Women – Creating Your Dignity Money

You’ll rev up your Money Machine – your well-oiled piece of equipment that churns and burns as it works for you, even when you don’t – by first creating what I call “dignity money.” This is the calculation of money you’ll need down the road in order to live a very minimal, luxury-free life each month. It’s your insurance, so to speak, against destitution – or ‘bag lady’. You can figure out how much dignity money you’ll personally need by determining the smallest amount that it will cost you to live each month. Add up what you spend each month for food, transportation, taxes, housing, telephone, utilities and insurance. Don’t include any frills.

One very important basic is your home. If you own your house or apartment, your mortgage or maintenance is likely to be one of your major expenses; it is perhaps your single greatest expense. Paying off your mortgage greatly reduces your monthly outlay and therefore reduces your total dignity-money requirement. For many women, eliminating mortgage debt is an essential step to achieving financial independence. Calculate your dignity-money needs both ways-with a mortgage and without. Depending on the current size and condition of your Money Machine, you may find that financial independence may arrive for you only after the mortgage is paid, whether that date is five, ten, or more years from now. Of course, the sooner the better!

Your dignity-money calculation can be a rough number; that’s okay. It might be $1,000 a month or $10,000. Each person’s sum will be different. In any event, your dignity-money figure is the target level of income for the first stage of creating your financial freedom. Your goal is to generate this amount of cash from your Money Machine each month going forward so you won’t have anxiety about the basic care of yourself in the future. If you already have your dignity money, then you can feel at ease. Knowing that you’re financially secure should give you a good feeling all over and relieve whatever stressful flutters you might have had about money. If you have yet to establish your dignity money, then it’s time to begin working toward it. Believe me, no outing, new trinket, or other toy is worth the cost of not taking this step.

How do you figure out how much your Money Machine needs in order to generate your dignity money? The calculation is simple. Multiply your monthly dignity money number that you’ve calculated by 12; then add a 0. This provides an estimate of how much money you’ll need to invest in order to generate the appropriate monthly income. For example, if your minimal monthly expenses are $4,000, then multiply $4,000 by 12 and add a 0. That means your yearly expenses will total $48,000. Your Money Machine will need $480,000 in order to provide you with dignity money. Why? At $4,000 a month, your yearly expenses will total $48,000. The rate of return on investments varies, of course, but history shows that a conservatively well-tended Money Machine should yield approximately 10 percent each year. This means that your Money Machine will need $480,000 in order to pay you an annual income at the rate of 10 percent per year, or $48,000.

The same formula-monthly expenses times 12, plus a 0-works for any expense level. If your minimal monthly expenses are $6,000, your Money Machine should contain $720,000: $6,000 times 12 is $72,000; adding a 0 brings it to $720,000. If your monthly expenses are $1,500, then you’ll need $180,000 in your Money Machine. Do your own calculation.

This calculation requires one important adjustment-deductions based on the inflation rate. Inflation gradually shrinks your money’s value. Therefore, whatever figure you compute will be worth less in the future. Consequently, the amount in your Money Machine will have to be somewhat greater to compensate for the effects of inflation. Unfortunately, no one can know for sure how high the inflation rate will be in the future. A high inflation rate, like the one we experienced in the 1970s, will have a strongly negative effect on the value of the money generated by your Money Machine. The moderate inflation we’ve had so far during the 1990s (averaging around 3 percent a year) isn’t nearly so powerful. The power of inflation grows significantly as time passes. If you are only one or two years away from the time when you plan to ease out of working, inflation will have little effect on your plans. But if you expect to work for two or three more decades, inflation will make a noticeable difference.

Let’s say you calculate your dignity money to be a whopping $600,000. That seems like a lot of money to feed to your Money Machine, and the thought of how to amass such an amount might be daunting. But if you save this $600,000 gradually, rather than all at once, it will be much less intimidating.

Consider Rachel Levine, Lynn Attwood and Betty Scott as they envisioned their financial pictures.

Rachel is the assistant museum curator who lives with her husband in a house they’re fixing up in Dallas. Rachel earns $30,000 a year. When I met her, with her discreet diamond earrings and self-assured air, I imagined that Rachel had already begun to build a financial future for herself. I was wrong. Once we warmed to each other in the hot tub at the Ranch, she easily confessed that her fiscal future was tottering a bit and asked what she could do at her age, starting with the $10,000 she and her husband had squirreled away in money market funds. Rachel and I chatted about the dignity-money concept, and she concluded that she and her husband would want to have $600,000 in their Money Machine. Here’s a closer look at how Rachel and David can accumulate the dignity money they’ll be looking for in later years.

Rachel enjoys museum work, and David enjoys his work, too. So they see themselves working into their mid-sixties. That’s about thirty-six years from today. Using the Rule of 72, we calculate that if their money grows at an average annual rate of 10 percent (a conservative average return on stocks), it will double every 7.2 years. In thirty-six years, when they reach sixty-six, their current $10,000 investment can double five times:

o $10,000 3 2 = $20,000
o $20,000 3 2 = $40,000
o $40,000 3 2 = $80,000
o $80,000 3 2 = $160,000
o $160,000 3 2 = $320,000 at age 66

So with their current savings of $10,000 alone, they’re halfway to their goal! Now all they need to do is squirrel away some money each month in order to meet the other half of their goal. It is likely Rachel’s income will increase with raises, promotions, and career moves, and David’s contracting business is expanding rapidly. This should dramatically raise his annual profits. As the Levines eventually accumulate more cash to invest, their Money Machine will gain more steam. Another plus: They have only about $50,000 left to pay on their mortgage, so they will own their house by the time they want to ease out of working full-time.

Lynn Attwood said: ‘To grow my own dignity money, I estimate that I will probably need to put $700,000 in my Money Machine. That means I’ll have $70,000 a year to live on.” To advance to the next step-to live more freely, to travel several times a year, and to entertain and frolic without guilt at some of her favorite stores-in other words, to maintain her present lifestyle-she will have to have more cash invested in her Money Machine – in excess of $1 million. And she likes to dream even bigger, and is inspired for several million dollars. The important thing to note is that creating the Money Machine begins with securing your financial necessities and then moving on. And the tools are at hand to make this process easier than our fears would lead us to believe.

Betty Scott figures she’ll need less dignity money than Lynn does. She earns $76,000 a year as an attorney at a small public-interest firm that specializes in environmental law. Betty grasps the principle of spending less than you earn and investing the difference and is prepared to do exactly that. Right now, her basic, no-frills monthly expenses total $3,500. That means her Money Machine will have to contain $420,000 to establish her dignity money. “If I cut back my expenses, I think I can eventually squeeze out $10,000 to invest,” Betty announced. “That means you have to really shave those credit cards,” I reminded her. But if Betty is able to commit $10,000 a year to her Money Machine, she’ll be in great shape by the time she’s sixty-five. The benefits of securing income from your Money Machine are pretty obvious. It’s possible to handle it all along the way and still have a good time enjoying life as you go.

A Quick Rundown of Professionals

Tips in Hiring a Divorce Lawyer It is a very difficult time for a family if ever they will be facing divorce issues and this is accompanied by difficulty in choosing the appropriate lawyer that will be right for you so that you will not waste your time and money. Finding the right or appropriate divorce lawyer for you is the key for your successful divorce process and this is not to waste your time and money in the divorce process that is why there are certain factors that you have to consider also. You have to be realistic in knowing the true tasks and jobs when you are your divorce lawyer because your lawyer is not their as your coach when you would want to let him or her know about your feelings and emotions. To better utilize the services of your divorce lawyer where they are getting paid at a higher rate than other common lawyers, you must relay issues and information to your lawyer that are necessary so that your divorce case will move forward, quick or fast. For your divorce case to be successful and short, you must stay focus all the time on your goal and your ultimate goal is to get divorce that is why you must prevent your emotions and other feelings to get into you when you are already in court. Before you hire a divorce lawyer, you must first determine on the things that you want when you get divorce so that you may only need a mediator if your divorce case is not that complicated when negotiating things with your partner.
The Path To Finding Better Attorneys
For you to source out the best divorce lawyer that will match or will fit your needs, you must at least inquire from three lawyers so that you can create a comparison that will let you determine the prices, traits and expertise of each lawyer. There are many potential divorce lawyers that you can search over the internet and you could read the testimonials or reviews of their clients or you can also ask recommendations from your friends, colleagues or other family members who can help you recommend to their lawyer.
Getting Creative With Lawyers Advice
You can start your communication with your potential divorce lawyer by calling him or her over the phone in his or her office and you may observe on how does the lawyer answer your questions then if you are satisfied, you can set-up a meeting with the lawyer. Your chosen divorce lawyer must be professional, alert and knowledgeable when he or she represents you in your court trials or in other meetings so that you will not spend a long time in your divorce case.

Why Professionals Aren’t As Bad As You Think

Four Ways to Screen Accident Lawyers Before you hire any attorneys to handle your accident case, it’s crucial to screen them to find the best person for the job. Not all attorneys may be interested in your case and those interested, not all may be right to work with. Use the four tips below to screen the lawyers. i) Biographical Information Do a background check on the attorneys and find out as much as you can about them. One easy way to carry out a background check is to simply search for the name or the attorney or their law firms on the Internet. The information available on the attorney will give you an indication of what to expect from them. A professional attorney should be cited in a number of high profile accident cases. Apart from this, they will be highly recommended at different consumer review websites.
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ii) Cases Worked On
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Find out what types of cases the attorneys have specialized in. The best attorney to hire for your case is one who’s specialized in car accident cases. Go through the websites of the attorneys and check the cases they have worked on. Are there any accident cases? It’s also important to find out whether the attorney you want to hire has successfully helped accident victims get reasonable compensation in recent months. You should hire attorneys that have been actively involved in accident cases over the past 12 months. iii) Qualifications of the Attorneys Find out what professional qualifications the attorneys have. Attorneys with a number of professional qualifications will be great assets to your case. Confirm that the attorneys are certified members of the local state bar association and have other legal qualifications. You should also confirm that the attorneys are members of local professional organizations. Hiring a well-respected attorney can have a positive impact on your case. iv) Check References Find our whether your family members, friends, work colleagues or other people you trust know any of the lawyers you have shortlisted. The alternative would be to ask the lawyers for prominent clients that they have helped with accident cases in the past. Contact the referrals and inquire what they think of the attorney. Most people will not be afraid to give you honest information on what they feel about the lawyers. You can also search for reviews of the attorneys online to find out what other people are saying about them. You will not miss to find lawyers who will want to work on your case. However, to find the right attorney, you need to do some homework. To find the right attorney to hire, you should screen the lawyers.

Short Course on Businesses – Covering The Basics

3 Ways in Which a Lawyer Can Help You One of the things you should do after you’ve been involved in a car crash is hiring a lawyer. A competent attorney will be a great asset and will make it easy for you to handle any legal activities related to the accident. You will find a number of experienced lawyers that will be willing to help you get compensation. However, the most important thing is to hire those who are experienced in accident cases. Accident attorneys can help you file a claim, negotiate a settlement, gather evidence of the case, file a lawsuit and handle other legal matters related to the accident. Below are the major ways that an accident attorney can help you: i) Determine the right compensation It is difficult to know how much will be the right compensation to ask from the insurance company if you not take law studies in the past. Insurance companies are likely to take advantage of your ignorance of the law and offer you a menial compensation if they realize you don’t have a lawyer representing you. You can be sure of receiving a fair settlement when a lawyer is helping you.
The Key Elements of Great Attorneys
The attorney knows how to value your claim and will advise you on the amount you should press for in a claim. Moreover, the attorney will look at the circumstances of your case to know how much the insurance company can offer.
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ii) Determine how much your cover is The lawyer can help you know whether your current accident policy is enough to cover the damages you may have incurred from the accident. The lawyer can go through your policy documents to advise you on exclusions and inclusion in your cover. If your current policy will not be enough to compensate you for your losses, the attorney can help you get more settlement from the driver at fault. You may not be able to understand your cover limits and know your options without the help of a lawyer. iii) Negotiate a settlement The attorney can compel the insurance company to offer you a larger settlement than you can get on your own. The lawyer will know how to handle the defense put up by the insurance company and how to handle its lawyers. A skilled lawyer will know the areas of the law that talk about the rights of accident victims and will have the evidence to prove you will win the case should it have to be decided in court. When negotiations are completed, you will end up with a higher compensation than you could have won on your own. It is advisable to hire a lawyer to help you with any accident case.