The key to financial freedom is starting early, saving your money in a consistent manner and not letting brokers, financial advisors or other 3rd parties take too big of a slice of what you’re saving.
These charts and inspiration come from an article on Entrepreneur.com written by Tom Zgainer.
Financial freedom is not impossible. You just have to be willing and disciplined, and stick to it for the long-haul. Here are something you can do to improve your changes of achieving that so desired financial freedom:
- Start saving early!
- Catch up to where you should be now and use technology to automate it
- Beware of and avoid excessive 3rd party fees (these can often be hidden in the fine print)
- Stay away from expensive “managed” funds and stick to the lower-cost index funds
- Max out your tax advantages (get a tax advisor, it will be worth it in the long run!)
- No need for expensive life insurance.
This chart shows how much you need to save per year if you plan on having $1 million for retirement (age 65). (assuming a 7% annual return and a well balanced/diversified portfolio)
This chart shows you what happens when you incur excessive annual fees.
We all know that nothing in life is free, but as you can see it’s critical to get your annual fees as low as possible. It’s really difficult to know how much you’re ACTUALLY paying in fees!