This is the third installment of a 5-part series examining the massive impact compound interest can have on your journey to financial freedom.
In part two of this series we reviewed how the power of compounding accelerates over time and can serve as your rocket to riches, making it possible to break the sound millionaire barrier by simply saving and investing $46.00/week over a period of 50 years.
In today’s article we’ll be detailing how compound interest can actually work AGAINST you by going undercover and acting as a double agent to thwart your financial goals.
You may view the concept of compound interest as simply a boring financial term that you (fortunately) only have to deal with a few times in your life, such as while applying for a credit card or slogging through mortgage origination paperwork.
But if you’re reading this article, it’s probably safe to assume that you’re interested in either ending the stranglehold your finances have you in, increasing your bottom line, or becoming independent of a paycheck. Maybe even all three.
If that’s the case, we need to revisit this concept of compound interest. It is one of the most powerful forces in the universe, and it has the potential to change your life. Continue Reading
Financial Intentionality: The 9th Wonder Of The World
We also learned that nearly half of all Americans already meet this criteria and that the average adult is only $1,301/year ($.63/hour at 40 hours/wk, for those counting) from doing the same. Lastly, we reviewed some troublesome statistics regarding the money situation of everyday Americans:
Up to 78% report living paycheck-to-paycheck
As many as 72% identify as being stressed by money
57% have less than $1,000 in savings
39% have no savings at all
The obvious question remains: why this stark discrepancy between high average income and extremely low levels of personal prosperity? Continue Reading
The Average American Income Is Only $1,301 From World’s Top 1%
Does your income rank in the top 1% of the entire world? Before you roll off your couch in a fit of cynical laughter, you should know that the answer to that question might just surprise you.
A recent study found that the level of annual income required for someone to be within the top 1% of earners in the world is a mere $32,400. This translates to an hourly wage of just $15.58, assuming a standard 40 hour workweek and full-time employment.
Yes, that’s right – make $15.58/hour or more on a full-time basis and you’re part of the global 1%, based on income.
Hello, reader! Welcome to The Financial Freedom Project, a blog dedicated to making financial freedom, financial independence, and early retirement attainable for everyday people with everyday incomes.
Driven to pursue financial freedom, but don’t have a six-figure income and don’t want to live like a hermit? That’s alright, I didn’t either! The good news is that there is another way.
This is Mr. Financial Freedom Project (Mr. FFP, for short), founder and author of this site. Below you’ll find a synopsis of my story, the blog, and what you can expect to find here moving forward. Continue Reading