Yahoo Finance I’m a Self-Made Millionaire: 7 Lessons I Learned to Achieve Financial Freedom in Retirement
According to the most recent Survey of Consumer Finances from the Federal Reserve, the media savings account balance for American households was $87,000. Since this typically isn’t enough to retire on, GOBankingRates spoke with self-made millionaires to learn their most empowering financial lessons on the road to a comfortable retirement.
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Wealthy people know the best money secrets. Learn how to copy them.
Early Retirement Can Be Boring
“After my $100 million startup exit, I retired for a whopping total of two weeks and went right back into tech because I was restless and bored,” said Brenda Christensen, CEO of Stellar Public Relations.
If your goal is to build wealth to leave the workforce sooner, you may want to think about how you’ll be spending your free time. You should focus on finding hobbies and experiences you’re passionate about to have something to look forward to.
This leads us to the next point…
You Have to Find Investments You’re Passionate About
“In terms of financial advice, I found that my investments, where I had an interest and a passion (real estate, exotic and antique cars), served me well mentally and financially,” Christensen said.
While you can invest your money to build wealth in various ways, the goal is to find assets you both understand and believe in so that you’re not constantly stressed about what’s happening with your savings.
“I did invest in the stock market once but took a hit when the tech bubble burst and shied away from it ever since,” Christensen said.
You’ll want to take the time to research different investing strategies so that you find ways to grow your money based on your risk tolerance and beliefs.
3. Your Financial Worries Don’t Go Away
Christensen thought that her worries would be over with financial freedom, but she ended up dealing with other unexpected situations.
Some of her issues:
Being mentally under-stimulated and unsure of how to spend her time.
A banking error led to money being stolen from her account.
Her dream home south of Malibu had problems, like wind dumping sand on the driveway that would block her exit.
Christensen elaborated on the banking error:A mid-six-figure amount being withdrawn from her account, which led to a stressful period.
Christensen concluded, “The myth that money solves all of your problems is just that, a myth.”
It’s worth pointing out that expecting money to solve all of our problems doesn’t always work out and there could be other things that pop up.
Check Out: 5 Places in America To Retire That Are Just as Cheap as Mexico, Portugal and Costa Rica
You Must Look For Business Help
“Ask for help early in your business cycle so you have the foundation in place when things change (sometimes for the better, sometimes for the worse),” said Pamela Resser, owner of British Swim School.
Resser hired business help to get guidance at every stage of the company. If you’re looking to start a business to aim for financial freedom, you’ll want to keep this in mind because it’s challenging to attempt to do everything independently.
You Must Work With the Proper Financial Professionals
“Make sure to work with an advisor or multiple advisors as your needs change,” Resser said. “I currently work with an accountant, a financial advisor and a small business coach to help me understand the financial picture.”
As you level up with your finances, you’ll want to start thinking about the financial professions that you need to have on your side. If you don’t take care of your finances, taxes and general accounting, you could end up with significant money problems down the road.
You Should Treat Yourself On The Journey
Resser said that being a small business owner can be scary and that it’s important to reward your hard work so that you can stay focused. Working towards financial freedom will be exhausting and time consuming, so you want to ensure that you always have something to look forward to.
Resser suggested that you take a trip, buy artwork or splurge on a dinner once in a while. You want to enjoy the journey as much as you do the destination.
Start Saving Early
“Start saving as early as possible and continue to save even in the tough times,” Resser said. “Personally, I like setting things up on automatic transfer.”
Building financial freedom will require discipline and time, so you’ll want to start saving up as soon as possible. Resser set her automated savings to $25 until she started making real money.
“Get in the habit early and take advantage of any matching program your employer offers,” Resser said.
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: 7 Lessons I Learned to Achieve Financial Freedom in Retirement
