The other day I got a call from a friend of mine who’s American, but he lives here in Japan.
We talked for a bit about business, then somehow we got on the topic of our families and I mentioned how tough it is for many people living away from their families.
He agreed and then started telling me about his mother’s situation.
She lives in America and just turned 70 which used to be considered our golden years.
These days it seems that they’re not so golden after all.
She gets about $800 from social security which isn’t enough to live on so she continues working.
She earns another $1200 before taxes from her job as a caregiver.
Unfortunately, she is what we call “the insurance poor.”
She has health insurance, car insurance, home insurance and renter’s insurance to cover and she is barely able to make ends meet each month.
In life we are taught to study hard, get a job, work hard and build ourselves a better future.
What people don’t tell you is that there are two things you can’t avoid – taxes and insurance.
We must pay both to live, but most people don’t realize just how much we have to put aside to cover these two things.
I have read in more than a few books that we each work for 3 months of the year just to pay our taxes.
With the economic crisis still gripping the world and more and more countries struggling to cover their costs how soon before our taxes go up.
Then you have to work another month or so to cover our various insurances.
It’s a sad state of affairs, but a reality of life.
But my job isn’t to discourage you, I’m here to offer suggestions and advice.
Even with our income ravaged by taxes and insurances we can still become rich. But we have to learn to play the game.
The game is business, investments and savings.
Studying any one of these could very well change our entire financial future.
I have a few clients that are in their 20s and when I suggest that they study investing their eyes tend to glaze over.
If you’re young, have a job you like, and can save some money, then investing can seem like a big waste of time.
But time and time again, I’ve seen dream jobs become nightmares when a new boss is brought in or you are given a new client.
We don’t stay young forever and sooner or later must face the fact that life isn’t all clear skies.
By investing in our own future we give ourselves a better fighting chance.
I thank you for doing just that by reading this blog.