Okay, at this point we have discussed living on a budget, living below our means and automating our savings and investing habits. The next step is to choose your plan for abundance.
The First path is the Slowlane - this involves the usual financial advice:
Buy and Hold
Dollar Cost Average
Mutual Funds
Pay Off Your Mortgage Early
Plan for the Long Term (Age 65)
This path is for those who wish to spend the least amount of time on their financial goals, want to acquire the least amount of financial education and are willing to take the least amount of risk.
This path will help you save diligently for retirement and at the age of 65, you will be wealthy and live very comfortably.
If this is your path, that is okay. Not everyone has the desire or discipline to learn and become financially independent at an early age.
The Second path is the Fastlane- this involves the advice I have learned from people who are not only wealthy, but became wealthy faster and younger. This path involves using the same advice as the slowlane but then modifying it into the following advice:
Using Leverage and A System for Stock market Investments
Knowing Your Entry and Exit Strategy
Stocks, Options, FOREX, Hedging with Foreign Currency or Gold
Using Real Estate Leverage to purchase Commercial Real Estate
Creating A Monthly Passive Income to replace your job
Retiring Younger (40's-50's)
This path requires more reading, working with mentors and other investors, developing a profession advisory team, finding a mastermind group and getting out of your comfort zone more.
This path does not mean you are getting more risky. It means you will be learning about more complex investments and thus it requires more education and the help of others.
The Third path is the HOV Lane - This is a mixture of both the fastlane and the
slowlane. For instance, you may invest in mutual funds in your 401k but use leverage to buy commercial real estate strategy as well.
In the future, I will offer financial advice for both lanes and you can determine if the HOV lane is applicable.