To Securing Wealth Each Day
It really boils down to making some sound decisions day-to-day:
- Set goals. The adage, “If it doesn’t get written, it doesn’t get done” holds true here. Sit down and compose a basic plan that includes your current net worth and debt-to-income ratio. Then, map out a monthly budget and a plan for regular saving and investing.
- Spend cautiously. It’s easy when you begin making more money to want to buy a more luxurious car or move up to a nicer home. But before spending the money, ask yourself: Would I rather have a fancier car or would I rather be wealthy? Bottom line: If you take extra money and invest it instead of spending it, you could become wealthy. In the same vein, be wary of debt. Avoid using credit cards unless you can pay off the balance quickly. If you do carry debt, concentrate on paying it off as quickly as possible. The interest you’re paying is money you could be saving.
- Save often. Saving even small amounts over an extended period of time is a sure way to enjoy wealth. The key is to make it something you do regularly and consistently. Here, consider having a portion of your salary automatically deposited in your savings account each pay period (10 percent is a good place to start). Next, educate yourself about investing. After you have enough saved to cover emergencies and unexpected expenses, consider investing in quality stock and bond mutual funds. Just have money deducted from your bank account automatically every month.
(As soon as I have two dimes I am going to try this out!)
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