Is The Market Going To Crash?

As you may know, the Dow Jones dropped more than 1,000 points last week.

This had Wall Street running like headless chickens.

Should we panic? Are we close to the next big crash?

However, what does that mean? Why should we care if we don't invest in the market?

Moreover, if we do, with more reasons we should continue reading this.

Well, to clarify, this is the 2nd time this year that the market dropped over 1000 points. It happened back in February.

The reality is that when the market goes up in a straight line, there has to be a time of correction.

The market goes up steadily and slowly, but the corrections can happen erratically and rapidly.

This is when financial education becomes essential.

Because we want to make money and grow our money, but for sure we do NOT want to lose it.

The problem is that there is so much information out there that we get all confused about what is right and what it is not.

And at the same time, there is such a lack of information

However, there is...

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Are you house rich but cash poor?

Do you know anyone that is house rich and cash poor?

Most people are just paying their mortgage and that’s it.  They are not contributing to their retirement plan, they have no savings, no emergency fund. They cannot go on vacation unless they get into debt.

Why?  Because they bought a home that is too expensive for their personal situation. In other words, they bought a house that the couldn’t afford.

Here are some of the reasons people are trying to pay off their mortgage.

You should not be paying off your mortgage as fast as possible, making extra payments, or getting in shorter terms, or be participating in a bi-weekly plan. 

Why? Because the goal in life should be to create wealth. 

Why carry the long-term mortgage?  The only answer is liquidity and wealth. 

Paying off that debt will not necessarily give you wealth.  At this moment, your home is increasing in value on its own.

This is why the longer the term, the lower the payment...

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7 Steps To Financial Freedom

Since we are little we have been imposed to get an education, then get a job, fill our lives with depreciating things and then retire and die. 

However, at some point, we realized that is not financial freedom.  That is not what we had in mind when it comes to time freedom either.

What is Financial Freedom?

Everybody has their own definition of what financial freedom is for them.  But in the end, it comes down to the same thing.  We want the opportunity to keep the lifestyle we desire without worrying about how and where the money is coming from. 

How can I reach Financial Freedom?

Today, I am going to show you 7 steps that you can take immediately, that will help you to achieve financial freedom.  No one said that it is easy, but it is possible.  

Here are the 7 Steps To Financial Freedom: 

  1. Live like you are broke.  What this means is to stop living above your means.  If you live above your means, most likely you will be...
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What Is The Purpose Of A Budget?

If you are wondering why do you need to create a budget or spending plan,  I am going to tell you on this blog. 

No matter if you like it or hate it, having a budget can help you improve your finances immediately.

The reason to have a budget or a spending plan is so you can spend intentionally on the things that are most important to you. This is the first step to financial freedom even though it sounds like it is not.  Why?  

  • First, because you will eliminate the guilt on how your money it is spent. 
  • Second, because if you create a budget and decide where your money is gonna go, you will feel in control and empowered.  
  • Third, because you know that you will have money every time to either put aside or to be able to achieve your bigger goals that are not immediate.  
  • Fourth, because it will eliminate the guessing game on where did your money go at the end of the month. 

You are planning out everything in...

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401k, The Poor Men's Retirement Plan

 

Financial literacy is very rare in the US.  Actually, only 5 states enforce some sort of financial class in their high schools.  I am talking about teaching how to pay bills, how to build good credit, how to avoid debt like student loans. 

Among those states are Utah, that scored the highest for having a required semester class on personal finance.  The other ones are Alabama, Missouri, Tennesse and Virginia.  It is sad to say that states like California, Massachusets, and Pensylvania don't even have an education program on how to teach people about money. 

So what does the 99% of the population do when it comes to retirement plans and financial education?  

Most people trust their employer's retirement plans.  Not because they know that it is the best way, but mostly because they don't know any other option.  The majority of people in the United States signed up for their employer 401k retirement plan.  

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