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Four Steps To Building Wealth

Four Steps To Building Wealth

  1. Don’t Be a Consumerist: keep your expenses as low as possible without sacrificing the quality of life. Spend money on things that yield lasting benefits.
  2. Have An Emergency Fund: this gives you freedom and peace of mind to deal with issues without having to upset your long-term investments.
  3. Invest Defensively: investing in individual stocks is a dangerous business and it can take your peace of mind. Index funds let you invest in a whole group of companies, bonds, etc. without the time and risk involved in individual stocks.
  4. Diversify Income: relying on a single source of income is a dangerous strategy. Multiple sources will make you more financially resilient and give you the resources to acquire assets and invest.

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“Money isn’t making that much difference in how you and I live. We’re both going down to the cafeteria for lunch and working every day and having a good time. So don’t worry about money, because it won’t make much difference in how you live.”

BENJAMIN GRAHAM - WARREN BUFFETT’S MENTOR

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"Money does not guarantee success." ~ Jose Mourinho

MORE LIKE THIS

What is an Index Fund?

What is an Index Fund?

An index fund is an investment that tracks a market index, typically made up of stocks or bonds.

Index funds typically invest in all the components that are included in the index they track, and they have fund managers whose job it is to make sure that the index fund performs the same as t...

Building a budget

  • The traditional budget starts with tracking expenses, getting rid of debt, and then building an emergency fund.
  • But you can speed up the process by building a partial emergency fund. It will act as a buffer to replace the use of a credit card for e...

Short-Term (1-5 years) Investing Strategy

For short-term investing, keep your money in a bond fund like the Vanguard Total Bond Market Index Fund or a certificate of deposit (DC) at your local bank.

If you are willing to take on a bit more risk, put your money in a balanced index fund like the Vanguard Wellesley Income Fund, which...

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