In the final video of the March vido series, I present a video that is straight and to the point. If you have never read Thomas Stanley’s The Millionaire Next Door, then I highly suggest you do. Mr. Stanley discusses this exact point the video outlines in his book. Simply put, the people you think are rich most of the time are not. The people who appear not to have money, most of the time do.
I hope you enjoyed this month’s long video series.
We’ve heard it time and time again from arguably the best investor of all time. Warren Buffett has simple advice on how Americans should invest. You can try to beat the market, and some of your investments might do just that. Most, probably not. Heed Warren’s advice.
From one king (of investing) to another king (of the court) the way to build wealth is simple. Own America, invest in a low-cost index fund, invest regularly, and give it time.
The power of compounding interest is a magical tool. Your growth potential is exponential. Nowadays, we are living longer than ever before. With longer life spans, we now have more time than ever to watch are money grow. When it comes to compound interest, time is key.
I first started investing with a broker and dividends from my portfolio holdings would just be placed into a cash account where I would eventually buy something else when enough money accumulated. Now, I index invest, and all of my dividends and earnings are automatically invested into my holdings.
I invested with a broker for two years. That time I lost on allowing my money to compound might not seem like much, but it will eventually equate to the loss of thousands down the road. Let your money compound and live off of your interest in retirement; until then, let it be.
Today’s video is one that is almost two years old; however, the facts provided and insights suggested are timeless. I honestly believe that the majority of people who follow my blog are in a better financial position than 90% of people throughout the world. It is mind boggling to see how some do struggle. We get caught up in a spend spend spend trend that we forget how important it is to save save save. Maybe you know someone who isn’t in as good of a financial position as yourself. Help teach them responsible personal finance and don’t let him or her become another statistic.
We all have the ability to rummage through our monthly budget and find ways to cut our expenses. Going out to eat lunch instead of bringing your own lunch, paying full price for items while shopping, not renegotiating your cable bill after the introductory price expires. There are at least three categories we can all eliminate $20 a month from in our budget. Doing so will create an extra $720 a year that you can use towards retirement or a future savings goal. Today’s video focuses on a few areas where spending can be cut, but I challange you to find a few others and start saving more.
Many of us struggle with our finances, especially our debt. Today’s video talks about a specific method one can use to not only limit your debt, but also a proactive approach to tackling your balance.
Whether your debt is from credit cards, student loans, a car payment or a home, debt is a financial black hole that sooner or later you WILL have to dig yourself out of. Check out today’s video and find the best way to manage and limit your own debt.
In Part II of the video series, we will talk about just how one should start a Roth IRA. Roth IRA’s are an essential tool to have when it comes to retirement planning. The money you place into your Roth IRA and the earnings that accumulate over time are never taxed. When you reach your retirement years, 401k’s, pensions and social security are all taxed. This is why it is important to have a non-taxed account to supplement your retirement years. Ramit explains Roth IRA’s below and where you can begin funding your very own account.
Throughout the month of March, I will be highlighting a video series. I will be including videos from YouTube that highlight different aspects of the financial journey. As I have discussed in previous posts. The financial journey to wealth is a long one with various pieces. Today’s video highlights budgeting. These videos will be short and to the point. I hope they provide an alternative method to providing information on the financial journey process.