Week 3: Open 2 Investing Accounts - Deepstash

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Week 3: Open 2 Investing Accounts

Week 3: Open 2 Investing Accounts

Open:

  • a 401(K) account
  • a regular investment account.

Next:

  • If your employer offers a 401(k) match, invest to take full advantage of it. Contribute enough to get 100 percent of the match.
  • Pay off debts. This give you a significant instant return.
  • Open a Roth IRA. Contribute as much money as possible. Check the IRS website for current maximum income levels.
  • Money left over? Go back to your 401(k). Max this out.
  • Money left over? Open a regular non-retirement account. Invest as much as possible.

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Anyone Can Become Rich

Anyone Can Become Rich

This is the main premise of the best selling book by Ramit Sethi. He structures his ideas into 4 buckets: 

  1. Track your spending. This will help you see where your money is going and identify areas where you can cut back.
  2. Set financial goals

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Week 5: Automate Everything

Week 5: Automate Everything

Use this schedule to help you set up your own automation:

If you’re paid on the 1st of the month. Switch all bills to arrive on or around that time, too.

  • 5th of the month. Set up an automatic transfer to your savings account and to your Roth IRA.
  • ...

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Your Six Week Plan To Become Rich

Your Six Week Plan To Become Rich

Do this to get on a path to becoming rich:

  1. Optimize Your Credit Cards
  2. Open high-interest, low-maintenance bank accounts
  3. Open Investing Accounts
  4. Start Your Conscious Spending Plan

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Week 4: Start Your Conscious Spending Plan

Week 4: Start Your Conscious Spending Plan

Use a tracking tool to see where your money is going. (e.g. Mint) Don’t just go and “create a budget”.

Choose the things you love enough to spend on— and then cut costs on the things you don’t love. This leads to a happy, rich life, not living a life of frugality for no rea...

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Week 6: Start Investing

Week 6: Start Investing

Invest in index funds not individual stocks. Put your own behavioral psychology to work here. Invest automatically and over long periods of time.

Once you’ve covered the basics (aka index funds), allocate 5-7% of your income to “mental outlets.” This is money for you to inv...

835

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Week 2: Open high-interest, low-maintenance bank accounts

Week 2: Open high-interest, low-maintenance bank accounts

Open a no-fee online bank account (e.g. Ally, Capital One). Avoid brick n’ mortars banks

The problem with brick n’ mortar banks (e.g. Bank of America) is they need minimum balances to avoid fees. For example, Bank of America’s “free” checking account requires a minimum $1,5...

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Week 1: Optimize Your Credit Cards

Week 1: Optimize Your Credit Cards

A great place to start because it can have a big impact on your finances:

  • Set up autopay to pay your CC bills
  • Call to waive any past credit card fees
  • Negotiate a lower APR
  • Build credit history by keeping credit lines open
  • Increased your credit allowance

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RAMIT SETHI

“Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.”

RAMIT SETHI

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4 Life-Changing Ideas About Money

4 Life-Changing Ideas About Money

Ramit Sethi lists his favourite approaches to money:

  1. Behavior trumps information. Knowing the perfect right answer is less important than taking action. Focus on small, innocuous behaviors. Like saving small every month.
  2. Focus on getting things 85% righ...

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CURATED FROM

CURATED BY

val_q

"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." ~ Warren Buffett

The book behind the Netflix show

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Tax-advantaged accounts can help

You can take advantage of the tax-sheltered retirement accounts like 401(k)s and IRAs.

  • If you qualify for a Roth IRA, use it. The Roth IRA will come back to you tax-free when you're older.
  • If you contribute to a 401(k) account, at least 5 percent will be matched from your e...

How to Save Right for Retirement

How to Save Right for Retirement

  • Start Saving ASAP. Money you put in your retirement fund now will have more time to grow through compound growth.
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  • Contribute mo...

Taxes and investments

Three essentials for successful investing: Invest in things you understand with low fees and minimal taxes.

Taxes can take a massive chunk of your investments' future earnings, so minimize their impact as much as possible. With long-term ...

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