Introduction
So, you’re over 40, and suddenly the thought of financial freedom feels as elusive as a great hair day after a bad night’s sleep—let’s chat about how to actually get there!
Do you see that? The elephant in the room? Retirement savings. We started working SO. MANY. YEARS. AGO.
“Start a 401K,” they said, so we did. Some of us have faired better than others, hopefully yours has grown over the years, so that you do have a nest egg. But what if you don’t? What if that nest egg isn’t nearly big enough to fund the retirement life you’ve dreamed of?
As we enter our fabulous forties and beyond, the dream of financial freedom isn’t just about numbers—it’s about the freedom to enjoy life, pursue passions, and embrace opportunities without the weight of financial stress.
Here’s a little tough love (gulp!)
According to a 2022 report from the Employee Benefit Research Institute (EBRI), nearly 30% of workers aged 55 and older have less than $100,000 saved for retirement.
It’s no wonder many of us feel that familiar pinch of anxiety as we consider our future, and how about this little gem:
The American Psychological Association reports that money is a significant source of stress for over 60% of adults.
If you’re thinking to yourself, “Wow, thanks for this, Captain Obvious,” I hear you.
Now let’s talk about something more positive, ‘cuz that’s how I roll.
What is Financial Freedom ?
Defining Financial Freedom
There are lots of people who talk about it, even promise to show how to achieve it, (I am one of those of people, BTW), but what does it even mean? Is it a specific number or a magic formula? How do you know when you have created financial freedom?
For me, I guess it is a combination of those things. Obviously you have to factor in your basic living expenses, how much you will need to keep a roof over your head, food in the fridge, and the lights on. That is number one, of course. Some might say that if they have enough to cover those expenses for the rest of their life, they are good.
I would argue that financial freedom is so much more than that. I strive to get to a financial level that allows me the ability to pursue passions, travel, and enjoy life without constant financial stress. When I first crunched the numbers on my retirement savings, I realized that the life I envisioned was a bit further away than I’d hoped. That was my wake-up call to redefine what financial freedom truly meant for me.
When reality hit me in the face:
A few years ago we were meeting with our financial advisor for our yearly review. Truth be told, this is not my favorite event of the year, it feels more like heading to the doctor for an annual exam, you know, half naked, exposed on a table preparing to hear the worst.
At this particular meeting he reviewed the goals we had set back when we started working with him. My dream has always been to have a second home, I envisioned it being a fabulous lake house where we would spend lazy summers creating memories with our kids and grandkids. We had come close to buying that property (that’s a story for another time), but we hadn’t actually accomplished it yet as we were in this meeting.
Our advisor looked right at us and asked if he should take my lake house out of our planning strategy since we didn’t yet have it, and retirement was getting closer.
I can vividly remember what that felt like…I felt like he was dismissing my dreams simply because the numbers weren’t easily lining up on the plan vs reality graph.
I sat there stunned.
We were still in our late forties at the time, and what I heard him say was that since we hadn’t achieved our dream yet, perhaps we should just give up on it. I was devastated. It took everything in me, not to start crying right there.
At that moment I knew that although we were doing very well financially, we were not close to being financially free.
I Needed a Plan
Importance of Side Hustles:
I had been working for several years at that point to develop other streams of passive income. I had some success, and loved working in that realm of our financial portfolio. I had grown a lucrative home business, had been dabbling in real estate investing, and of course like every other GenXer at the time, I was doing some day trading from home.
After that meeting, I knew I had to put this into overdrive. I didn’t want to play around any longer. It was time for me to stop looking at these ventures as a hobby and implement a more concrete strategy. I realized that even with these income streams coming in, I could actually add a few more and start using them as seed money for bigger ventures. Have you ever heard that the most financially successful people have at least 7 streams of income? That became my goal, and it still is.
Here is what I have found:
- Some of those streams are larger than others.
- Some of them ebb and flow.
- Some of them are very reliable.
- They are all valuable.
I don’t discount any of them, and am always looking for new ones that make sense for us. I love the concept of what I call “money multiplying.” I use what I make in one arena to fund other ventures that allow my money to make more money.
Are you ready to get started?
Have you ever thought about what it would feel like to earn extra cash while doing something you love? Whether it’s freelance consulting or turning a hobby into a thriving business, the possibilities are endless. There are so many ways you could get this going for yourself. Here are few ideas to get you thinking: online tutoring, affiliate marketing, network marketing, crafting, or starting an online store.
Where to Multiply Your Money
That’s the million dollar question, right? I am always eager to talk about this, but I am not a financial planner. I have found several projects that I enjoy and have proven lucrative. I encourage you to explore lots of options. If you would like to talk further about it, please send me a comment and we can connect.
Engaging Professionals: If you are new to this or nervous, I highly encourage you to consider working with financial professionals to create a more comprehensive financial plan that incorporates both traditional and alternative income strategies.
Conclusion
Bottom Line: It is not too late to create a plan that will help you achieve the financial freedom you desire. The first step to doing that is decide what financial freedom looks like for you. Get a clear picture of what your “baseline” is and what your “dreamline” is.
I am a firm believer that if you stop dreaming and growing, you are slowly dying. Dramatic? Maybe. But I stand by it and use that belief as I work at achieving my own financial freedom. I have come so far from that day I wanted to run out of the meeting. I have achieved more than I thought I could, and I now know confidently that I have more goals to reach.
Financial freedom isn’t just a dream—it’s a journey that we can embark on together. Remember, every small step you take today brings you closer to the lifestyle you desire. So, what’s your first move?
Let’s Go! I want to hear from you! Share your experiences with side hustles or financial strategies in the comments, and if you’re looking to kickstart your journey to financial freedom, don’t forget to download my free guide here.
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