The path to becoming financial independent has to be lined with goals, and as you check each one off the list you become that much closer to being financially free so to speak.
New York, NY (PRWEB) July 03, 2013
FinanceSpectrum.com financial advice column today released their observations regarding a new way to look at retirement, an idea pitched by a recent Forbes article. FinanceSpectrum.com supports the act of striving for financial independence instead of coming up with a “magic number” for retirement, and issued their own recommendations to consumers to make financial freedom a reality.
In a July 1st Forbes article by Richard Eisenberg, he introduced the idea of planning for one’s “financial independence day” as opposed to shooting for “the number” in one’s savings account that will determine when they can comfortably retire. Eisenberg reported that the definition of financial independence or financial freedom varies from person to person. Globe Life Insurance reported that since 1943 per-person consumer debt went from $42 to over $8,000 today. The life insurance company also brought to light that the average student loan debt for the class of 2011 was $26,600. For some, financial freedom could mean paying off their or their child’s student loan debt while for others it could be getting out of credit card debt. Eisenberg stated that according to a recent Capital One 360 survey, 44% of U.S. adults felt that financial freedom means to have no debt while 26% believed that it means having enough money saved in case of emergencies, and another 10% felt that it is the ability for one to retire early.
FinanceSpectrum.com believes that striving to be financially independent could be a better route to go than simply endeavoring towards having one specific monetary number saved up in a bank account, reasoning that the first method is more realistic. FinanceSpectrum.com pointed out that somebody could have a certain amount saved up for retirement, but if they are still paying off a mortgage, a car loan, and student loan debt when their retirement rolls around, that ‘magic’ number isn’t going to go as far as it would if those things were paid off.
FinanceSpectrum.com encouraged readers to set realistic goals for themselves that will serve as benchmarks on their way to financial independence. FinanceSpectrum.com is quoted as saying, “The path to becoming financial independent has to be lined with goals, and as you check each one off the list you become that much closer to being financially free so to speak. And each road is different for each person. You must look at your own finances and ask yourself, ‘Okay, what do I need to accomplish to become financially independent?’ It could be that your first step is to pay down your credit card debt. Then you move on to paying off your car loan, then student loan debt, then your mortgage, all the while contributing to a nest egg, IRA, or 401(k). I believe that being completely debt-free could be one of the most wonderfully freeing feelings, and it’s exciting to work hard to reach that day.”
FinanceSpectrum.com is a financial advice online magazine designed for everyday American consumers to glean advice, information, news, and guidance on all things related to money management and personal finance. FinanceSpectrum.com enjoys providing recommendations and advice to others in order to help them achieve their financial and personal aspirations.