Online Financial Training Series Lesson 6 (Retirement Plan WEALTH BUCKET )

Now lets start our journey to retirement.

Two simple questions to start with. But two very important ones.

First of all, lets start with the obvious questions.

How much do I need to retire?

How long until I retire?

Then we can work out our plan.


Now it will get confusing and tricky later on, so lets keep it simple.

First of all we need to figure out how much you need to retire.

Then we will make a plan from then to see how long it will take you to retire on that income.

So how much do we need?

We will get to that soon but first thing is first. I need to explain and show you something.  
It will make you think. It will guide you on your way and make your Journey a lot clearer.

I was taught this simple plan a long time ago. It is called the wealth bucket.

Obviously a metaphorical wealth bucket.
So what is this wealth bucket?

Picture a Bucket. We will pouring water in the bucket and start filling it with water. Once it is full, we will have enough to retire. That simple.
We start Monday morning and pour water in for 8 hours, we are looking good and we will retire in no time.







BUT......

We wake up the next morning and the water has all leaked out the bottom . Why? Because it has holes in it.  So we have to do 8 hours the next day. The same thing happens. And again and again.

So the water going out the holes, is going at the same speed as the water going in to the bucket. So it  never fills up. And you fear you have to do this for ever.







Well this is the same as your budget.

Your wage or salary is the water going in, and the holes in the bucket your out going expenses.

So you are constantly filling up the bucket and it keeps emptying. We will do that every day for our entire lives
.
UNLESS. we have a plan to get out of it.. That's where I come in. Wink wink

So..... To retire we need two things.

One. To fill that bucket up.

Two. To keep it filled up long enough that the water does not leak out before we die.

So how do we go about that? A few ways.
What could we do?

First of all we need to fill that bucket up. Then we can work on keeping it filled up, when we cant fill it up our selves any more.

1. Work more. 

If we work an extra 2 hours a day (overtime) we are slowly adding more water than going out. So we are pouring more water in so eventually the bucket will get full.
WARNING!!!!!! Don't add extra holes because now you are getting more water you think can add a few luxuries.

2. PLUG THE HOLES.

So you have cable tv $100 a month. But you can get net flix for $10 a month,
(You could make that leak smaller). You cut out eating at fancy restaurants a little., (Another hole made smaller). You party a little to hard on weekends, You quit drinking. (A hole plugged),you upgrade your iphone every few months. You now buy every second one. (Another hole made smaller). Smoking costing you (plug that hole)
All these little changes could stop the flow of money pouring out your bucket. If you can slow the leak, or plug some holes. You can stop the flow pouring out your bucket so fast. You may now actually start building up the level in your bucket.

3. Hire someone to fill your bucket. 

If you start a business you can get other people to make your money for you and you take a cut so they pour in the bucket for you. Normally it is a smaller amount. If you can get a few people working for you they can fill up your bucket pretty quick.

4. Turn on a tap.

Simple yet effective. Imagine not having to shovel water into your bucket any more and just turn on a tap. Well that is what business and investing is.

At first the tap will just be dripping and not making much difference. But soon it will be like a waterfall and overflow your bucket till you make will have to get a bigger bucket. And
be earning more then you could ever spend.







THE WEALTH BUCKET

So lets start.
First Step is... YOUR BUDGET
If you haven't done your budget yet, do that now.
Yes do your Budget. We need to Find out What is going in your Bucket, and what is going out.

Second Step is Plug your holes. Go through and see where you can cut expenses

So why not subscribe or join me next blog? And I have a continuation of this bucket. And what to do next. Trust me It will set you up for life.

THE VEGAS NIGHTMARE 

Wall Street math genious 

New system 

Learn to beat the house just like the mit students did in BLACKJACK 21!