Created By Annie Jennings PR, National Publicist  
Like JenningsWire On Facebook

The Magic Number

A friend of mine, Stefan Wissenbach, asked me what my Magic Number™ was.

I thought about it and answered, 27.

No, he said, not your favorite number but your Magic Number™.

I guess my blank stare must have sent the message that I had no clue what he was talking about.

He explained that my Magic Number™ is the amount of accumulated wealth that I would need, based on my lifestyle, for work to become optional.

Or, to put it another way, what amount of savings do I need to be financially independent.

Wissenbach created the Magic Number™ and his website Themagicfuture.com is a wonderful site to help you find your number and create the habits and goals necessary to reach your personal Magic Number™.

I really liked this concept and decided to incorporate it into my own financial advising practice. Most of the people I counsel are thinking about retirement and every single one of them would love to maintain their current lifestyle.

Of course the only way to reach that retirement goal is by saving money and, unfortunately, too few people are very good at that. The statistics about retirement are rather grim.  Most people’s savings are dramatically under where they really need to be. Many are in revolving debt or they are living paycheck to paycheck.

The reasons people fail to save money are too numerous to mention but they all start with spending more than they make.

Until that problem is addressed, most people in the United States will never achieve any significant savings let alone their Magic Number™.

What I have found interesting is that there is a number for every person and yet almost no one knows what their number is.  The fact that most are clueless about what it would really take to retire is not surprising considering how few people ever have real discussions about money or how to manage it.

So where do you start?

First you need a budget to determine where you are financially. A budget form can be easily secured by visiting my website ifyourmoneytalked.com and joining my FREE member site. Once you join, download my Marriage Money Agreement which is a simple form that will help you figure out your budget.  After you complete that step you are on your way, because now you will know if you are spending more than you make.

Knowledge is power and if you are not where you need to be, start now and begin a serious savings program.  Just start saving 10% of your income and your financial world will begin to change. You will have taken a huge step toward making work optional!

So what is your Magic Number™?

Read more posts by Gary Sirak here. Gary is a contributing blogger for JenningsWire.