If you’ve gained control of your budget and sticking to it, it’s time to start thinking ahead and building your wealth. To get ahead and stay there, follow these easy steps!
- Max Your 401k contributions
If you’re not maxing out your 401k contributions, you’re losing money. Now, not everyone works a regular 9-5 with 401k options, so this may not seem fair to small business owners or entrepreneurs. If you are your own boss, open a tax deferred account or IRA Roth and contribute 15% of your take home. By maxing out your contributions to these types of accounts and leave them alone, you set yourself up for comfort with 6-7 figure savings.
- Become A Homeowner
No matter how old you are, the best thing you can do for yourself is to buy a modest home as soon as possible and get out of the renting world. Save up a 20% deposit and get your credit to 700 for the lowest payments possible. In a lot of areas of the country, your mortgage payment can be half of what rent is in the same area would cost. Keep your eye on the housing market and buy when housing prices are low, and if a housing market bubble starts up, sell high. This will get you into position invest in your forever home once you’re ready to really settle down.
- Educate Yourself
Learn how about the stock market and start a portfolio. Wealthy people can live off the interest from their portfolios alone, while amassing their wealth for future generations. Keep up to date on what’s going on in the finance world and diversify your stocks.
- Negotiate Your Salary
Ask for what you are worth. Learn to sell yourself and your accomplishments and use them to gain ground each year on your salary.
Set financial goals and take the steps to meet those goals. Give yourself benchmarks along the way. Set time frames for when you want to pay off your student loans, your home, your car. Work your budget, work hard and free up those payments to pay yourself!