How to Accumulate Wealth
The basics of accumulating wealth is simple, the patience and commitment it requires is the difficult part. If one can focus and resist the temptation to overspend, wealth is surely attainable. Here are a few fundamental steps to achieving wealth.
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Things You'll Need
- patience
- time
- investment vehicle (stocks, mutual funds, bonds, etc.)
- savings account
- dedication
Instructions
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1
Aim to save 10% to 15% of your monthly salary. Right now, you may only afford 5% to 8%, but budgeting will help increase this percentage over time.
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2
The remainder of your salary should be budgeted to pay major and minor bills (mortgage, car note, insurance, etc.), debt (reducing credit card debt, loans, etc) and funds towards miscellaneous activities (school activities, holidays, etc.) Stick to this budget, spending beyond this budget will cause you to pull from your savings in Step 1 - which should be marked as off limits.
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3
Make a retirement plan. Retirement doesn't necessarily mean 60 or 70. If you wish to retire at 30, calculate the amount you would need to achieve retirement at this age and at the comfort level you would like to enjoy during your retirement (making sure to take in consideration inflation over time).
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4
Make your money work for you. Research stocks, bonds, treasuries, mutual funds, certificates of deposits and etc. and determine what investment vehicle will generate the best return on your funds.
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Tips & Warnings
Wealth isn't achieved overnight - so do expect your patience to be tested.
Resources
- Photo Credit www.billboardmama.com
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Comments
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yeah, guys we need to get out of debt.
