Automated savings--
If your employer offers a 401K or similar retirement fund that they will match, make sure that you sign up for it ASAP. Put in the max, if possible.

Make smart decisions about big purchases--
Buy a reliable, safe car
Certain features of real estate are somewhat reliable predictors of sustained value--good public schools, close to amenities

One house, one spouse--
Choose your spouse wisely and don't get divorced.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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?

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

How does one accomplish #1?

As someone else noted, get the skills for which people are willing to pay $$$$ for you to do. You don't need to be a lawyer, doctor, etc... Certifications and skills are key after college. Employers, especially fast growing companies, want people who can hit the ground running. A top school, prestigious prior employer, etc... only matter to established companies that use such criteria as thresholds for employment - they're more like a club than a place to earn big $$$$.

Also, if you have any entrepreneurial inclination whatsoever, learn how to run a business from inventory, finance and employment, to accounting and payroll. When joining a company, move around the business and learn a wide range of skills. You can pick these up in 3-5 years in a small company.

It is a two step process to be a millionaire

1) get one million
2) you are a millionaire

Anonymous wrote:We have a very extensive budget (accounts for everything) and we don't deviate.

We are a family of 3 (no plans for more children) and live in a townhouse walking distance to the metro in a great pyramid for under $450k.

We only have 1 car (DH and myself both take the metro to work).

No cable, just Netflix, Hulu (the $8 one), and Amazon Prime.

We absolutely live below our means. We eat out once every 2 weeks (max), and I LOVE getting a good deal!

One kid definitely helps but what the heck about your housing??

Check out Bogleheads forums and Bigger Pockets forums

We have a very extensive budget (accounts for everything) and we don't deviate.

We are a family of 3 (no plans for more children) and live in a townhouse walking distance to the metro in a great pyramid for under $450k.

We only have 1 car (DH and myself both take the metro to work).

No cable, just Netflix, Hulu (the $8 one), and Amazon Prime.

We absolutely live below our means. We eat out once every 2 weeks (max), and I LOVE getting a good deal!

Anonymous wrote: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

This is us, and it worked perfectly.

-- From food stamps to retired at 53 with $5.5 million.