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.
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