One Decision Separates the Wealthy From the Non-Wealthy
.One Decision Separates the Wealthy From the Non-Wealthy
“Courage can be developed. But it cannot be nurtured in an environment that eliminates all risks, all difficulty, all dangers. It takes considerable courage to work in an environment in which one is compensated according to one’s performance. Most affluent people have courage. What evidence supports this statement? Most affluent people in America are either business owners or employees who are paid on an incentive basis.” — Dr. Thomas Stanley
The problem with most people’s lives is that they are being shielded from the consequences of their behavior. There’s little to no accountability.
The fastest way to make success inevitable in your life is to only do work that is incentive-based. Only do that which you are rewarded and punished for the quality of your work. Everything you do needs to matter to the outcomes, consequences, and results you get in life.
So what is the decision?
One Decision Separates the Wealthy From the Non-Wealthy
“Courage can be developed. But it cannot be nurtured in an environment that eliminates all risks, all difficulty, all dangers. It takes considerable courage to work in an environment in which one is compensated according to one’s performance. Most affluent people have courage. What evidence supports this statement? Most affluent people in America are either business owners or employees who are paid on an incentive basis.” — Dr. Thomas Stanley
The problem with most people’s lives is that they are being shielded from the consequences of their behavior. There’s little to no accountability.
The fastest way to make success inevitable in your life is to only do work that is incentive-based. Only do that which you are rewarded and punished for the quality of your work. Everything you do needs to matter to the outcomes, consequences, and results you get in life.
So what is the decision?
The decision is to take complete ownership of every decision in your life. And how you do that is by only doing things in which you are compensated based on performance.
This goes completely against the norms in society. It goes against public education — which shields people from progressing at their own rates. It goes against most job structures, wherein a person is paid an hourly rate or salary.
If you want to make dramatic strides forward, you must only work in environments where the consequences of your actions are immediate and REAL. You need to be demanded by your situation to come up with a result.
This article will show you how:
Are You A Part Of The “Results Economy”?
Founder of the exclusive entrepreneurial coaching platform, Strategic Coach, Dan Sullivan distinguishes between those who are in the “Time-and-Effort Economy” with those who are in the “Results Economy.”
If you’re in the time and effort economy, you are focused on being busy. You actually believe the amount of time and energy you put into something merits praise. Those who are focused on being “busy” are protected in some way from the consequences of their actions.
They’re not being forced by necessity to come up with a solution. Chances are, they are an employee. They are part of a bureaucracy. And they’re striving to follow rules rather than break them.
Conversely, when you are in the results economy, you are only focused on achieving a specific result. You are focused on results because if you don’t get the result, there will be consequences to pay — for you and others.
You’re not worried about your reputation. You’re not worried about following the rules of ridiculous systems which are seeking to make you their slave anyways.
Dr. Thomas Stanley found in his research that those who are paid based on RESULTS are most courageous and also the most wealthy.
You actually have to take risks.
You can’t be sheltered from the consequences of your behavior.
To continue reading, please go to the original article here:
https://benjaminhardy.com/one-decision-separates-the-wealthy-from-the-non-wealthy/
Financial Slimming
.Financial Slimming
Jonathan Clements | Jun 5, 2022
I THINK SERIES I savings bonds are a great place to stash money you’ll need to spend in five or six years, and yet I’ve resisted buying. I’ve seen credit cards that offer more cash back than the cards I currently carry, but I haven’t taken the bait. The reason: My goal is to have fewer financial accounts, not more, even if it means fewer dollars in my pocket.
As I discussed in an article earlier this year, I’ve unloaded the jumble of investments in my three Roth accounts—which I plan to bequeath to my kids—and consolidated everything in a single fund, Vanguard Total World Stock Index Fund. That’s had an immediate payoff: Amid this year’s market turmoil, I haven’t bothered checking the performance or even looking at the account values.
Financial Slimming
Jonathan Clements | Jun 5, 2022
I THINK SERIES I savings bonds are a great place to stash money you’ll need to spend in five or six years, and yet I’ve resisted buying. I’ve seen credit cards that offer more cash back than the cards I currently carry, but I haven’t taken the bait. The reason: My goal is to have fewer financial accounts, not more, even if it means fewer dollars in my pocket.
As I discussed in an article earlier this year, I’ve unloaded the jumble of investments in my three Roth accounts—which I plan to bequeath to my kids—and consolidated everything in a single fund, Vanguard Total World Stock Index Fund. That’s had an immediate payoff: Amid this year’s market turmoil, I haven’t bothered checking the performance or even looking at the account values.
Since then, I’ve closed a checking account and a credit card, leaving me with three credit cards and two checking accounts—one personal, one business. I’ll likely ditch one of the three credit cards, leaving me with two. I’ll use one for everyday spending and keep the other as a backup, in case I lose my primary card or it gets hacked.
Next on my to-do list: cutting back the rewards programs that I use. Thanks to decades of business travel, I’m signed up for four frequent-flier programs and three hotel programs, plus I collect Amtrak rewards points.
To continue reading, please go to the original article here:
10 Genius Things Warren Buffett Says To Do With Your Money
.10 Genius Things Warren Buffett Says To Do With Your Money
Elyssa Kirkham Fri, June 3, 2022,
Warren Buffett is arguably the best-known, most-respected investor of all time. Buffett is also known for his folksy charm and his memorable quotes about the art of investing.
When you're aiming to reach the top of the mountain, it's usually wise to closely follow the footprints of those who have successfully made the climb before you. Your odds of investing success can increase exponentially if you learn and apply Buffett's best investing tips.
10 Genius Things Warren Buffett Says To Do With Your Money
Elyssa Kirkham Fri, June 3, 2022,
Warren Buffett is arguably the best-known, most-respected investor of all time. Buffett is also known for his folksy charm and his memorable quotes about the art of investing.
When you're aiming to reach the top of the mountain, it's usually wise to closely follow the footprints of those who have successfully made the climb before you. Your odds of investing success can increase exponentially if you learn and apply Buffett's best investing tips.
1. Never Lose Money
One of the most popular pieces of Buffett advice is as follows: "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." If you're working from a loss, it's that much harder to get back to where you started, let alone to earn gains.
2. Get High Value at a Low Price
In the 2008 Berkshire Hathaway shareholder letter, Buffett shared another key principle: "Price is what you pay; value is what you get." Losing money can happen when you pay a price that doesn't match the value you get -- such as when you pay high interest on credit card debt or spend on items you'll rarely use.
Instead, live modestly like Buffett by looking for opportunities to get more value at a lower price. "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down," Buffett wrote.
3. Form Healthy Money Habits
In a 2007 address at the University of Florida, Buffett said, "Most behavior is habitual, and they say that the chains of habit are too light to be felt until they are too heavy to be broken." Work on building positive money habits, and breaking those that hurt your wallet.
4. Avoid Debt, Especially Credit Card Debt
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/10-genius-things-warren-buffett-130115951.html
Five Freedoms
.Five Freedoms
Jonathan Clements | January 25, 2020
FOR THREE YEARS, I lived on Roosevelt Island, in the middle of New York City’s East River. It’s a wonderful place—a quiet, friendly, low-crime oasis in the middle of one of the world’s largest, most frenetic cities.
During my time there, the Franklin D. Roosevelt Four Freedoms Park opened on the island’s southern tip. The park is named after a 1941 FDR speech, where he articulated “four essential human freedoms”: freedom of speech, of worship, from fear and from want.
FDR’s speech was inspiring. Managing money is altogether more prosaic. Still, I’d argue that our pursuit of money is also about a hunger for freedom—with five dimensions:
Five Freedoms
Jonathan Clements | January 25, 2020
FOR THREE YEARS, I lived on Roosevelt Island, in the middle of New York City’s East River. It’s a wonderful place—a quiet, friendly, low-crime oasis in the middle of one of the world’s largest, most frenetic cities.
During my time there, the Franklin D. Roosevelt Four Freedoms Park opened on the island’s southern tip. The park is named after a 1941 FDR speech, where he articulated “four essential human freedoms”: freedom of speech, of worship, from fear and from want.
FDR’s speech was inspiring. Managing money is altogether more prosaic. Still, I’d argue that our pursuit of money is also about a hunger for freedom—with five dimensions:
1. Freedom from fear.
We all want a sense of financial security—and yet all too many folks lead fragile financial lives. If our income barely covers our expenses, we may be okay if it’s a typical month. But so few months turn out to be typical.
We face frequent financial shocks, some large, some small. The car breaks down. The roof needs to be replaced. We lose our job. If we have scant savings and little financial breathing room in our monthly budget, such shocks can leave us scrambling to cover the bills and send our anxiety soaring.
As I mentioned last week, a Consumer Financial Protection Bureau study found that the sum we keep in liquid savings—meaning cash, checking accounts and savings accounts—has a huge impact on financial well-being. The price to escape much of our financial fear? All it may take is a few thousand dollars tucked away in the bank.
2. Freedom from financial dependence.
We’re all dependent on other folks. Even billionaires need others to produce the goods and services they consume, to buy the investments they sell and to purchase the products their businesses make.
But there are degrees of financial dependence—and the more dependent we are, the shakier our financial life can seem. I don’t like being financially dependent on others, and I can’t imagine many do.
Don’t get me wrong: When the day comes, I won’t have any qualms about claiming my Social Security check. But I would never want to be entirely dependent on a government program, a charity or family members.
Even working for others strikes me as a form of financial dependence, though it’s one most of us can’t avoid. It’s terrible to feel our livelihood hinges on a capricious boss. True, if we’re unhappy, we can always take our labor elsewhere. But switching employers is a costly, anxiety-inducing business.
3. Freedom from financial obligations.
To continue reading, please go to the original article here:
Money Problems: Why They're All Your Fault -
.Money Problems: Why They're All Your Fault - By Tara Struyk
The truth can be a little uncomfortable - hard to swallow - and down right tough to deal with but in reality doing so always makes us a better person - It is much better and easier if we can make this awareness and acknowledgement on our own -- Maybe this article will be enlightening for you and assist you in making any helpful changes to improve your quality of life -
I love writing about money —not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
Money Problems: Why They're All Your Fault - By Tara Struyk
The truth can be a little uncomfortable - hard to swallow - and down right tough to deal with but in reality doing so always makes us a better person - It is much better and easier if we can make this awareness and acknowledgement on our own -- Maybe this article will be enlightening for you and assist you in making any helpful changes to improve your quality of life -
I love writing about money —not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
But that’s really what issues that surround money are all about, isn’t it? The way we behave with our money is a lot like many other things in life — we know what we should do, but that hardly means we actually do it.
We know we should exercise, avoid fast food, and eat more vegetables just like we know we should spend less, avoid debt, and save more of our money. Most of us struggle with both, at least sometimes.
The key to solving money problems, then, often isn’t about outside factors (like making more money). Instead, it’s about our own habits and behaviors. (See also: Party Like It's $19.99: The Psychology of Pricing)
So how can we make better choices when it comes to money? First, I think, we need to accept that our money problems are (usually) all our own fault. Then, it’s time to stop relying on self discipline and develop habits that put bad choices out of reach.
What’s the Problem?
I think the key to unraveling any money problem is to first accept that the problem is probably an emotional one.
Just think about some of the money problems people tend to get into. Debt is one of the most obvious, and if you’ve ever watched Suze Orman or Dave Ramsay or Oprah address this, it’s pretty clear that debt goes much deeper than just a frivolous desire to acquire more.
For some people, a desire to give their kids all the things they never had growing up makes it impossible for them to say “no.” For others, a financial setback has them feeling too ashamed to admit they can no longer afford the lifestyle they’re used to.
And far too many people feel important, triumphant — even happy — when they come home from the mall with an armload of new purchases — whether they can afford them or not.
To continue reading, please go to the original article here:
http://www.wisebread.com/your-money-problems-why-theyre-all-your-fault
Money Problems: Why They're All Your Fault
.Money Problems: Why They're All Your Fault
By Tara Struyk
I love writing about money — not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
Money Problems: Why They're All Your Fault
By Tara Struyk
I love writing about money — not because I’m obsessed with wealth (or my relative lack thereof), but because I think the way we spend our money reflects who we are, good or bad. That’s probably why I bought the very first condo I saw. I’m known to be impatient, impulsive even, in just about all things.
Was it a mistake? So far so good, but I left a lot more to fate than is probably wise in a six-figure purchase. And let’s just say that I hope to exercise a little more self control next time. Of course, whether it’ll actually work out that way is another story altogether.
But that’s really what issues that surround money are all about, isn’t it? The way we behave with our money is a lot like many other things in life — we know what we should do, but that hardly means we actually do it.
We know we should exercise, avoid fast food, and eat more vegetables just like we know we should spend less, avoid debt, and save more of our money. Most of us struggle with both, at least sometimes.
The key to solving money problems, then, often isn’t about outside factors (like making more money). Instead, it’s about our own habits and behaviors. (See also: Party Like It's $19.99: The Psychology of Pricing)
So how can we make better choices when it comes to money? First, I think, we need to accept that our money problems are (usually) all our own fault. Then, it’s time to stop relying on self discipline and develop habits that put bad choices out of reach.
What’s the Problem?
I think the key to unraveling any money problem is to first accept that the problem is probably an emotional one.
Just think about some of the money problems people tend to get into. Debt is one of the most obvious, and if you’ve ever watched Suze Orman or Dave Ramsay or Oprah address this, it’s pretty clear that debt goes much deeper than just a frivolous desire to acquire more.
For some people, a desire to give their kids all the things they never had growing up makes it impossible for them to say “no.” For others, a financial setback has them feeling too ashamed to admit they can no longer afford the lifestyle they’re used to.
And far too many people feel important, triumphant — even happy — when they come home from the mall with an armload of new purchases — whether they can afford them or not.
To continue reading, please go to the original article here:
http://www.wisebread.com/your-money-problems-why-theyre-all-your-fault
7 Money Skills You Still Have Time To Learn
.7 Money Skills You Still Have Time To Learn
Heather Taylor Tue, May 31, 2022,
No matter what age you are, there are basic money skills that will always be beneficial in your life.
From spending less than what you make to determining the best way to pay off your debt, these skills can increase your overall financial literacy and create a healthy relationship with money.
Budgeting
Budgeting is often considered the cornerstone of personal finance advice. Amy Maliga, financial educator at Take Charge America, said it's never too late to get in the habit of planning and following a budget.
7 Money Skills You Still Have Time To Learn
Heather Taylor Tue, May 31, 2022
No matter what age you are, there are basic money skills that will always be beneficial in your life.
From spending less than what you make to determining the best way to pay off your debt, these skills can increase your overall financial literacy and create a healthy relationship with money.
Budgeting
Budgeting is often considered the cornerstone of personal finance advice. Amy Maliga, financial educator at Take Charge America, said it's never too late to get in the habit of planning and following a budget.
Creating a budget allows you to figure out how much money you have coming in every month and the source of this income. Once you know how much money is coming in, you can start tracking and figuring out your expenses. Keep an eye out for fixed expenses (expenses that stay the same every month like rent or a mortgage), variable expenses (expenses that change each month such as groceries or utilities) and periodic expenses (expenses that happen once a year like back-to-school shopping).
Tracking expenses through a budget allows you to see the areas where you may be spending too much money and where there may be opportunities for saving or investing your money. You may also strategize how you can live within your means and plan for the future with the help of a budget. Maliga said that understanding exactly how much money you have coming in, going out and where it's going is the cornerstone of effective money management.
Wise Spending Habits
It's never too late to learn about spending. From reducing everyday expenditures to embracing a passive saving mindset, wise spending habits are a key component of financial literacy.
Britt Williams Baker, co-founder of Dow Janes, said a money skill many underestimate is the importance of learning to spend less than what you make.
"Whether you're 25 or 55, if you still spend more than you make each month, you'll never be able to save. And until you start to save, you can't do anything else -- like invest, buy a house, or build wealth," Williams Baker said.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/7-money-skills-still-time-150001613.html
6 Common Excuses for Not Saving Money
.6 Common Excuses for Not Saving Money By Tara Struyk
Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money.
In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice.
6 Common Excuses for Not Saving Money By Tara Struyk
Have you ever settled on a new exercise program, only to get a bad cold a few days in and happily throw yourself on the couch, relieved to have a handy excuse? Excuses must be human nature; I know I usually make them when I'm facing something that’s new, that's hard, or that I just don’t enjoy. And I’ve certainly made excuses when it comes to money.
In the years that I’ve been writing about personal finance and investing, I’ve also heard my fair share of excuses, mostly from readers who don’t agree with my advice.
The problem is, unlike good financial habits, excuses are easy to come by, even though most of them just don’t stand up to reason. Check out some of the ones I’ve heard most frequently so far.
Excuse: “I don’t make enough to save money.”
This may be true for some people, especially in this economy, but not having any money left at the end of the month doesn’t necessarily mean you can’t afford to save.
After all, most people spend money on a number of unnecessary things each month, such as restaurant meals, impulse buys, and cable TV. Finding some money for saving doesn’t have to mean voluntarily living in a dark, unheated room without any entertainment or luxuries, but if you’ve declared your budget too tight to put money aside before even looking for ways to reduce your spending, you’re making an excuse.
Excuse: “Interest rates are too low to bother with.”
Interest rates are at an all-time low right now, and that does make putting money into a savings account a little, well, disheartening. However, it’s likely that many of our grandparents — and certainly our great-grandparents — may have gone years without using a bank at all. Now that banks provide a safe place to park your cash, they pay interest in return for holding your money.
Interest is a great way to grow your savings, but even if you get almost nothing, at least you have some cash when you need it. Plus, if you’re able to put enough away, you can always look into investments with the potential for higher returns, such as stocks and mutual funds.
Excuse: “I have too much debt to put money into savings.”
If you have a lot of debt, it’s important to focus some serious effort into getting rid of it. But that doesn't mean that every bit of money you can spare should go straight to your creditors. In fact, it’s more important than ever to save when you’re in debt because it can help you avoid digging yourself in deeper.
If you don't at least have a small emergency fund, you'll be forced to pull out your credit card when unexpected expenses — such as a car repair — inevitably arise.
Excuse: “I’ll catch up later when my salary is higher.”
To continue reading, please go to the original article here:
https://www.wisebread.com/6-common-excuses-for-not-saving-money?wbref=readmore-2
Is It More Important To Be Rich Or Happy?
.Is It More Important To Be Rich Or Happy? By JD Roth
Sometimes we in the United States forget how privileged we are. Because of our relative wealth, we can make claims like “it’s more important to be happy than it is to be rich”. In this guest post, Saravanan P of Engineer’s Finance argues that for the poor, money is more important than happiness.
Though this post has been heavily edited, keep in mind that English is not Saravanan’s native language.
Being happy is a state of mind and heart that does not matter whether we are rich or poor. But we can only make statements like “It’s more important to be happy than it is to be rich” when we are rich and not poor.
Is It More Important To Be Rich Or Happy? By JD Roth
Sometimes we in the United States forget how privileged we are. Because of our relative wealth, we can make claims like “it’s more important to be happy than it is to be rich”. In this guest post, Saravanan P of Engineer’s Finance argues that for the poor, money is more important than happiness.
Though this post has been heavily edited, keep in mind that English is not Saravanan’s native language.
Being happy is a state of mind and heart that does not matter whether we are rich or poor. But we can only make statements like “It’s more important to be happy than it is to be rich” when we are rich and not poor.
Being rich always gives us the power to do things at the time we want. In short, it gives us freedom.
Sometimes I think I know just what it means to have money more than Americans do. I have seen people here in India struggle to earn two to three dollars a day working for more than 12 hours. It’s hard, but still people do it.
If we were to ask these people whether they are happy, they would say they are, but are they really? They assume they’re happy and move on with the life. For them happiness is merely having their bread and butter.
If you are poor, you yearn for food and nothing else — money matters more than happiness because without the minimum of money, you don’t eat. After you are rich, you tend to say that happiness is more important because your basics are already met. In fact, perhaps most rich people cannot even imagine a life in which the basics may be out of reach on any given day.
Many people argue that being rich is not as important as being happy. I just have two questions for people who say this:
When you are in hunger, can you think of being happy?
When you can’t keep yourself warm during winter, can you think of being happy?
Until you satisfy your basic needs, you can’t think of happiness. Forget about being happy. Once your basic necessities are met and you start living (not surviving), only then does happiness surface.
To continue reading, please go to the original article here:
https://www.getrichslowly.org/is-it-more-important-to-be-rich-or-to-be-happy/
Seven Financial Influencers On Saving, Inflation, And Starting Your Own Business
.Seven Financial Influencers On Saving, Inflation, And Starting Your Own Business
Benjamin Din + Meghan Coyle + Rosalie Murphy May 18, 2022
Amid stagnating wages and rising prices, the financial pros will tell you the same thing: You can’t keep saving and spending the same way you always have if you want to keep up. There are plenty of things you can do to combat some of the biggest issues facing consumers today.
Here’s what some Asian and Pacific Islander financial pros suggest for how to beat inflation, save at the pump and maybe even take the plunge if you’re considering starting your own business.
Seven Financial Influencers On Saving, Inflation, And Starting Your Own Business
Benjamin Din + Meghan Coyle + Rosalie Murphy May 18, 2022
Amid stagnating wages and rising prices, the financial pros will tell you the same thing: You can’t keep saving and spending the same way you always have if you want to keep up. There are plenty of things you can do to combat some of the biggest issues facing consumers today.
Here’s what some Asian and Pacific Islander financial pros suggest for how to beat inflation, save at the pump and maybe even take the plunge if you’re considering starting your own business.
1. Hui-chin Chen
Inflation has risen 8.5% over the last 12 months, according to the U.S. Department of Labor and Statistics. To combat inflation, Hui-chin Chen, a certified financial planner who runs the Money Matters for Globetrotters blog, recommends focusing on the income and expenses you can control.
“Inflation manifests in our lives through having to spend more to maintain the same lifestyle. That means there are only two things anyone can do to cope — make more or change lifestyle.
“During the time of Great Resignation, the workers who have the drive and ability to earn that higher return of capital will be better poised to face longer-term inflation.
“Changing lifestyle doesn’t mean we need to give up what is important to us or even live a lower quality of life. It requires first taking stock on what part of your spending is inflated outside of your control, and taking control on the part you can.
“For example, those with fixed-rate mortgages will not see a huge jump on housing cost, but those renting might. On the other hand, those who are location independent can seek greener pastures more easily for lower cost of living than those tied down by a job or house.”
More about Hui-chin Chen: Chen is a CFP and the principal of Pavlov Financial Planning. She is an immigrant and expat, and is passionate about making cross-border financial planning accessible and does so through her founding of the CIGA Network and her blog, Money Matters for Globetrotters. Twitter: @huichinfp
"So much more thorough and easier to manipulate than the 'plan' created for me by my advisor. When something changes in my life or my thinking, bingo! I just change assumptions and make sure I still live longer than my money!" – Eric, 56
2. Vivian Tu
Vivian Tu, better known as “Your Rich BFF” on TikTok, said everything we’re used to buying is going up — milk, cars, travel. Think about that when annual raises come up at work.
To continue reading, please go to the original article here:
10 Ways To Build Wealth Fast
.10 Ways To Build Wealth Fast
But it will still take some time and effort.
By John Csiszar May 17, 2022 Build Your Wealth
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.
Ironically, the best way to build wealth “fast” is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.
10 Ways To Build Wealth Fast
But it will still take some time and effort.
By John Csiszar May 17, 2022 Build Your Wealth
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.
Ironically, the best way to build wealth “fast” is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.
Save
You can’t begin any type of wealth-generation plan without having money to invest. As soon as you start drawing an income, make it your top priority to save as much money as you can. One strategy often recommended by advisors is to “pay yourself first,” meaning put money in savings immediately when you receive your paycheck, even before you pay your bills. This type of “forced savings” will require you to trim your discretionary spending but will also result in rapidly growing wealth.
Buy an S&P 500 Index Fund
The S&P 500 index doesn’t guarantee profits, but it’s proven itself time and time again to be a tremendous generator of long-term wealth. In fact, most investors are surprised to learn that the “risky” stock market has never lost money over any 20-year rolling period. And yet, the long-term average return of the S&P 500 is north of 10%. This means the S&P 500 index has a tremendous risk/reward profile over the long run. Even legendary investor Warren Buffett, the “Oracle of Omaha” himself, has directed his trustee to keep 90% of his money in an S&P 500 index fund after he passes.
Buy Dividend-Paying Stocks
Dividend-paying stocks may seem like a slow and boring way to build wealth, but they are one of the best ways to tap into a solid and growing source of income, and capital gains as well. The so-called “Dividend Aristocrats” are large, well-known companies in the S&P 500 index, like Coca-Cola and McDonald’s, that have raised their dividends for at least 25 years in a row. This means that those who bought these companies 25 years ago are earning huge effective yields on their original investment amount. Combined with the potential for capital gains, the Dividend Aristocrats can be a great way to build wealth.
Buy a Rental Property
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