How to reach retirement or financial independence in a world with 0% rates and no returns on bonds

If I were Marty McFly from Back to the Future, I would travel back and warn everyone against borrowing money from their future selves.

Note: This article originally appeared on Marketwatch. We’re re-publishing this article here for people looking ahead to their financial planning options for the year ahead.

Understand What It Means to be “Financially Free”

To save for your retirement, you must first understand what it means to be financially free. Financial freedom means preserving your capital, earning yield on the wealth you’re creating, and budgeting for your savings to outlast your days on this planet. The goal of financial freedom is to get to the point where your monthly income is greater than your monthly expenses. When you’re spending, you’ll be spending against your own earned money and not against what you hope you’ll earn in the future. When rates on deposits drop below the inflation rate it becomes impossible to save for the future and so one must invest in more risky assets or in non correlated assets to escape this impossible savings conundrum

Can you see the dangerous trap here if you can’t pay it back?

The current policies by the Federal Reserve also stifle retirement plans for the younger generation. Current approaches cause low or non-existent income for most savers, and there is no indication of it getting better for the foreseeable future. Decades ago, with Social Security and a pension from an employer, a person could expect to sustain themselves in retirement. Now, too many people find themselves retiring with student loans, car loans, and more that make retirement difficult to realize.

Think Outside the Banks

Start asking yourself this every time you spend a dollar: Do I want to spend this dollar now, or do I want this dollar to earn for me for the rest of my life? Changing your overall mindset of how money should be put to use can change your life.

Stop reading this, and start saving now!

Compounding interest is interest on your interest, your new dollars plus the original dollars calculated based on both the initial amount and the accumulated interest from previous periods. Celsius Network, my rewards earning crypto company, has a calculator that shows you how much you could earn weekly on your crypto and stablecoin assets, and even shows you what that savings looks like compounded over 20 years.

Founder of @CelsiusNetwork | Transit Wireless| Arbinet | Tech Innovator with over 50 patents and awards

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