Create a roadmap to increase your chances of achieving your financial goals.
It might be worth it to work with a financial adviser to set specific goals and have a plan in place.
MORE IDEAS FROM 7 signs you're building wealth faster than you think
Never keep more than you need in cash or in a checking account.
Grow your money in the short-term by storing it in a high-yield savings account or certificate of deposit.
... but your spending hasn't changed.
Increasing your earnings is a form of leverage, whether you scored a raise, landed a better-paying job, or created a second or third income stream.
Check on your asset allocation periodically to ensure it matches your overall risk tolerance. Do not obsess over the details that could lead to emotion-fueled mistakes.
If you can afford to put the full $19,000 into your 401(k) this year,
Focus on the 5-10 Big Wins, rather than 50 little things.
For example, paying down debt, saving automatically, negotiating a higher salary, and investing early will have a much greater impact than forgoing your morning coffee.
Consumer debt kills wealth.
The average credit card charges an APR of 17% while the stock market returns an average of 7% to 8% each year, adjusted for inflation.
Formal education, practical experience in your field and doing a good job is important to earn a high income.
Most professionals see their incomes increase over time. If you can gain high earnings at an early stage, you’re likely to make even more later on.
As the chart shows, if you want to build wealth, there are really only two things to get right:
This chart shows you exactly how much you need to save, and the rate you need to compound it at, in order to reach your goals!
Know your income, your expenses, how much is earmarked for additional expenses and how much for other financial goals.
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