Last year when the Navy recruiters came over to our house the one recruiter brought up about how he wished his parents would have taught him the things we are teaching our boys. I told him that is why we are teaching our boys these lessons and why I am sharing it with the world with my Podcast, Blog and my book to be released hopefully before 2021.
The recruiter talked about how he paid his debt off differently than my method and it took him a lot longer to get debt free but he said he got such a good feeling when they reached debt freedom. He was now at the early stage of having some extra money but his wife was wanting to buy a new car.
We teach our boys that when they have any extra money leftover after they are completely debt free and their Emergency Fund is funded completely to Invest the money in their Brokerage Account.
They can also Invest in other Asset forms if they like, it is their choice. The main goal that we keep stressing to them is to work towards 10 times at least of their future expenses. So, if they think their future expenses at retirement will be $75,000 a year then they would need that amount times 10 plus their Emergency Fund of $50,000 for a total of $800,000.
If they want to retire-early we are suggesting they work towards 25 times their future expenses in their Brokerage Account since they won’t have their Retirement fully funded.
They of course can choose to have alternates to any of the rules that we teach them towards their Financial Freedom goals. Let’s say they decide to retire early and work towards 25 times their future expenses in both their Brokerage Account and Retirement funds accounts, plus their Emergency Fund. Nothing wrong with that either.
They just need to have enough in their Brokerage Account or in streams of Passive Income to cover their expenses until they can touch any of their Retirement funds. Darlene and myself hope to never touch our Retirement funds or at least not till I am in my 70’s.
As always, I am not giving you any Financial Advice and you should seek advice from your Professional Advisors to see what is best for your situation. See my Disclaimer at MillsWay.com. This is for entertainment only.
Passive Income streams is another choice for them to invest some of their extra income into or their extra time. If you have read any of my past work or listened to my Podcasts then you know I am a fan of having many streams of passive income. Some people encourage people to have at least three forms and we encourage our boys to have at least six forms of passive income.
One of the reasons I like them to put their money into their Brokerage Account is so they can invest into Dividend Stocks that pay Dividends either monthly or quarterly. Plus, they could go up in value but we are mostly wanting the dividends paid out on time and to even grow their dividends paid out. We like to spread out Dividend investments into many different sectors, companies and funds so we are diversified.
Being diversified in their brokerage accounts and other investments helps so if there is a down turn in the Real Estate Market for instance then they won’t get hurt as bad if Real Estate is only one of ten sectors or passive income streams, they are in. We try to not be over 3% in one individual company but we do have some that are over that currently. We teach our boys to try to stay diversified though.
There are so many choices where they could invest their money and we told them that any time they have questions they can call us or any of our advisors. We hope once they get older, they will form a team of their own advisors.
We just want them to live Debt Free and to invest their money so it will make them lots of money. We cringe when we hear of people with lots of money sitting in their checking account or savings account hardly making any interest. We want their extra money working really hard for them to give them Financial Freedom someday.
With the recruiter we talked about how many stupid mistakes we made in the past with money and how we hope to help our kids possibly not make as many mistakes as we did. We can’t go back in a time machine and change our pasts we can only look forward and invest towards our goals.
Yes, for those who say Investing is risky and you can lose money. Driving in a car to Riding a Bike can be risky also. But with a lot of investments over the course of history is that the people that held on and didn’t jump off the rollercoaster of highs and downs did ok. Like the saying someone said “You only get hurt on a Roller Coaster ride if you jump off”. We have showed the boys the ups and downs of the stock market over the history of it. We also have showed them companies that didn’t make it either and are out of business today.
Oh, how I wish my parents taught me this stuff when I was living at home. I wish they would have drilled it in me and kept the subject alive in our house. But we never did, we mostly only talked about sports. I am not mad at my Parents for that, I had a good life and I love them a ton. I appreciate all they did for me and my sister. I just wished we would have talked about how to achieve Financial Freedom when I was young.
Where do you put your extra money? What do you teach your kids on where to put their extra money? Let me know your thoughts and what has worked for you, plus what hasn’t. I like to learn from everyone.
Here are some positive quotes I like;
“Get your Money to Work for You… As hard as You Work for it.” By Napoleon Hill
“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett
“There is no way to happiness; happiness is the Path.” By Buddha
“Change Your Thoughts – Change Your Life” by Wayne W. Dyer
Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.
Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.
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