1. Invest Every Windfall
When you receive an unexpected windfall such as an inheritance, cash gift or bonus, don’t spend it. Invest it. If you weren’t expecting the money, you’re not depriving yourself of anything by not spending it.
2. Live Below Your Means
You’ve heard that advice a million times, haven’t you? You keep hearing it because it really works. You can’t build wealth if you spend more than you save.
3. Continually Invest Small Amounts of Money
When you live below your means by not upgrading your lifestyle every time you get a raise or promotion, you have more and more money to invest. The secret to not getting whipsawed by the stock market’s volatility is to invest small amounts of money at regular intervals.
4. Contribute to Retirement Accounts
If your employer offers a retirement plan, participate in it, especially if there is a match. The match is free money, which is essentially a 100 percent return on your investment for just showing up
5. Pay Attention to Your Investments
We’ve all heard the rule, “buy and hold.” I don’t agree with that, because it often turns into “buy and ignore.”
Source: dailyfinance.com
No comments:
Post a Comment