Paring it all down, we've come up with seven steps to becoming wealthy.
Remember, wealth is relative, it doesn't necessarily mean "millionaire." The goal
for many people is financial independence, says Stewart Welch of The Welch
goal; it's the whole thing -- the dream, the goals, the options. The options are scenario planning -- all the ways you can accomplish that goal -- open a Roth IRA, contribute to a 401(k).
The end result of your financial plan should be systematic investment. Get in
the habit of saving money. Build an emergency fund in a money market account
so you don't have to raid the rest of your savings and investments when there's
an unexpected major expense. Make it a point to save at least half of every pay
one gave you money to borrow, you'd be better off and the economy would be smaller. If they only let you borrow 75 percent of the value of your home, you'd be a heck of a lot better off.
Open an account with a mutual fund company that has no-load funds and
low expense ratios. Build a diverse portfolio and you can reasonably expect to
earn 8 percent to 10 percent annually on your investments over the long haul.
actively involved in the day-to-day management of their financial affairs,"
notes Zultowski. "They get involved; they learn about finances, they're not day
traders. They work with advisers but ultimately make their own decisions." If
you can't afford to have a financial planner manage your money, many of them
will review your portfolio and make recommendations for a one-time fee.
By using some of the available resources mentioned above, you should be able to calculate
(using the software on these sites) the amount of money that you need tosave each month to
reach the right income levels you need to retire.
you do have the cash available to pay them off monthly. If you are paying them (totally) off
each month, then you are reallyno t falling into extensive debt, and you are managing your credit
use wisely. Credit becomes an issue when you are not able to pay these types of account off
Set up your financial plan for the future, and determine exactly how much you should be saving
and investing each month- this makes your money grow while you are getting nearer to
retirement. If you are having problems in knowing what to invest in, then surely get financial
investment advice from a CPA, or certified financial planner.CPA\u2019s generally should be able
For younger people I highly recommend starting a business while they are young. Of course
the indicators show that many businesses fail within 3-5 years, so you should research this
venture very well \u2013 including getting free advice from a local SCORE chapter, or Small
owner. It\u2019s my guess that buying into an existing business (like a franchise) that is doing very well might just be much easier than going into a start-up business. Again, the home based business industry may provide you with some business skills- but I challenge you to really think seriously about getting involved in a larger real business that has some track record for
and also build a management team or advisory team that you will be able to work with so they
can provide their knowledge, skills, and advice during the start-up & business development
processes. Read up on the available literature that shows the risks associated with start-ups
This action might not be possible to undo. Are you sure you want to continue?