How does one build wealth?
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Anonymous
| If you come from no money, and no education about money, how do you build wealth? I spent my life broke, not for lack of hard work, but for lack of financial literacy on my parents part. That led to financial illiteracy on my part. Regular 9-6 job. Kids. The grind. It's just not working for me anymore. Not if I can do more. So, how does one even begin? Especially if they know nothing about stocks and investments and fear taking risks? |
Anonymous
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I am an immigrant from a 3rd world country without any family here and my parents were terrible w money- if I can do it, you can too!!!
#1: invest in yourself. Go online to see if you can take free courses and if you pass, buy the certifications #2: you have to live below your means. A dollar spent means a dollar not invested and hence compounded with interest or stock appreciation for the future. |
Anonymous
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Pay yourself first. This means that your savings comes right off the top of your paycheck and you never see it. Set your goal at 10% and increase the percentage gradually every time you get a raise.
Live off the rest. |
Anonymous
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1. Compounding returns
2. Selling a company/ patent, etc. That's really it for your options, OP. The first one obviously works best if your fourth gen family member started investing 100+ years ago, but the next best time to start is now. Sidenote: Once you have some foundation built up, invest in an adviser who can help you figure out tax structures, etc. |
Anonymous
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Yeah, if you fear taking risks, you're probably not going to start a company or earn the big $$ payout in the market.
Personally, I invested in real estate for a passive income stream. My parents were both lawyers who were terrible with money and taught us nothing. Just read read read and then make the leap! |
Anonymous
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1. Spend less than you make
2. Invest the difference in a diversified portfolio that meets your risk-tolerance and long-term goals 3. Stay the course and do not react to short-term fluctuations. 4. Wait a couple decades |
Anonymous
1. earn a high income 2. dump max 19k into a 401k 3. dump max 5.5k into IRA 4. live life, enjoy life, contribute into 529 plan for children 5. money left over? pay down mortgage or buy real estate |
Anonymous
How does one accomplish #1? |
Anonymous
| Live below your means. |
Anonymous
6. Don’t bother with minor details. |
Anonymous
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1. Develop skills that have a higher value than what you can currently offer.
2. Save 20%+ of your income. 3. Invest it in a few index funds - equities and bonds |
Anonymous
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You build wealth by spending less than you make and investing the difference. If you are unsure about investment, put your money into an index mutual fund.
The basic concept is really this simple. The difficulty is having the discipline to carry through. Good luck OP. |
Anonymous
Not necessary as long as income > expenses. |
Anonymous
for jobs with only a BS that pay > 150k.... 1. nurse + overtime hours with night shift 2. computer science/electrical engineering work in tech or law, management not necessary 3. IT in networking as a contractor, may not need BS 4. tech/pharm sales, may not need BS |
Anonymous
| Best way to invest in the market for the long term for most folks, including you, would be to dollar-cost average over the long term and pay yourself first. This means get set-up with an index fund - Vanguard S&P 500 index fund recommended and deposit automatically into it every month for years and years until you retire. Set it up so it comes straight out of your paycheck. Don't worry if it goes down in value, you'll be buying at cheaper prices which is good. In the long run the market has always gone up - that is all you can do really, trust that in the long run companies will continue to grow and make money and the market will go up. |