If you are like most moms out there, now that you have a family to think about, you are probably trying to build a strong financial future, both for yourself and your children’s education. A great place to start, and one of the traditional benchmarks of career success, is securing your first workplace 401(k), which is the foundation of a solid retirement plan.
Here’s why a traditional 401(k) is a great place to start your retirement savings:
- If your employer matches your contributions (which most do), you get an instant 100% return on part of the money you invest in your 401(k). That’s free money!
- Tax-deferred growth means your money grows faster.
- Pre-tax contributions lower your taxable income, which makes it easier to invest more.
But, 401(k)s do have some shortcomings. First, you’ve got a limited number of mutual funds to choose from, which can keep you from investing in high-performing funds on the market. Second, your 401(k)’s tax-deferred growth is a double-edged sword. While it works to your advantage while you’re saving today, it means you’ll owe taxes on the money you withdraw from your 401(k) in retirement tomorrow, lowering the net amount.
That’s why you usually need more than just a traditional 401(k) if you want a secure retirement. So, what else should you invest in?
And what if you don’t even have enough money left at the end of the month to invest the optimal amount?
Research shows that too few Americans are saving for retirement. And those who do save are putting away too little. According to Chris Hogan at Dave Ramsey Solutions, to adequately fund your retirement, you should be investing 15% of your gross income into retirement savings.
For many of us, investing 15% of gross income from a day job doesn’t leave enough left to pay the bills and the debt, much less enjoy a better quality of life! We weren’t meant to slave away just so we can retire! Current life AND retirement should both be fun!
How to increase your disposable income without working more hours away from home:
So how can we add extra income streams into our lives, to allow for both spending and adequate saving, without having to spend more of our precious time away from our children, who we’d like to be able to enjoy before they grow up?!
The key is to avoid or limit your involvement with linear income opportunities. In other words, stop trading time for money, the typical “employee-wage” model.
In the book, “The Millionaire Next Door,” by Thomas Stanley and William Danko, the researchers found that three out of four American millionaires owned their own business. Not that you cannot become wealthy working for someone else, but you usually have more opportunity and greater potential in your own business.
But for many, the idea of entrepreneurship is very intimidating!
And it’s no wonder, when you think about the challenges associated with starting a traditional business: specialized knowledge, significant upfront investment, inventory, accounts payable and receivable, employee challenges, and with all of that, a low national success rate.
But guess what, “traditional” businesses aren’t the only option. Today, more and more people are discovering that it is actually possible to create your own money-producing financial asset without all those traditional challenges. And, in fact, it’s possible to create it in only 2 to 5 years, with a part-time effort, and an initial investment of less than one mortgage payment. The traditional monetary benefits of business ownership are now accessible to anyone and everyone through Network Marketing.
The Benefits Of Secondary Income With Network Marketing:
The main benefits of having a secondary income with Network Marketing include:
- Low start-up cost
- Pattern of Success that is already established – simply sign up, learn, and grow (aka, turn-key business)
- Motivation and Excitement
- Team success approach – In business for yourself, but not by yourself
- Incredible time duplication
- Reduced stress in life
- Working part-time around your own schedule, no set hours
- Major tax benefits of owning and operating a home based business
The additional income opportunity from Network Marketing comes in all sizes, depending on how long the individual has been building their business and how consistent they are with their efforts, and there is no upper limit. And the great thing is, at any level, there is always a benefit. Between the home office tax write-offs, the monthly income from your personal sales, and the leveraged income when you start building a team and helping others earn money for themselves, any amount is extra money in your pocket that you can use to pay bills, pay off debt, treat yourself, or invest into that retirement account to help you hit or surpass that 15% of gross income.
And all the while, you are investing into a business that keeps growing and growing over time, and eventually can far outperform any investment interest rate. Now that’s smart investing!
As you can see, building a secondary income with Network Marketing is a very exciting concept, and it will change your life immensely once you dive in and immerse yourself.
If you have not already made a decision to pursue alternative income opportunities to supplement your wages and 401(k), I encourage you to make it today! Decide today to become more financially diversified and begin to experience the amazing power of having leveraged time and income in your life.
Click here to learn more about how to build leveraged secondary income, and see more from Katharine Transue, A-Game Side Income Mentor and Subconscious Self-Transformation Coach.
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