Read on Twitter
If you want to build wealth, you must have wealth building habits. It is hard to comprehend what building wealth is if you aren't even sure where to really start with your money.
A
on 5 actions you should take going into 2021 if you want to build wealthy habits
1. Get on a budget. Can't tell your money what to do if you don't know where it goes
a. look WHERE your
has gone the last 3 months. Your mind will be 
with how much you have spent on eating out, etc.
b. make a plan for the upcoming month to spend less than you make
a. look WHERE your
has gone the last 3 months. Your mind will be with how much you have spent on eating out, etc. b. make a plan for the upcoming month to spend less than you make
2. Starter emergency fund. Life happens. Get some margin in your life. I rec 2 options
a. $1,000 starter fund
b. the "deductible" EF. Add up health ins, auto ins, etc deductibles to see how much you need set aside to cover those
Choose whichever you are most comfortable with
a. $1,000 starter fund
b. the "deductible" EF. Add up health ins, auto ins, etc deductibles to see how much you need set aside to cover those
Choose whichever you are most comfortable with
3. Start knocking out non-mortgage debt smallest balance to largest (CCs, car loans, student loans, etc)
I believe in the snowball method to pay off debt (smallest balance first) because it helps you build some momentum by knocking out small ones first
Debt steals your
I believe in the snowball method to pay off debt (smallest balance first) because it helps you build some momentum by knocking out small ones first
Debt steals your
4. Start investing at least 15% of your gross household income towards retirement
a. get any 401k match from work
b. fund Roth IRA
If not at 15% still, can always go back and add more to 401k.
a. get any 401k match from work
b. fund Roth IRA
If not at 15% still, can always go back and add more to 401k.
5. BELIEVE you can build wealth. The X factor in wealth building is mindset. Mindset drives behaviors.
Can you:
a. delay gratification
b. stay disciplined
c. differentiate wants vs needs
d. make sacrifices today for the life you want tomorrow
YOU CAN DO IT!!
Can you:
a. delay gratification
b. stay disciplined
c. differentiate wants vs needs
d. make sacrifices today for the life you want tomorrow
YOU CAN DO IT!!
