Rus Articles Journal

The way to financial independence is how long?

, probably, are known to Much a name of Baudot Schaefer - one of the most famous millionaires who independently made the fortune. Now this person goes worldwide and holds seminars on the subject “Way to Financial Independence“ in which he tells about a simple way to financial independence on which he came in 7 years to the first million dollars.

But whether so just to carry out this plan in the conditions of the Post-Soviet countries?

At first it is worth defining what is financial independence. As tells us online - the encyclopedia, it is such level of the passive income which covers all our expenses for a certain period of time. If to speak a simple language, it is a situation when it is possible to live and not to work, at the same time satisfying all the requirements.

What advises Baudot Schaefer for achievement of financial independence? Well, of course, himself needs to find the financial trainer, that is the person who will teach you to be to the rich, giving constantly valuable advice. With this point presently problems do not arise as and it is possible to find a set of councils in the Internet on the subject of how to become the rich that needs to be done for this purpose and what it is better to refuse.

The second valuable advice from Baudot is acquisition of a habit to save means because not all that we buy is really necessary for us. Here I will begin to advise nothing as all have a concept of economy the, and it is possible to argue on it eternally.

The third council is creation of three plans, implementation of last of which and guarantees full financial freedom when the person does not need to work at all, and it is capable to provide a family at the expense of passive sources of the income. There are also other councils, but about them will not speak yet, and we will try to count whether it is possible to reach financial independence in 7 years, laying off only 10% of the monthly income.

The average monthly salary of the average resident of Russia, Ukraine, Belarus makes about 500 dollars. In a family usually two working persons therefore it is easy to count that the average family gains about 1000 dollars of income per month. If to follow advice of the European financier, then every month we will lay 100 dollars and to invest them in assets about not less than 12% per annum of the income.

So, in 7 years we will lay 8400 dollars. Naturally, we will not put money under a pillow, and to invest in the places giving 12% of profit a year therefore we will receive 4800 more dollars in the form of percent. In total on the account 13200 dollars will collect. If further to continue to invest means under 12% per annum, then every month you will receive 132 dollars. It will obviously not be enough for providing a family.

It turns out that the success formula from Baudot Schaefer is definitely not suitable for our domestic realities. For calculation average monthly earnings of a family of 1000 dollars were taken, the similar size of passive earnings will be reached only in 20 years if to lay the same 100 dollars monthly under 12% per annum of profit. It is more similar to the plan of long-term pension accumulation, than on the way to financial independence.

If you want to create a passive source of the income of 1000 dollars in 7 years, then it is necessary to lay 757 dollars, and it is any more not 10% of average monthly earnings, but all 75%.

Summing up the result, I want to note that the sense in Baudot Schaefer`s councils unambiguously is, and to financial independence everyone can come, but not as quickly as it is possible in America or Europe.

For the CIS countries the figures turn out: for obtaining the passive income in 1000 dollars it is necessary to postpone 7 years on 757 dollars or 20 years on 100 dollars. But what way of achievement of financial independence you would not choose, I wish you success and the fastest achievement of the purpose.