The Three Big Rules For Building Wealth

Posted by Richard on April 13, 2023

1. Make money.
Use your talents, interests, and skills to get a job and keep working, even if you don’t work at the same place your whole life. Stay on the lookout for higher paying opportunities.

2. Save money.
Track your spending and make a budget. Carve out a savings goal.
Start early. If you start saving $1,000 a year at age 25, you could end up with five times what you’d have if you started at age 45, according to Investopedia.
Start saving as soon as you see it, but don’t wait. The earlier you start saving, the more promising your future.
Make saving automatic. Just like bill paying.
Ruthlessly cut your expenses and simplify your life.
Don’t get loans for new cars.
Build an emergency fund. Challenges arise and you have to meet them. Protect yourself with cash savings.
Get rid of credit card debt. Rank cards by their interest rate and pay off those with the highest rates first. For low-interest student loans, consider making minimum payments and investing in your 401(k) instead.

3. Invest money
Use your 401(k). You put in pretax dollars so it’s a great savings plan. Passing up employer contributions is giving up free money.
Build a plan and portfolio of stocks and bonds with a trusted professional advisor.
Don’t chase trends. If you hear about a hot stock, be skeptical. Stick with your plan.