Getting rich isn't everything. But if it's your goal right now, there are rules to making it happen.
More importantly, there are silly mistakes that you need to avoid making.
Even then, it’s not going to happen overnight. Well, it might, if you have that winning lottery ticket. But if you are like the other 99.99999% of us, you have to work for every penny you deposit. And let’s face it, you want lots of pennies.
But getting rich isn’t as simple as “Click here now.” If it were, everyone would be rich. But these are obvious mistakes you can't afford to make:
1. You’re Not Frugal Enough.
Overspending is no fun at the end of the month when you are looking over your budget, but never spending can lead to boredom. And just like dieting, when you deprive yourself of something you’ve always had, you end up caving and binging.
Sure, when you’re on a diet you end up with a stomach ache, chocolate lips, and a small case of self-loathing. But when it’s money and you’re binge shopping, that can lead to so many other problems.
Go back to the good ole slush fund days and give yourself a “fun” budget. That way you can still do the things you love — within reason.
2. You’re Trying to Keep Up With the Joneses.
We’ve all done it. We need the newest and finest toys and tools regardless of cost or interest rate. Why? Because we need what everyone else has. We need that status.
Thinking like that will lead you straight to the poor house. Sure it’s nice to have a phone that is up to date; but if it still works and performs all the necessary functions, there’s no need to upgrade every single time a new version comes out.
Be different than the Joneses. Keep your treasure to yourself and don’t flash it.
3. You’re Not Invested.
When it comes to investing, you should definitely not put off today what you think you can do tomorrow. Smart investing means investing now.
Starting at age 20, in an ideal world, you should be saving and investing $3,000 per year. But in the realistic world we live in, you’re probably already a year (or ten) behind. So if you haven’t started yet, now is the time.
For example, if you invest $300 per month starting at age 20 and don’t stop until you’re 60-years-old and managed an 8% overall return during that time, you would have more than $1 million dollars in that account alone.
If you had waited until you were 30 to get started, you would only have $440,445 in your account. Those first ten years you missed out on would cost you more than $550,000 in returns — even though you only skipped paying $36,000.
This content is only available to subscribers
Subscribe now and have access to all our stories, enjoy exclusive content and stay up to date with constant updates.
Unlock contentAlready have an account? Sign In
