Financial Independence: Achieving 25% Savings for Future Security

Saving 25% of gross income for retirement is a crucial milestone, ensuring financial security and flexibility for the future.

### Achieving Financial Freedom: The 25% Savings Milestone
* 💰  Achieving a savings rate of **25% of gross income** is a significant milestone towards **financial independence and security**.
* 👴  The average age people start taking finances seriously and saving for retirement is **31**, which is later than ideal for **maximizing the benefits of compounding interest**.
* ⏳  Starting to save earlier allows for more time for investments to grow, making it crucial to **prioritize saving and investing as soon as possible**.
* 🌐  There are many factors outside of our control that can impact our financial future, such as market performance and social security, making it essential to **maximize what we can control - our savings rate**.
* 🚦  Starting to save between **20-25% of income early on** ensures a "green light" financial future, while starting later requires **higher savings rates to catch up**.
* 🎓  Hitting the **25% savings milestone** allows individuals to graduate from hyper accumulation to focus on **"abundance goals"** such as saving for children's college or investing in real estate.
* 💼  This milestone is the first step towards financial freedom, giving individuals the ability to **choose what to do with their money beyond meeting basic savings goals**.
* 🎉  Achieving a **25% savings rate** is a cause for celebration, as it indicates a **high level of financial discipline** and positions individuals as "**financial mutants**" in a society where many struggle to save even small amounts.

[Music] The next milestone. This one's an important one, especially for my financial mutants 'cause y'all know and we take a little flack for this. When people say, Hey, what do we need to be saving and investing for the future? We say, you know, obviously it depends on how old you are, but we always give a range of 20 to 25%. But the ideal is you to get to 25% towards retirement. Now look, we give you some grace because it's not only your saving investment, it's also your employer match and other things, but it is an incredible achievement and a milestone worth celebrating when you do cross 25% of your gross income going towards the future. It's wild, you know, we just said that 56% of Americans could not come up with a $1,000 for an emergency. When you are now saving 25% of your gross income, you are already automatically an elite and unique company that suggests that you are a financial mutant. This is a huge

milestone to celebrate. And so why? Why is this important? Why do we say this? Well, there's three reasons, right? One, people are waiting longer to start saving for retirement. Right now, we know that the average that people begin taking finances seriously and beginning to save is age 31. So you better make sure that if you are not taking advantage of savings in your third in your 20s, and you're waiting until your 30s, you want to make sure that you have a healthy savings rate so that you get to control and own your financial future. Well, I mean, but there's a disconnect here, Bo, because this frustrates me a little bit 'cause I want people to live their best financial life. And you know, 'cause you just shared people are waiting until they're 31 to start saving investing, but then the same people will then fill out the survey and say they're wanting more flexibility, more freedom before they get to age 65. They don't want to do the traditional path of

waiting to 65 and getting the gold watch. They want to do things on their own terms, own their time that much sooner. But how can you say that this is the goal when you defer starting to build your army of dollar bills so they can work harder than you can? And that's the part where I would encourage you, challenge you. Don't fall into this trap that's out there where people are saying, hey, why invest? There's even this whole thing where people are talking about income leveling and spending where defer because you'll make more money in the future. And that's when you'll save and invest. No, do not underestimate the value of what time can do for you. This is the most valuable resource that you have, is your time. Because if you can give it that extra five years, that 10 years of your money working for you is what is going to really amplify and compound your wealth. The other thing that we love about saving 25% is that there are so many things that are outside of our control. Do we have access to a pension? What's

going to happen with Social Security is the market going to be a really positive Market is going to be a negative Market all of these outside of our control factors impact our finances why not maximize the things that we can't control and one of the biggest things that we can control is our savings rate and we know that likely no matter what age we start but certainly if we start early if we can begin saving 25% for the future it's going to put us in a more secure financial future and it's going to give us more options to live the life that we want to live on our terms so if you want to know what can 25% do for you I mean the first thing I want you to know I want you to look at that if you if you're looking at this visual that we have out here for YouTube everybody who starts saving between 20 and 25 it's all right all right all right all green lights yeah cuz it is green lights you can just see it's green all the way

across whether you're saving 10%, 15%, 20%, it doesn't matter because you got that time component and crushed it 25, you're still going to be doing great even if you're doing 15% or greater. But notice we said that the typical person doesn't start saving investing until they're 31 years of age. You quickly start seeing that red and yellow on what 10% can do for you, what 15% can do for you. You better get serious and start thinking 20%, and then definitely by 25%. By the time you get to your mid-30s, don't let another day get behind you. I'm not saying look this isn't wealth building is in a game just for the Youth and the young. This is something anyone can do, but you got to be serious. The longer you wait, the more you're putting the responsibility on your income and your shoulders for discipline. The thing that I also love about the 25% is just like some of our previous steps, this is a

line in the sand where you get to graduate through the food. Brian, you want to hold the thing up for me. You now get to go from Step seven hyper accumulation to now focusing on some of those prepaid future expenses. Bri likes to call them the abundance goals. Maybe this is saving for your kid's College. Maybe this is buying that vacational. Maybe this is investing in real estate. Once you're hitting that 25% savings rate, you then get to choose what you do above and beyond that. This is the first step. It's not exactly Financial Independence, but this is your first step to Financial Freedom where you get to do the things with your money that you want to do because you know you're checking the box and the things that you're supposed to be doing. So this is a celebration Milestone at 25%. You get to keep moving forward.

THIS is an Incredible Financial Achievement and Milestone

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The Significance of Reaching a 25% Savings Milestone

Saving and investing 25% of gross income is a significant achievement, indicating financial responsibility and elite status.

This milestone is crucial because it allows individuals to take control of their financial future, especially as people are waiting longer to start saving for retirement, leading to a disconnect in the desire for flexibility and financial freedom in the future.

The Importance of Starting Early and Saving 25%

Delaying the start of building wealth can be a trap, as the value of time in saving and investing is crucial for wealth accumulation.

Saving at a 25% rate allows for control over financial security and provides more options for the future.

Starting to save between 20 and 25 years old consistently leads to positive financial outcomes, emphasizing the benefits of an early start.

The Importance of Early Investing for Building Wealth

Starting to save and invest early, ideally in your 20s, is crucial for building wealth over time.

Waiting until your 30s puts more pressure on your income and requires greater discipline to achieve the same results.

Aiming to save 25% of your income is a strong strategy for wealth building, emphasizing the significance of a proactive approach to personal finances.

Reaching Financial Milestones: The 25% Savings Rate

Achieving a 25% savings rate is the first step towards financial freedom and independence.

This milestone allows individuals to allocate funds towards their desired future expenses, such as their children's college, vacations, or real estate investments.

It signifies a transition from focusing on essential expenses to having the freedom to choose what to do with their money.