You from being Financially Free

money_trapYou’re probably familiar with the old saying, “Be careful what you wish for because you might just get it.”

Bigg success is life on your own terms. The terms we use to define our bigg success are incredibly important.

When we get what we wished for, it better be what we really wanted!

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For example, we may seek financial security. How do you define financial security? Is that what you really want? Or is there a better term for what you seek? Are your actions consistent with your definition?

These are a few of the questions you might ask about a term which is a goal.

Financial security

Financial security means safety. You have a refuge from any storm. This is the reason a lot of people like having a regular job. They feel like it gives them some sense of security.

We often confuse financial security with financial stability. One of the reasons we like that job is it provides a steady income. That’s not security; it’s stability.

This highlights the importance of understanding what a term really means to you.

Does a job or a career offer you financial security? We think it doesn’t.

You have to create financial security for yourself. But that’s just the first level. You may really want more than just safety.

Financial independence

You may seek financial independence. You want to be self-reliant. You don’t want to depend on anyone or anything to meet your financial needs.

You’re able to live a comfortable life. You may have a job but you also have investments or other sources of income in case something happens with your career.

Financial freedom

The next step up is financial freedom. You’re free to live the life you really want to live. Your income exceeds your lifestyle costs by a significant margin.

The trap that keeps people from financial freedom

Randy Jones, author of a book we highly recommend to you, The Richest Man in Town, wrote about the trap that keeps many people from reaching financial freedom on his blog a while back. He said:

A stable salary can be addictive: like a drug, it feels good, helps you cope with the ups and downs of life, and it is very hard to give up. But dependence on a salary is a major impediment to becoming the richest person in town. The regular fix of a paycheck from the other guy makes you risk-averse, and the ability to take risks is one of the qualities that defines an RMIT.”

So if you want to be free from money worries, you have to take risks. Risk is the opposite of security. But you have to take those risks to reach the level of financial freedom.

And by our definitions, a person who reaches the level of financial freedom is also financially secure … and then some.

No job can make you financially secure. No business can do it. No investment can do it. You have to do it by putting all the pieces together.

It starts by defining bigg success and then going for it!

You’ve heard our terms for money. What are your terms?

Share that by leaving a comment below, e-mailing us at bigginfo@biggsuccess.com or calling us at 888.455.BIGG (2444).

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Thanks so much for the gift of your time today. Please join us next time when we talk about an old-fashioned tool that increases your productivity. Until then, here’s to your bigg success!

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Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00481-091509.mp3

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(Image in today's post by nusrin)