7 Rules for Amassing Wealth
A good financial strategy is what you need to amass wealth, not exactly a large, six-figure salary. You can ensure a solid financial future if you plan ahead, form healthy spending habits, and commit to saving money. Follow the rules below and live comfortably in the future with a large nest egg that you can start building today.
1. Choose the right life partner.
You can reach your financial goals faster if they are shared by your partner. Two people can work to achieve them, instead of just one. Having the same priorities will help keep you on track and also give you the support you need to stay motivated and disciplined.
2. Aim to be debt-free.
Good debt is still debt. Paying interest for years can seriously limit your ability to amass wealth. Work to be debt-free as soon as possible. Resist the urge to keep up with the Joneses and charge only what you can afford to pay in full on your credit card. Overreaching can keep you in debt for years and this will cost thousands of interest that you can otherwise save and enjoy for yourself.
3. Change the way you look at money.
Your upbringing plays a role in how you manage money. To put it simply, if you do not like where your parents were financially at your age, make different, conscious choices for yourself and your family. Figure out what money represents to you and get more insight into how you spend, save, and earn. Poor financial choices will hold you back and stop you from amassing wealth early on.
4. Contribute to your retirement plan.
Actually, do not just contribute – max out your contributions to retirement accounts each year! Make this a priority, especially if you are young. Take a 401(k) plan from your employer and have a Roth IRA on top of that. Make wise money decisions today and take care of yourself in the future!
5. Live below your means.
You survived and had plenty of fun when you were a poor college student. Continue to live below your means now and put more money into your savings and investments. You will earn more in compound interest and free yourself from debilitating debt, too.
6. Fund your retirement before your children’s college funds.
There is no guarantee that your children will want to attend college. What is certain is that you will retire soon. Ideally, you can save both for retirement and college. But if you need to prioritize one, put retirement funds first over saving for college.
7. Withdraw social security as late as possible.
If you delay your claim until age 66, you will receive 100% of your social security benefit. Delay it until age 70 and even receive a bonus. In total, you will get 132% of your benefits, which is a fantastic way to amass wealth.