article · June 2010
The Financial Equation That Will Set You Free
Smart Decisions + Good Math = Financial Independence

Smart Decisions + Good Math = Financial Independence
The fact is that most good jobs and careers go to those who have educated themselves. It is still the surest way to a long-term large income.
There are two things you can do to make this "good math" work for you. You can increase your income so that it outpaces your spending, or you can decrease your spending.
1. Buy a snazzy car. Not a good idea, though most eighteen year-olds would do just this. 2. Invest the money and take out the interest every year. This is nice. It throws you $3000 every year and over forty-two years you make $126,000 for doing nothing and you still have $25,000! 3. Here is the real deal! You leave the money alone for forty-two years at twelve percent (about the long-term average for the stock market). At the end of that time you decide to retire and go to the investment summary to see how much you have. What do you find? You find that your money doubled seven times and that leaves you with 3.2 million dollars! Can you retire on that? You bet you can.
You can achieve financial independence. You can live the life you have always dreamed of. You can have a life where you have enough at all times, especially in the end. It is possible. You just have to make smart decisions and use good math!