Teaching you to embrace today while making yourself a millionaire!

I wish I would have understood how easy it is to become a millionaire by starting to save small amounts of money when I was younger...

I feel compelled to share the simple concepts you can apply today....


17 April 2009

Live for Today - End Up Broke Later.......

I have made it home from my journey to Florida to save my Uncle from his eventual demise and helped my mother not go into a depression over the whole situation.

As promised - the story of the people we bought the trailer condo from.

A very nice couple in their early sixties in a panic to sell their home. They thought they did everything right. Worked hard, saved in their 401k's, raised their children and bought a retirement place to spend the winters at.

A few things happen to them. First, the home they purchased up north was very expensive. It was a home on a lake that feed into a river. They thought having water property they could never lose. However, due to commerce - and a natural disaster a decade ago - the lake literally dried up and has never been able to replenish itself.

The property was now worth way less than they owed on it. So they are trapped in this situation. On top of it the housing market has plummeted which made the situation worse.

When they bought their trailer in Florida they bought on the high side. They retired to early and the stock market dropped significantly. They can not make their payments and their dreams of living out retirement in ease - turned to disaster.

The bottom line is - financial planning never ends. If planning to live on your savings - you have to have it invested appropriately so you don't lose it if the economy goes bad.

The main message again is - if you start saving small amounts of money NOW over the long term - you may be able to avoid being in these types of situations.

Stay tuned......


kelete said...

nice article.... but
where are you supposed to dave those small amounts? can you fully trust banks?
also, if the amounts are smal now, they will be worthless in the future... unless you save lots and lots of small amounts....


Generation Millionaire said...

Thanks for the thoughts! See the post for APril 26th I answer your question in a 2 part series.

What the couple should have done was reallocate their money - leaving invested as aggressively as they did was a big mistake. Money should be tiered according to time frame and risk. They should have had aleast 3 years of money safely in a cd or money marketn - then they wouldn't be in such a bad spot and may have been able ot wait for the market to recover a bit.

site design: