Saving Secrets of 28 Year Old Who Retired With Over $2 Million

After seven years of working in the corporate world, one New York City-based twenty-something had a nest egg big enough to retire early.

She goes by the pen name J.P. Livingston on her blog The Money Habit, where she discusses how she had financial independence on the mind from an early age. When she was only 12, she picked up a copy of the personal finance classic “Rich Dad, Poor Dad,” which sparked her interest in saving and investing.

When she realized she could save big by finishing college in three years, she jumped on the opportunity. Graduating a year early “really helped me financially,” she tells CNBC Make It. “It saved me a year of tuition and gave me a year’s worth of extra income, and between the two things, that’s a $150,000 net worth swing.”

After graduating, Livingston took a job at an investment firm, where the starting pay was $60,000, plus an end-of-year bonus that was almost the same amount. Total: just over $100,000.

After seven years of stashing more than 70 percent of her income, which increased over the years, she built a nest egg of $2.25 million, 40 percent of which came from investing and 60 percent from saving. It was enough for her to quit and settle down at age 28.

Today, she lives in New York City with her husband, who still works, and dog. They live off a modest $65,000 per year, which allows them to maintain a high savings rate.

Livingston made a lot of money, but she also used a variety of strategies to save big over the years…

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Dr. John Beckem: How To Eliminate Debt So You Can Start Investing & Building Wealth

In the segment below, Personal Finance expert Dr. John Beckem gives an overview of what it takes to eliminate your debt and put systems in place that will lead to wealth building that can be sustained from generation to generation.

You can sign up for the Debt Elimination Blueprint here:  https://goo.gl/enxAmi

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

 

 

Dr. John Beckem: Exchanging Your “real” Money For Cryptocurrency Could Be Unwise

By Dr. John Beckem

Ask yourself a few questions:

Who governs Cryptocurrency?

What laws are in placed to deter predators from stealing your digital currency?

Who enforces these laws?

Any robbery or attempted robbery of a bank, credit union or savings and loan institution constitutes a federal crime. Police have measures at their disposal to catch bank robbers, such as well-armed SWAT teams and Forensic identification techniques.

A further factor making bank robbery unattractive for criminals in the United States is the severity with which it is prosecuted. Accounts at all U.S. banks are insured by the Federal Deposit Insurance Corporation, a corporation of the federal government, bringing bank robbery under federal jurisdiction and involving the FBI. United States Federal Sentencing Guidelines for bank robbery gives long prison terms, and parole is not allowed in the federal prison system.

The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government. The SEC holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation’s stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States.

A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
However, because cryptocurrencies are virtual and do not have a central repository, a digital cryptocurrency balance can be wiped out by a computer crash if a backup copy of the holdings does not exist.

Cryptocurrencies are not immune to the threat of hacking. In Bitcoin’s short history, the company has been subject to over 40 thefts, including a few that exceeded $1 million in value.

Why exchange US dollars that are backed by the US Government for a currency that is completely digital and vulnerable with no recourse for theft?

Think about it!

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Dr. John Beckem: Top Five Obstacles to Building Wealth

By Dr. John Beckem

1. LACK OF DISCIPLINE
– If you spend more than you earn, the math will never work.

2. POSSESSING MORE LIABILITIES THAN ASSETS
– Simply put, Assets put money in your pockets, Liabilities take money out of your pockets.

3. NEGLIGENCE AND LACK OF CARE FOR THINGS
– Constantly replacing items due to negligence and lack of care is like pouring water in a bucket with a whole in it. Everyone in the family must be on board with implementing behaviors that build wealth.

4. LACK OF FINANCIAL EDUCATION
– Personal Finance & how to build generational wealth is not taught in the K-12 or Secondary educational system. What is taught is Corporate Finance (how to manage your employers finances for the company). If you want to learn Personal Finance you must learn through publications, seminars, and mentors.

5. LACK OF KNOWLEDGE REGARDING TAXES
– The #1 expense for most people is taxes. In the U.S., there are four types of income which determine how much tax you pay.

a. Ordinary Earned Income (40%) – is what you earn when you work for an employer and trade your time for money. You receive a paycheck and pay approximately 40% of your gross income to taxes.

b. Self-employment Income (60%) – is the income you make working for yourself as a sole proprietor such as a lawyer, dentist, doctor, chiropractor, etc. You are your business. If you are suddenly hit by a bus, get sick or miss work, your income and business stop. Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. Taxes for Self-employment Income are approximately 60%.

c. Business Income (20%) – is the income you receive from businesses in which you own an interest such as Partnerships , Limited-Partnerships, Corporations, or Limited Liability Companies. This is income you receive from your business working for you. It generates income whether you, as the owner, are there or not. Taxes for Business Income are approximately 20%.

d. Passive Income (0%) – is the Income you earn from an asset you own such as Real Estate Investments, Paper Assets, and Royalties. Taxes for Passive Income are approximately 0%.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Ask Dr. Beckem: Why Can’t We or Don’t We Build Another “Black Wall Street”?

By Staff Blogger

Most people know that America had what was once called a “Black Wall Street” and that it was destroyed in 1921.  Since then, in spite of many people talking about rebuilding something similar, it has not seemed to come together.

In the video below, Dr. John Beckem answers a question about Black Wall Street and why it was never re-built.

“Here’s a loaded question: Black people in America during the days of the various “Black Wall Street” communities across the nation practiced collective economics and embodied the fundamentals of generational wealth building. In fact, many of the immigrant communities who came to America at that time emulated what they saw blacks doing for their own benefit. What do you believe caused blacks to historically lose or forget the teachings about collective economics and generational wealth building that they formerly embodied?”

Dr. Beckem’s book recommendation: PowerNomics : The National Plan to Empower Black America by Dr. Claud Anderson

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Ask Dr. Beckem: I Want To Invest But I Have A Lot Of Debt – Can I?

By Staff Blogger

Many people assume that not having a high income means that investing is not something they can do. When they have high debt, the question of whether it is better to tackle the debt or plan for the future by investing tends to leave many people confused.

In the video below, Dr. Beckem breaks down how to handle high debt and make the best decisions about investing and saving.

[Question: How can one safely reduce credit card and student loans reasonably so they can save more and invest?]

Dr Beckem’s book recommendations (affiliate):

 

Ask Dr. Beckem: Am I Missing Out By Not Investing In Bitcoin or Other Cryptocurrency?

By Staff Blogger

Lately it seems that everyone is talking about Bitcoin. Almost everyday there is another update about how “bitcoin” has gone up”. For many people, now that investing in bitcoin would costs thousands of dollars it has become almost out of reach. Even for those who could invest, a cloud of doubt still looms over bitcoin and other options for cryptocurrency.

So what exactly is cryptocurrency and to ask the question on many people’s minds, is it really as great an investment as it seems to some?

In the video below, noted Personal Finance expert, Dr.John Beckem asnwers these questions.

Dr Beckem’s book recommendation (affiliate): “Why the Rich are Getting Richer” By Robert T. Kiyosaki

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.