HOW WEALTHY ARE YOU? ARE YOU A MILLIONAIRE NEXT DOOR?FORMULA TO CALCULATE AND KNOW HOW WEALTHY YOU ARE. By Dr Franca 11th January 2017
Although 95 out of every 100 people are not financially independent when they retire, aiming to retire financially secure at age of 65 is not living in cockoo land. The earlier in life you start saving and investing, the sooner and wealthier you will retire. The big question, however is how much saving is enough to retire on and be protected by ever increasing inflation? If you want to retire when you are 55 years old, you should have accumulated at least 23 times your salary.
Retiring at 60 requires you to have accumulated 20 times your annual income, and packing in the rat race at 65 means you should have accumulated 18 times your annual salary by then. To retire at 65, you should already have saved seven times your income by the time you are 40 years old and nine times your income by the age of 45, 13 times your income by the age of 55 and 15 times your income by the age of 60.
Test how well you are doing. Feel happy and work harder, use this formula as a test.
£250,000 or $350,000 or 300,000 Euro in cash and assets is normally regarded as wealthy in the developed countries. This would get you the comforts of life, a nice house, nice cars and pay for children’s education etc.
In Nigeria, 50 million naira, in cash and assets could be regarded as comfortable. However, one needs far less than this amount to be happy in life.
You could consider yourself wealthy if your total cash plus asset is greater or equal to 100 million naira.
Wealth = Cash + Asset
Wealth = 100 million naira
Plan well for your retirement: Answer these questions?
1. Do you have an investment income outside your salary?
2. Is your investment income more than twice your annual salary?
3. Do you have income from other business set-ups? (shop, café, etc.)
4. Do you have a pension? Yes No
5. Does your employer pay a contribution to your pension?
6. Do you have any other insurance or life assurance cover?
7. Have you talked to your family and friends about your retirement?
8. Will your children be financially independent on you when you’re 60?
9. Do you have a partner who is working and willing to support you in part during retirement?
10. Will you have paid off all your debts (including mortgage) by 60?
11. Do you have a hobby and keen interest in a regular exercise?
Interpreting your scores
The higher your number of Yes scores, the better. If you have answered Yes to all the questions, it clearly indicates that you are ready and on the way to retire rich and wealthy. However, there are no guarantees, you may consider consulting a professional financial and career adviser to review your strategy.
LIVE A HIGH VOLTAGE LIFE
SET UP YOUR PIPELINES. ATTAIN FINANCIAL FREEDOM. By Dr. Franca 27th April 2017.
Build your financial pipeline to achieve an ongoing residual income. many people tend to believe that the way to financial security and happiness is to do your own thing your own way or to develop a new product no one else has.
Know the difference between Financial Fact and Financial Opinion. It is a matter of common sense, though sometimes in life, common sense is uncommon. Facts are based on numbers. Your financial survival depends upon facts, not some friends or adviser’s wordy opinions. However, both fact and opinion are important but are completely different financially.
Most people struggle financially because they spend an awful lot of time of their life using opinions rather than facts when making financial decision.
The following are opinions
Your house is an asset.
The price of real estate always go up
Blue chip stocks and shares are the best investment.
You have to be dishonest to be rich.
Joe go on and marry Jane she will make a good house wife.
There is enough money in Nigeria for everyone to be rich
People who make mistakes are stupid.
He studied Accountancy, he must make a good bank manager
Gold or Diamond is only an asset, by definition, if you buy it for less than you sell it for. In reality, the only thing that is an asset or liability is you. It is you that can make a diamond an asset and only you can make it a liability. It is OK to use an opinion when making decision so long as you know the difference. To be successful financially, you must know the difference between fact and opinion. If you cannot verify something as a fact, then it is an opinion. Some research scientist defined financial insanity as when opinions are used as facts. When it comes to making money, most people are either lazy or searching for shortcut. And there are still others who are so afraid of making mistakes that all they do is due diligence and they do nothing.
2. Playing the game of Monopoly. This is not a joke. The formula for getting rich in Monopoly is simple, and it works in real life as well as in the game.
3. Think and Grow Rich
Ask yourself one important question; why think and grow rich and not work hard and get wealthy. The truth is that people who work the hardest do not wind up the richest. Job or financial security is completely different from financial freedom. The process of going from financial security to financial freedom is a matter of changing your thinking.
If you want to attain financial freedom, you need to think, think and think. A person who has a loser mentality will always lose no matter what stock, share, real estate or gold they buy.
4. Mistakes and Risks are essential:
Mistakes are essential characteristics of human beings. That is why people who take risks, make mistakes and recover often do better than people who learned not to make mistakes because they were afraid of risks. Mistake free doers are rich, usually people who are emotionally afraid of making mistakes. Instead, to be financial free, we need to learn how to make mistakes and manage risks. In a nutshell, risk leads to mistakes, and mistakes lead to wisdom and knowledge. Failure is part of the process of success.
5. Attitude determines our altitude
Our attitude determines our altitude in life. It has been quoted too often in almost every self-development journal and by different authors in marriage and business relationship. It is unequivocally true. Attitude is governed by emotions and emotions control our thinking, feelings, beliefs and altitude
As a matter of policy never say any of the following because what a person says and thinks becomes real.
I can’t afford it
I don’t do that
What if I fail
That idea will never
I am never lucky
I will never be rich
I am not good in anything
I am poor in managing money
My own things always go wrong.
6. Make disappointment your appointment.
Just as inside every problem lies an opportunity, so is inside every disappointment lies a priceless gem of wisdom and knowledge. Make appointment to explore the hidden opportunity through wisdom and knowledge therein.
7. Dream Big.
The biggest adventure you can ever take is to live the life of your dreams. In a nutshell Dr Franca says that to be financially free you have to think, think, think. Change your thinking to possibility thinking and know that with God all things are possible.
Remember that only those who can risk going too far can really find out how far they can go. We cannot tell you what business to go into at this stage.
All we are saying is for you to change your outlook and you will for the first time notice the opportunities that abound.
Risk must be taken, because the greatest hazard in life is to risk nothing. The person who risks nothing does nothing, has nothing and is nothing.
Copyright 2017 © Ngozi Franca Okoye PhD.
Pinnacs Media and Productions
ALL RIGHTS RESERVED.
Dr. Franca . Motivational Speaker and Life Coach. Author of Unique Me, Unique You. A Guide to Build Your Self Esteem and Improve Your Self Confidence in One Week.