You already have the tools to become rich or grow your current riches. The formula is so simple and I learned a long time, but I have to keep reminding myself, because there are so many temptations in life.
Spend less than you make, invest the rest. Don’t mess with your money path.
The last part is the hardest. We want to touch everything. Our ego gets the best of us and we think can do better than the market. We think we have learned enough or found some secret investment that is going to pay huge dividends, that the rest of the world didn’t. And of course we listen to people we shouldn’t. Shut out the noise!
The more you save the richer you will become.
Here are the
- Create a budget. Every dollar should be put to work.
- Pay Yourself first.
- Use a cash back credit card and pay your fixed bills with it.
- Use a Savings Roundup App.
- Increase your contribution to your 401k or open a personal ROTH IRA.
- Start a side hustle and put that money away.
- Put your money in a higher interest rate Savings Acct.
Once you start seeing those dollars roll into your savings account:
- Eliminate debt
- Fund retirement accounts
- Invest in index funds
Do whatever it takes to cut your expenses. Your life depends on it. One day you are going to be older and need all that money for your health and your family.
Personal debt is bondage. I don’t care if it is credit card, student loans or mortgage. Your first priority should be eliminating debt.
You are not Warren Buffet. Buffet has the rare ability to pick stocks that are massive winners, but he has also made mistakes. But you are not him and your full time job is not picking stocks. You should be investing in index funds. Like VOO or VIT
Lost cost index funds will out perform the endless stream of mutual funds and money managers. You should check out index funds from Vanguard, iShares and Fidelity. You can choose an overall market fund or go for greater profits by investing in a sector or commodity index. The point is you should be invested in the market and enjoy the magic of compounding.
Now it is tempting once you start saving to spend that pile of cash of that are accumulating. That’s why it is important to automate your investments so you aren’t tempted.
Patience and persistence saving and investing will make your RICH. Before you know it your reach financial independence.
savings = options
You should also put those savings in a savings account. Don’t use the big banks. Wells Fargo, Bank of America etc. Online banks and smaller institutions will pay you better interest rates.
Savings Accts you should use:
Your savings rate will always change with the federal interest rate. Don’t worry about where exactly it is at. Just make sure you are getting something for parking your money somewhere and the institution is not charging you crazy.
Now go get rich.