Smart Thinking On Investing – October 21

Smart Thinking On Investing – October 21

I wanted to kick off this week’s Smart Thinking with The Financial Diet’s Holly Trantham’s shrewd observations on what she could have spent her takeout spendings of 2016 on instead. Julie of Millennial Boss admits that 401(k)s, IRAs, and HSAs are dull, but they will turn you into a millionaire if invested in correctly. And Catherine Alford, writing for Frugal Rules, warns us what not to spend our money on.
 
The Guardian’s Suzanne Mcgee believes that all millennials have the potential to become millionaires if they invest now. And Greg Johnson from Club Thrifty shares some insights into staying within budget when you’re broke…
 

What You Could Do Instead of Spending on Takeaway Food

 

  • Food delivery is always tempting; it saves you time and energy, but look back at your spending and work out how much you’ve spent on this service alone
  • If it’s up there in the hundreds of dollars mark; think of the flight ticket and entertainment expenses you could have spent that on or the savings you could have made instead
  • Convenience is all well and good but keep these potential savings in the back of your mind to help curb the temptation in the future

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The Smart Way to Become a Millionaire

 

  • The first goal on route to becoming a millionaire is to max out your retirement accounts; these include your 401 (k) and IRA
  • Open a brokerage account; this is just an investment account funded from your own money to enable you to invest in stocks and funds
  • Move money into a Health Savings Account and max that, and start an emergency fund in a High Interest Savings Account too
  • Be smart about your savings; aim to set aside 50% of your salary to get the most out of your income

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Never Should You Ever…

 

    • …buy anything with 0% finance—save up instead to buy what you want outright
    • …buy a brand new car—the value depreciates as soon as you drive it off the forecourt; buy higher mileage cars instead to save money
    • …go retail therapy shopping—try not to tie your emotions up with shopping; it’s a bad habit to get into and won’t fix the root of the problem
    • …put your retirement savings on the backburner—be proactive about your long term investment plan now!

Think these are negotiable? Share your comments in the section below

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Millennials; Begin to Identify as Investors

 

  • Only 37% of the millennial generation have any kind of financial plan in place, and the number living at home with their parents has risen to 21% from 14% in two years
  • Switch the saving attitude and convert to an investing one; there won’t be chance for a do-over when it’s too late
  • Work out whether it’s your head or your heart holding you back and break free to kick start investing now for your retirement

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Break the Endless Loop of Playing Catch-Up With Your Finances

 

  • It’s difficult to stay in budget when you experience any kind of financial hiccup or emergency without feeling totally derailed and stuck in a cycle of debt catch-up
  • Identify any leaks in your budget; if your expenses are larger than your income it’s time to work out where to make strict cutbacks
  • The next part is the hardest; set your sights on creating an emergency fund and don’t relax until you’ve achieved it—severe immediate saving for a future financial cushion

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Do you want to start investing on your own, but don’t know how?

Check this out!

 

Anything you would like to discuss about Smart Thinking On Investing? Do you have any articles you would like me to cover? Feel free to add it below. Let’s start a discussion in the comments section!

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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.

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