 Everyone can use some extra money, right? But just how can you realize your financial goals? You need a strategy, actually a lifestyle. Here are a few money-smart ideas to incorporate.
• Stay healthy — Chronic health problems (e.g., diabetes) and obesity often are associated with less wealth. Reasons include medical expenses and reduced productivity. Eat nutritious meals, exercise regularly, and quit smoking.
• Think stability — People who stay married accumulate more wealth than those who divorce. It costs less to maintain one household. Similarly, people employed with one company often build more wealth than "job hoppers."
• Get educated — College graduates can earn up to $1 million more than high school graduates over a lifetime. |
• Live below your means — In "The Millionaire Next Door," millionaires profiled spent less than they earned and shopped for bargains.
• Save regularly — Wealthy people often save 20% (or more) of their income. They "pay themselves first" using automatic techniques such as direct deposit and deductions for retirement savings plans.
• Invest wisely — Successful investors make regular deposits at regular time periods (e.g., $50 per month) and hold high quality investments for the long term.
• Be tax smart — Wealthy people use legal ways to reduce income taxes including long-term capital gains, and tax-free and tax-deferred investments. |
