The Key to Money Management: Make Money. Save Money. Grow Money
Before money becomes wealth, it’s the only money that can depreciate over time and slip away in seconds. For money to become wealthy, you need efficient management.
Without proper money management, the pursuit of money is lacking a real destination and purpose. You don’t have a real plan ahead and money just comes and goes right in front of your eyes. This uncertainty and slipperiness of money leave no opportunity for self-fulfillment either. You will not be able to see a definitive outcome of your hard work without having an objective in mind for all that hard-earned money.
Money management requires discipline, strategic thinking, and consistent effort. But, it’s never too late to start. Whether you are 25 or 52, money management can be incorporated into your lifestyle at any time. Always remember, money management has no deadline!
3 Steps to Build Your Wealth At Any Age
1. Staying Out of Debt
The only good debt is paid off.
Debt is one of the most dangerous cycles you could fall into. It’s a never-ending cycle of getting and losing money which you could be trapped with no exit. The more money you borrow, the less money you have to invest in you and your family’s future.
Furthermore, trying to save and invest while you’re surrounded by debt is like swimming in the ocean with your feet chained together. You’ll sink faster than ever. Get the debt out of your life first and then consider building wealth and getting that money wasted on interest back.
2. Having an Emergency Fund
If the COVID-19 pandemic has taught us anything it’s to plan for all contingencies. You never know when an emergency may show up. Life is unpredictable and you could find yourself in a pickle someday. Maybe not today, not tomorrow. But believe me, it can happen in a blink.
Before you start investing, make sure you have up to 6 months’ worth of expenses set aside in a savings account. And keep it strictly for emergencies!
3. Investing 15% of Your Income for Retirement
Now that you’ve got your debt your emergency fund out of the way, let’s get the real party started.
Most of us Americans picture retirement as us globetrotting with the family with a tropical juice in hand. That sounds amazing, doesn’t it?
But, you must realize that the first step to this vacation is to invest 15% of your gross income into either retirement accounts (e.g. 401(k)) or into profitable assets that can help grow your wealth.
However, do keep in mind, building wealth doesn’t happen overnight. You need to be consistent and regular with your investing patterns to gain financial success in the coming years.
How We Can Help?
You might be wondering where we come into place. Well, FYE Finance is here to guide you along this rocky path to retirement in heaven.
All this information might be confusing all of a sudden, but we can help you get started according to your financial potential.
Our consulting sessions can help you get a better idea of where you currently stand financially and where you can be 10 years from now with smart financial decisions.
Book your appointment now and see where life can take you!