Best Advice We Can Give
There are many ways to save money. By setting attainable goals for yourself, both in the short-term and long-term and maintaining discipline, you put yourself in the best position to grow yourself over time. Taking the time to plan for your financial future is the first step to understanding what you would need to do to reach your financial goals. Here is the best advice we can give if you want to create long-term wealth.
- Make Savings Automatic! Making your savings automatic is a great way to grow your savings! Setting up an automatic transfer from your checking account to a savings account will help you quickly accumulate savings. The same can be said for investments – making an automatic contribution to your 401(k) or a Roth IRA can help you start investing, and more importantly, to be consistent with it since it doesn’t require to you remember to make your contribution each month!
- Take the Free Money! In many cases, employers who offer full-time benefits will make contributions to employees 401(k)s or retirement plans as a benefit of employment. This is money your employer is contributing for you – think of it as receiving free money from your employer. Make sure to contribute the amount needed to your 401(k) to receive the maximum match contribution from your employer.
- Time and Patience are your Friends! Warren Buffet, one of the greatest investors of all-time has a net worth of $84.5 billion. Did you know that of his entire net worth, $84.2 billion was accumulated after he turned 50? While a very smart investor, Buffet is also incredibly patient, and his willingness to invest for the long-term is one of the reasons he has developed such great wealth. When it comes to investing and creating long-term wealth, time in the market is much more important (and valuable) than timing the market!
Saving and investing can seem extremely daunting when you’re looking to start. Keep in mind that small, simple steps like automatic savings, taking advantage of employer matching contributions, and starting early can make a world of difference. Small, consistent, repeated actions can be the key to generating long-term wealth!