Smart Thinking On Investing – October 21
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
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
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
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
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
Do you want to start investing on your own, but don’t know how?
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