Passive income is something that we all want to master especially if we want to take control of our financial destiny. Financial services are full of a range of products such as online fast cash loans as a way to encourage people to spend. However, you can also use passive income as a way to spend in a way that suits you. Here is why dividends are the best part of passive income that many of us do not know how to master but it is relatively easy to do so.
Lately there have been a number of great posts and strong opinions about having an emergency fund, and I wanted to weigh in with my own opinion and experiences. I have had a long a standing love-hate relationship with emergency funds. Sure, you need them for critical situations! But my problem (and I think this is where a lot of people struggle) is how to save up enough. Depending on which advice you subscribe to, the recommendations can be anything from 3 to 12 months of your gross monthly income. If you’re a typical American household making $60,000 per year, that’s anywhere from $15,000 to $60,000 that we need to have in the bank! Ouch! Is it any wonder we fail at this?
Without a doubt, Rich Dad Poor Dad has become one of the most controversial personal finance books of modern times. Some people have praised it as the revolutionary how-to guide for creating ultimate riches through passive income. Others despised what they read because Kiyosaki challenged the conventional system for how people make a living and live their lives.
When was the last time you were told that going to college and becoming an employee for someone else for the next 30 years is a terrible plan? Or that the only reasons you became an employee in the first place was out of your own fear and greed of money? Or that your house is NOT one of your greatest assets?
Rich Dad Poor Dad is NOT a book that will explain to you what a 401k or an IRA is. In fact, it will try to discourage you from putting money in your retirement account at all. Instead, Rich Dad Poor Dad offers you something completely different – it will make you think! It will challenge you to reconsider what you’re doing with your money, life, and what you’re doing to reach your maximum earning potential!
While I was browsing through the search terms that lead people to my blog, I noticed that “retire on 500K” came up more than once. Unfortunately it lead them to one of my past blog posts called Retiring on the One-Million Dollar Myth which doesn’t really specifically address the question (the post was more about reviewing what your individual needs during retirement will be).
Feeling a little bit guilty for not providing them with some definitive advice they could use, I decided to give them what they were looking for and start a fresh new blog post – this one!
While I am certainly NOT in any way a financial advisor (big disclaimer!), I’d still like to take a regular guy’s approach at answering the question of how to retire on 500K. I realize for many people that saving up $500,000 will not only be a huge challenge, but it will also be the reality of what their maximum nest egg size may grow to be. No matter what your situation is, I’d still like to help you by exploring the options and making the most of them.
In my previous post about why we care about money, we explored the reasons why saving money might be important beyond simply wanting more material possessions.
In this post, I’d like to explore the more specific topic of why it is that we want to retire.