I’ve often made reference on My Money Design that time is the only true currency. Even when we think of money as a currency, really all we’re doing with it is buying the convenience of goods and services that we would otherwise have to use our time to obtain.
And while as deep or philosophical as I think I’m being, I was pleasantly surprised to come across a movie a movie with a subtle plot that made me think about how our society looks at the value of time and money.
We spend an awful lot of time on My Money Design talking about not only how to successfully plan for retirement, but even some strategies for how to get there as early as possible. Why? Because I think that financial freedom and the ability for you to choose what you do with your time are some of the most gratifying things you can accomplish in your lifetime.
The big question then is: What is it that I want to do with all this time once I finally have it? – That’s a very good question, and not one to take lightly. Having some post retirement ideas and goals for what you’ll do with yourself is just as important as the planning it took to get you there.
The tagline to My Money Design has always been designing financial freedom. For as long as I’ve been into reading financial books and blogs about money, I’ve seen a lot of them try to answer the question of what is financial freedom. However, I feel as though the weight of this term often gets lost or trivialized.
In this post, we’re going to layout a definition for financial freedom and explain where we need to focus in order to achieve it.
Before you can decide how to invest your money or how much to stash away, it’s important to ask yourself the fundamental question:
• Why care about money?
The answer is harder than you think.
Please don’t hate me. I’m very proud that you’ve been following my advice (and the advice of my PF blog constituents) to start saving for retirement, etc. But now we’re going to talk about something that may require you to dig just a little deeper into those pockets of yours:
“I Don’t Even Have Kids Yet!” Why Do I Care?
I know some of you are pretty young and just graduating college yourself, while others of you may have recently got married and just had children. These are all great positions to be because, like most savings strategies, “more time” is our friend.
However, this post is going to assume that someday when or if you already DO have kids, that you’ll want to send your little Princess or Jedi (… there’s a Star Wars theme going on in my house right now) to college and give them every advantage possible.
In Part 1, we reviewed the fundamental differences between Term and Permanent Life Insurance. Basically Term is cheaper but it expires and gets more expensive as time goes on. Permanent life is way more expensive, but it lasts forever and has the potential to build up cash value.
We concluded with me learning a fact about life insurance that made me question my Variable policy. I’ll explain below what exactly that was and how it caused me to request two new quotes so I could crunch the numbers to determine whether the Term or Variable Life Insurance policy was truly the better deal.
Category: Insurance & Planning
/ Tags: budget
, Death Benefit
, Life Insurance
, Permanent Life
, permanent life insurance
, safety net
, Term Life
, Universal Life
, Variable Life
, Whole Life