If you are going to reach the mountaintop you are going to need supplies.
These “supplies” in terms are finance are lost cost tools that you are going to use to consistently invest your money in order to grow. The greatest threat to your financial success is your will power and taxes/fees. First your have to master your mindset and learn about what to do and not do with your money. The more your tinker with your financial plan the less you will earn. You are not a day trader. You are a long term business investor.
Because let be real, day trader are a flash in the pan here today gone tomorrow. Or they exist on Wall Street and their job is about to be taken over by a computer. The greatest investors are not day traders, they are long term business makers. And if you have read my blog or the book Rich Dad, Poor Dad you know: you are a business. Unfortunately in our society businesses are valued more than human life. At least according to the tax code. But you have the power to overcome this. You are going to take advantage of all the system that has been created for you. And the system is not all terrible. There government has done many things to encorage you to say and invest. The government actually desperately needs you to invest your money in the stock market. That’s what keeps the economy moving! And when the economy stops moving the government doesn’t get paid in the form of taxes and things start to get ugly for everyone.
So first you are going to form an investment plan and stick to it without fail. Then you are going reduce your taxes and fees as much as possible. That is if you want to reach financial independence, start a business, going the fanciest of trips, donate to charitable causes, etc.
So how do you reduce taxes and fees. You MUST pay your taxes. Uncle Sam will come after you if you don’t pay up. So consult a tax professional if you are unsure. I use TurboTax and everything works out just fine. And the truth is I am happy to pay my taxes. I love roads, bridges and the military. But do what you can to reduce your tax bill. No fees. Fees are the WORST. And financial institutions are the WORST about charging you fees. So you have to be careful, read the fine print and then consistently check your account to make sure that they are not charging you hidden fees. My parents are notorious for the letting the fees on the AT&T phone bill creep up to ungodly levels.
Fees kill your investment gains. You are going to need every dollar on the way to the mountain top. There are so many free tools out there today that you should be paying the lowest fees possible on EVERYTHING. Checking accounts, Savings accounts, Investment accounts those should all be free and actually they should be paying you interest.
I love the iphone and app revolution. They have changed the investing game. The big banks have drops their fees incredibly to compete with new and growing fintech businesses. I use M1 Finance for ROTH IRA. FREE. And they even reinvest my earnings for free. Technology has opened the door for everyone to be an investor. Try to get every financial service for FREE. And do not pay a financial investor to “manage” your money. They are going to charge you fees and spoiler: they are not going to outperform the market. You would be better investing all of your money in a dividend stock like Apple or AT&T.
Here are the free investing tools that I recommend:
- Personal Capital – To manage my budget and track my spending.
- Investopedia – To look up financial terms and educate myself.
- Yahoo Finance – Latest finance news.
- Robinhood – Purchase individual stocks
- Marketwatch – Look up stock performance and business financial data
- M1 Finance – ROTH IRA and investment account where I purchase index funds
- Charles Schwab – Check Account
- Worthy Bonds – High interest short term bonds
- Wealthfront – High interest savings account
Now these are not the only tools that I use. There are more, but they are not free so I left them off the list. I have a 401k and an HSA through my work. They are not free, but they have low fees. But I also do not get to choose these providers since they are through my employers.
Primek – 401k provider
Optum Bank – HSA provider
Sound off and leave a comment. I read them all. What accounts are you using and do you recommend?