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Added on the 08/12/2020 15:57:05 - Copyright : Wochit
Just because you've worked hard and saved for years, don't be complacent--it doesn't mean you can afford to retire. According to Business Insider, if you haven't upped your savings rate over the years, you may not have saved enough. That's because the typical 3% people put into their 401(k)s just isn't enough to cut it these days. Another red flag is that you saved cash over the years, but didn't invest it. Despite the vagaries of the stock market, investing money is better than stuffing it into a piggy bank. Finally, if you've made significant early withdrawals from your retirement plan, you're probably years away from retirement. Preparing for retirement is a matter that requires planning, strategy, and active participation. Seek out professional advice.
Especially in uncertain times like these, the dream of owning one's home free and clear is an enticing one. On the other hand, isn't saving for retirement, or college funds more important? According to Business Insider, if you have the opportunity to pay off your mortgage early, the deciding factor comes down to just one thing: interest rates. If the rate on your mortgage is higher than the rate you'd earn by investing cash in the stock market, pay down the debt first. But before you do that, run the numbers to see if refinancing your mortgage would make sense. If so, you can apply the freed-up cash towards your high-interest debt. Once that's cleared up, pay off the mortgage!
If you're struggling to pay off debt, consider what one waitress did to clear up $6K of student loans in just eight weeks. Business Insider reports Chelsea Clarke started waitressing upon graduating from college, and immediately adopted four key financial strategies. Business Insider reports she hustled for side gigs first. She picked up extra shifts and networked with her customers to land website design jobs. Next, she kept her money in cash. Paying for things in cash immediately caused her to reduce her spending. Then, she used a spreadsheet to track every bit of income and expenditure. That kept her on track so she could adopt her fourth strategy. The fourth tactic was to use her spreadsheet to set weekly goals and, if she met them, to celebrate in an affordable but meaningful way!
The great Warren Buffett is a skilled investor who is studied, analyzed, and imitated by many. But according to Business Insider, most people already have what Buffett has used to generate his immense wealth. In Morgan Housel's new book 'The Psychology of Money,' Housel argues that the 'secret' is simply how long Buffett's been investing. In other words, time. When measured by average returns, Buffett isn't the greatest investor of all time — but he's had time and patience on his side. In fact, Buffett admitted this himself in an interview with motivational coach Tony Robbins, who asked Buffett how he got so rich. Three things: Living in America for the great opportunities, having good genes so I lived a long time, and compound interest. Warren Buffett Founder, Berkshire Hathaway
Ramit Sethi is the author of 'I Will Teach You To Be Rich,' and its associated courses and seminars. His material is wildly popular, and provides many techniques for building wealth. Some focus on entrepreneurship, and others focus on investment. One reader, Sunny Shah, built his own savings and investment portfolio by using just two techniques Sethi suggests. According to Business Insider, he first used the pay-yourself-first strategy to prioritize saving. Shah scheduled his deposits to his savings and investment accounts even before payments for household bills or discretionary spending. And he used a dollar-cost averaging strategy to save for retirement and other long-term goals, investing the same amount each month automatically. Now just 25 years old, Shah's savings and investment portfolio has surpassed the $100,000 mark!
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