9 Financial Goals You Must Hit by 50 years?Building Wealth you're trying to build? getting closer to your goal so in this article

All right so  you're trying to

figure this thing out  You're

Building Wealth you're trying to build

wealth you're earning money you're

putting money away You're investing

you're trying to do all the things

you're digesting the content and running

the miles the question is how do you

know if you're on the right path how do

you know if you're doing the right

things and you're actually getting

closer to your goal so in this article

I'm going to break it down for you I'm

going to I'm going to give you nine

financial goals that I want you to try

and strive for to hit by the time you're

age 50 now whether you're 20 years old

30 years old 40 years old 50 years old

you use these as Milestones guide posts

and a checklist to make it happen and

I'm going to break it all down for you

in this article of the affluent

entrepreneur show so you can take it put

it in your life and make sure that

you're on the right path to Financial

Freedom all right I'll see you in the article

all right so you're you're doing the

investing you're listening to the

content you're reading the books you're

putting money away You're participating

your 401k you're getting the company

match you're putting stuff in an IRA

you're running things from a a a budget

you're doing all the right things but

how do you know that you're on the right

path how do you know that you're on

target to hit the numbers that you need

to

hit to make it happen so here's what I

want to do in this article I'm going to

break down nine things nine goals

financial goals that I want you to hit

by the time you're age 50 and like I

said in the intro doesn't matter whether

you're 20 listening to this 30 40 50 or

even 60 use these as Milestones guide

posts and a checklist and if you're

you're close to it great if you're not

close to it we got some work to do and

we'll help you there too so let's let's

start off with the very first thing all

right the first the first Milestone the

first guide post that I want you to do

and I'm going to jump to my iPad here is

liquidity and here's what I mean by

liquidity by the time you're age 50 I

want to make sure that you have some

cash available all right I want to make

sure that you have liquidity in in cash

now as we're recording this high yield

savings accounts are are performing

pretty well five five and a half% so

we're going to put cash away but here's

the reason for it we want to make sure

that we have enough cash to take care of

ourselves to for any kind of sustained

downturn sustained issue an emergency uh

a big house repair a big big event

something that is not planned and and

really start to to build it out so you

have the opportunity to navigate through

it with peace of mind it's the very

reason that in my book building building

building your money machine part as part

of the wealth priority ladder we call

this a peace of mind fund some people

will call it an emergency fund but the

important thing is that when you're

getting up to the age of 50 and Beyond

is that we start to make sure that your

peace of mind is assured because you

don't have as long a Runway to recover

if there's a downturn a problem or or a

situation and so it's important for us

to make sure that you have liquidity in

place so that's the first thing that I

want you to do and you know

in our

world I say that you know there's so

many people that say three to six months

on on on their emergency fund I think

it's too too small too short I think we

need to be looking at N9 to 18 months if

you want to average it call it 12 months

okay and as you get up in years you're

probably going to want to extend it

closer to the 18 months because you're

you may not be earning as much you may

be not working as hard you may not be

doing the things and you want to slow

some things down and we need to have the

ability to sustain ourselves when you

first look at this you might say well

that's a lot of cash to put aside I get

it we may not get there right away

you'll start with three months you'll

get to 6 months you'll get to 9 months

you'll get to a year over time it's part

of the wealth priority ladder that we

are building the recipe to give you

Safety First growth second I need to

keep you from going in the ditch I need

to keep you from digg in a hole I need

to keep you at Ground Zero and above so

we're not having to to fix a disaster

and at age 50 liquidity matters so I

want us to start looking to to to do

that now if you get if you get your

funds in place at age 40 or age 30 great

however here's the thing let's say let's

say that you're making uh it's costing

you 5,00

a month $5,000 a month to live and

you're 30 years old okay it's costing

you $5,000 a month 12 months of that is

$60,000 okay so you want to have

$60,000 in a piece of Mind fund at that

point in time now you keep working you

keep working you keep working now you

find yourself at 35 years old and at 35

years old you're now it's now costing

you um $10,000 a month but you haven't

changed the60 ,000 see if you your pce

of Mind fund has to grow with your your

lifestyle expenses so now if it's

costing you $10,000 a month to live you

need $120,000 in that fund so be be

aware of if I hit the goal that I

continue to adjust that number as my

expense structure goes up or down to

make sure that I have sufficient

liquidity in place all right that leads

me to number two number two oh this is

debt a the big four-letter word debt

here's the thing I am not one of those

folks that says all debt is the devil

okay I I don't believe that all debts

the devil however I do believe that all

debt has two personality traits two

characteristics that are the same see I

believe that there's destructive debt

and there's productive debt destructive

debt is the debt that you are using to

pay for your current lifestyle it is for

consumables it is for momentary

Pleasures it is for that stuff is for

the present moment that you can't pay

for in cash which tells me that it's

probably something you can't afford it

is not productive debt productive debt

is the stuff that's going to increase

your cash flow in the future and your

wealth in the future it could be a

mortgage on a rental property it could

be anything like that but it is not debt

to buy a big screen TV it is not debt to

to buy a uh clothes or luxury items and

so we need to be mindful of those two

things what I do want to do is by age 50

for sure I do not want to have any

destructive debt nothing for consumables

I am not financing our current lifestyle

okay nothing at all now remember I said

two personality traits two character

istics all debt whether it's productive

or destructive will cost it's called

interest you're going to pay for the

borrowing for the use of the money so

all debt costs and then all debt

stresses it and like it or not it

stresses you financially because the

burden on your finances it stresses you

psychologically because of the burden on

you whether it's good debt bad debt or

whether it's productive debt or

destructive debt doesn't matter they

both stress and they both cost so we

need to be mindful of it now at the same

time I do want you to start looking at

how do I get debt free at 50 years old

you can see retirement on the horizon

it's within ey shot and what we want to

do is I want you to be debt free by the

time you get there so you don't have the

stress so you don't have the burden so

you don't have those issues because

if you go into a situation where you

decide hey I'm done working but you have

this debt that you got to pay whether

it's a mortgage whether it's car debt

whether it's something else it's going

to burden your cash flow and your money

machine inordinately and stress you

going into years where you actually may

not be able to earn as much not want to

earn as much not want to work as much

and so I want to give you the gift of

that freedom and the way we do that is

we start to put ourselves on a on a debt

payment plan to to get it dialed in now

I'm going to be fully transparent I am

62 going to be 63 this year and I am not

debt free I have a mortgage on this

house

so and there's a reason for

it now can I be debt free absolutely I

can be debt free but here's what I'm

doing and if you have discipline you you

want to do it you can do it the there is

a difference between debt free and the

capacity to be debt free the mortgage on

this house is at

2.75% y'all you ain't going to see two

2.75% anytime soon so instead of me

paying the mortgage off what I've chosen

to do is take the amount to pay off the

mortgage and put it in a high yield

savings account I'm earning 5 a. half%

I'm paying 275 playing the Arbitrage so

at any given time if we choose to we

write a check we're debt free and we're

done so uh just to be fully transparent

I want you to know that I'm not debt

free but I have the capacity to be de de

debt free at any point in time so that's

what I want for you so you can move

forward and say I don't have that burden

so that's number two number three you

got to know your target where are you

going because too often we don't know

where we're going we don't know where

where we're trying to get to if we don't

know where our Finish Line is we're

going to keep running the race and maybe

we burn out we break down we stress

ourselves out we affect our

relationships we affect our health when

the Finish Line was behind us so it's

really important for us to look at it

and say what kind of Life do I want this

is why I do this in my book my trainings

when I work on my Elite 101 clients in

my Master's uh program um we start with

your

lifestyle why are we build why are we

Building Wealth in the first place we're

Building Wealth to create a lifestyle to

fund a life to fund an impact to fund to

fund the richness of our life so why not

start there with the end in mind as

Stephen cvy said and say what is the

life that I really want and when I

understand the life that I really want

then put a price tag on it so it starts

with the vision you put the price tag on

it you create the strategy to make it

happen and then you based on the plan to

make it happen so the the vision will

Define the plan then you know what your

target is now the target's going to

change it's going to change as you go

through life stages uh life in

situations it's just going to change and

that's okay but at least you're going in

the right direction and as you get

closer and closer to that time where you

maybe are going to retire or or do

something else you become more and more

precise as as I've gotten closer and

closer to these these years of my life

we've gotten more and more precise we've

refined it we've moved the target we've

adjusted the target when my grandkids

were born we adjusted the Target when I

got married I adjusted the target all

those things happen and but we need to

set a trajectory to start and then

continue to adjust as we go so that's

know your Target and number four I kind

of mentioned this and that is a

definitive plan okay and I'm going to do

some calculations here for you just so

you know is that the we got to have a

plan having the vision having a vision

board and all that stuff well it's great

I got it on the on the wall I look at it

every day I you know vision boards don't

make you make you rich vision boards

Don't Change Your Life vision boards

don't do any of that

unless the vision board is translated to

a plan which is translated to a strategy

which is translated to tactics which is

translated to actions that's how vision

boards will change your life that's how

your vision changes your life so here's

what I want to want to do is is to for

you to understand where should you be

based on this plan and I'm going to go

through a formula this is not my formula

this is a formula from a book a classic

text on Personal Finance The Millionaire

Next Door and he talks about this

formula of how do you calculate where

you should be net worth wise based upon

your age so you start to understand

whether you're in the ballpark or not

and he calls it this average accumulator

of wealth formula so I'm going to

calculate it for you and I'm going to

show you um how it how it's how it's

done so the average accumulator of

wealth formula is is your age times your

income divided by 10 okay so let's just

do an example here let's let's just

assume that you're you're 45 years old

okay you're making

$100,000 a year so 45 * 100,000 is 4.5

million divided by 10 that puts you at

at 45 years old you should be at

$450,000 in net worth so that makes you

what he calls an average accumulator of

wealth now he also talks about this this

idea of a prodigious accumulator wealth

and what he does is he says just take

that number and multiply it by two so to

be uh an overachiever of wealth then it

would be $900,000 so this gives you an

idea of hey am I on track am I on track

with the things that I'm doing and and

if I am great if I am not then I I've

got some tweaks to do I've got some

things I should be taken care of and and

work from there now this formula has

been criticized look any generic formula

has its flaws but it's a starting point

now one of the criticisms is that if

you're younger if you are under 40 it

the formula doesn't really work as well

for you and so some dear friends of mine

um Brian Preston and Bo Hansen from the

money guy show they modified the formula

for those of you that are under 40 so if

you're under 40 this is the modified

formula from them and that is you're

going to take your age times your income

okay divided by 10 but you're going to

add to it the number of years to 40 so

let's just Let's do an example here

let's assume you're 30 35 years old same

income

$100,000 35 years old at

$100,000 is $3.5 million divided by 10

okay and since you're 35 you have 5

years to 40 plus five so divided by 15

that gives you

$233,000 roughly so bottom line is is to

be an average accumulator of wealth at

age 35 based on the modified formula

it's about A4 million

$233,000 if I want to be a presigious

accumulator of wealth then it's going to

be twice that 466,000

so again these

are just ballparks guide posts for you

to sit back and say hey am I am I on the

journey right and if you're on the

journey right or not then we get a

chance to to ma modify we get a chance

to make new decisions the reason we put

these things in place is to inform us so

we can start to guide ourselves more

readily all right so that leads me to

number five is protections now we should

be thinking about this as we go anyways

but really especially now we need to

make sure that we have our trusts our

wills and insurances in place if we

haven't got them done already and we

should listen like it or not we live in

a society where there's a lot of

lawsuits we're live in a society where

there's a lot of dysfunction in family

we live in a society where there's a lot

of taxes so we need to protect ourselves

from lawsuits U family dysfunction taxes

all those things and the way you do it

is making sure that you have your trusts

and wills in place and the proper

insurances I'll talk a little bit about

the insurances in a moment but it is

important for us to make sure that

that it is dialed in so what kinds of

insurances should you have and I'm just

going to Ratt them off look I'm not here

to sell insurance the bottom line is

though we need the protections when we

need the protections so so one is we

might need life insurance I only use

term insurance I do not wrap investments

in any insurance product it is

inefficient it is costly is expensive

and the only one that makes money is the

one selling it to you and the insurance

company do not do it okay no matter how

they sales pitch is how good it is okay

and the reason we create we get life

insurance is not to make our errors Rich

it is to replace the income that they

might be missing if you were gone

and and I want to be really clear if you

are in a household that is more of a

traditional household where one spouse

is working and one person is is staying

home with the kids let me tell you

something the value of the person that's

staying home with the kids is is the

same or more than yours so do not

discount the fact that saying the the

stayathome person isn't making money

therefore I don't need life insurance

because you know what the fact that

they're home with the kids is allowing

you to earn the money and if they were

gone what would happen so the purpose of

life insurance is to replace that income

stream or that functionality to allow

you to continue to live allow them to

continue to live that way it's not to

make them wealthy now at some point at

some point if your money machine is big

enough when it's big enough you won't

really need it you're self-insured okay

but it is important at at the at the

very beginning then we have uh

disability

insurance this is important for anyone

that's the income earner because here's

the deal there is a higher likelihood

that you get disabled then you die and

if you are the the the main income

earner and you cannot work work how do

we pay the bills so having some sort of

long-term disability polic important I

have had one for decades I have used it

multiple times and they've literally

paid well into the six figures each time

to make sure that I got myself healthy

again and it allowed me to pay the bills

without having to worry about it so you

want to look at at at that uh other

policies things like umbrella policies

to to cover liability if you're a

professional uh an Eno

policy and this is not all inclusive

obviously Auto Health all of these

things are there to protect you in a way

that that you aren't going to drain what

you're building to make it happen so you

want to look at these types of

insurances to to protect what you're

building and not allow it to go away the

many bankruptcies the uh the high

majority of bankruptcies is because

because they couldn't pay medical bills

having the right health insurance and

let's not

get on the topic of the health insurance

and the health industry and all that

stuff but bottom line is we need it all

right number six make sure everyone is

on the same page oh my gosh so as a CPA

and someone who's been an expert witness

working with wealthy families working

with people that are trying to build

wealth trust me I have seen my share of

family dysfunction and when money gets

in the game all of a

sudden

loyalty is replaced with

greed and it is horrible to see some of

these things now one of the things that

I think is important is that your

wishes are communicated effectively

while you're there while you're alive

not because you don't want a situation

where they're turning around and saying

well that's what he or she told me but

that's just your saying it needs to be

properly done this is why trust and

wills are so you know two hours after I

was diagnosed with cancer I was in the

attorney's

office going through the trust to make

sure that it was all dialed in

everything was taken care of and

Stephanie was like I can't believe

you're going there to do this now but I

had

to not not for any other reason other

than from my own peace of mind and then

sit down with Stephanie say look you're

good you're taken care of here's how

this works here's what you need to do

here's what Jeremy needs to do here's

how the grandkids are taking here's all

of this stuff and you're

good

now she and the whole family understood

my wishes understood what we're trying

to do understood what to do and that was

no question get them on the same page

have the

conversations so they don't tear things

apart and destroy the family in the

process because they they were confused

as to what it is you wanted okay that

leads me to number seven and that is the

right team who is in your court who do

you have that is helping you execute the

strategy in the plan you're going to

need to have at some point especially

when you start to build build enough

wealth an attorney a financial adviser

or CPA a tax strategist at at at a

minimum okay so you can have real

conversations but it also allows you to

know that you can go to someone just

like I did after after getting the

diagnosis call my attorney go to Robin's

office have a conversation with him okay

and my wealth team everyone knows

everything now God forbid something

happens to me see when my my dad passed

away and and when Stephanie's dad passed

away both our mothers both our mothers

were freaked out because they didn't

know if they could stay in their homes

they didn't know if they could afford to

live there they had no idea what was was

there they didn't even know where to go

we had to piece it together and stay I

stayed back back with with her mom for

for an extra week or so just to try and

piece it together and make sure she was

okay and Lord knows when you're mourning

the loss of your loved one the last

thing you want to do is have to deal

with the question of your

existence so having the right team in

place is really important God forbid

something happens to me Stephanie knows

she makes one phone

call two phone calls she's done

everything's taken care of because we

have the Protections in place we have

everyone on the same page and we have

the right team in place that leads me to

number eight number eight is it is a

time where you can instill values and

actually I think you should be doing it

much earlier but here's what what I know

I raised Jeremy uh from five and a half

six years old as a single full-time Dad

it was really important for me to

instill a set of values in him and

especially when it came to around money

generosity uh uh charity uh and and how

he shows up in the world I I to this day

I look at him as a as a man as a husband

and as a dad and I go he's my proudest

success he's my proudest success and and

so we have the opportunity to instill

values by putting provisions and trusts

and wills to have the conversations to

do the things that are important because

our Legacy isn't the assets we leave

behind our

Legacy is what we leave in the people

that we

love based on how we lived each moment

of our life and so I want you to to look

at and say what values am I instilling

in the people I

love what values am I putting out there

and that leads me to number nine and

number nine this is a pet peeve of mine

um and this is skill sets before assets

oh man so here's what I mean by this

there is no one in my family that's ever

going to be a silver spoon okay Silver

Spoon babies aren't going to exist and

this is the problem that I see in

society and what what what I have

watched in in my work over the decades

with families that that I didn't get a

hold of early enough the bottom line is

this is

that they need to understand how to

handle the money how to navigate the

machine if you're building a money

machine they need to prove and earn the

right to have

it they're not just getting it because

of blood Jeremy will not get anything if

he didn't prove that he had the right

values the right skills and the right

abilities to to take care of it because

this what you're building isn't just for

you or your spouse it's for the

generations you become a financial

inflection point on everyone that comes

after you if you do it right

but the only way that happens is that

you transfer the skill sets before they

ever get the assets and they have to

earn the right to do it so these are the

nine things the nine financial goals

Milestones that I think you all should

be striving for at 50 if you're not

there and you're close to 50 or you're

after 50 use this as a checklist you now

know what the priorities are follow the

processes follow the recipe follow the

wealth prty letter follow the stuff in

my book building your money machine

it'll get you there get off get out out

of the stands get off the sidelines get

on the field let's run the game together

at least this I hope gave you some

things to evaluate and say am I on the

right path am I on the right trajectory

and do I need to change some things all

right I hope you found this of value and

I look forward to having a conversation

with you or hearing from you down the

road if you have a chance and you have

any questions reach out to to me let me

know all right I'm on I'm on that

Crusade I want to light the path to

Financial Freedom for a million families

and I want you on that journey I truly

believe that Financial Freedom is our

birth right and your birth right let's

go claim it all right till I see you on

the road uh one of my speaking

engagements or in another article always

always strive to live a life.