![]() Cancel your cable package and switch over to a cheaper streaming service.Pack your lunch instead of eating out with your work buddies every day.Here are some quick ways you can save some money in your monthly budget: Whether you’re using an app like EveryDollar or an old-fashioned spreadsheet, a budget will help you stay on track with your spending and show you where to cut down your expenses so you can save more for retirement. If you find yourself struggling to get to that 15% mark, take a closer look at your monthly budget. If you follow the Baby Steps, you’ll build wealth and get to live and give like no one else.Īnd second, investing 15% still leaves some wiggle room in your budget to reach other important financial goals-like saving for your kids’ college funds and paying off your house early. Why 15%? First of all, investing 15% of your income consistently month after month, year after year, will put you on the path to becoming a Baby Steps Millionaire thanks to time and compound growth doing its thing. Once you reach Baby Step 4, you can start saving and investing 15% of your gross household income for retirement. Learning to invest doesn’t have to be complicated! Here are five simple steps to help you get started.ġ. Make Room in Your Budget for Investing ![]() They were able to pay off all their debt and reach a million-dollar net worth in about 20 years. In fact, there’s a whole group of millionaires called Baby Steps Millionaires who’ve followed the 7 Baby Steps to hit the million-dollar mark. By building a debt-free foundation and stashing a good chunk of savings in the bank, you’re setting yourself up to invest your income to build wealth the right way. It’s like trying to fill a bucket with water when there’s a hole on the bottom-it just doesn’t work. And as long as it’s tied up in monthly debt payments, you can’t build wealth. Your income is your most important wealth-building tool. That means saving $1,000 for a starter emergency fund, paying off all your debt except your mortgage using the debt snowball method, and then saving a fully funded emergency fund of 3–6 months of expenses. Before you start investing, you need to work your way through the first three of Ramsey’s 7 Baby Steps. Anyone can invest-including you. And it’s okay if you have a ton of questions.įirst thing’s first. Starting anything new can be intimidating-especially when it’s something that can have long-term effects on your finances-but don’t give up. So, how do you start investing? It’s not as complicated as you might think, and we’ll guide you through the process. ![]() Simply put, the best way to get rich quick is to get rich slow. It sounds like easy money, and you fear you’re missing out.īut before you start buying stocks willy-nilly, hear us out: Diligently investing your money, little by little over time, is where real, lasting wealth comes from. Maybe a friend or coworker told you about how they hit it big investing in stocks. ![]()
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