Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
The $10,000.00 Rule!
Click the podcast below, “Using the 10,000 Rule to Accumulate Wealth,” if you prefer an audible version.
According to author Malcolm Gladwell, it takes about 10,000 hours of practice to become a master at any complex task: pianist, artist, brain surgeon, etc. Mastery is not born but created, practiced, and executed. So why not apply the same concept to savings, except your goal is to save and invest a MINIMUM of $10,000.00, one dollar at a time?
On Your Mark, Get Ready – Save!
Your assignment – save $10,000.00 and set an achievable target completion date. Two strategies to save, cut your expenses, or earn more money. Pick your plan, or better yet, do both! Finally, deposit your savings automatically to ensure you pay yourself first!
First Stop – Your 401K Plan
The 401-K is one of the best tools to automate and build savings, AND many employers match a percentage of your savings. 401(k)s benefits include tax breaks, high contribution limits, catch-up contribution percentage at 50+, and your money is sheltered from creditors. If your company offers 401K plans, SIGN UP IMMEDIATELY —this is free money!
YOU DO NOT HAVE ACCESS TO A 401K-Plan
That’s no problem. You need a regular investment account. You can start accumulating savings in your existing savings account or open a new one.
You can also open two accounts at any investment houses: a Cash Management Account for initial savings and an investment account, which aims to generate better returns. I listed three trusted firms below.
Fidelity: https://digital.fidelity.com/prgw/digital/aox/aohome/getstarted?accountType=brokerage
Vanguard: https://personal1.vanguard.com/mmx-move-money/registration-check
Charles Schwab: https://onboard.schwab.com/retail/welcome
PICK AN INVESTMENT – I RECOMMEND AN ETF
If you leave your savings in the cash fund at the above investment houses, you earn a laughable interest rate of <1%. One alternative is to Invest in an S&P 500 ETF. ETFs are a cost-effective way to get exposure to several stocks. The S&P 500 Index, as a benchmark, offers instant diversification as it covers a wide range of industries and the biggest companies in every one of them. Diversification. Investing in the S&P 500 can quickly expose you to a diversified group of stocks, as this index represents roughly 80% of the U.S. stock market. If you consistently invest $100 monthly in an instrument like an S&P 500 index fund over 45 years, you’ll likely build a substantial nest egg — perhaps even more than $1 million. The key is to remain consistent through the market’s ups and downs.
Your assignment is to research this ETF and decide for yourself if this is a good investment.
The paths to financial freedom are UNLIMITED. CHOOSE YOUR OWN!
LET’S MAKE SOME MONEY – CRYPTOCURRENCY IS ACCEPTED!
WHAT SUBJECTS DO YOU WANT TO READ NEXT? WHAT QUESTIONS CAN I ANSWER? UNTIL NEXT TIME!
YOUR GREATNESS IS NOT WHAT YOU HAVE; IT’S WHAT YOU GIVE! – SOME CHARITIES I SUPPORT
St Jude Hospital: https://www.stjude.org/
Wounded Warrior Project: https://www.woundedwarriorproject.org
Folds of Honor: https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: https://wcnkas.org
TRUST ME – YOU WILL LIKE THE BELOW BLOGS!
How To Become a Millionaire!
The Oracle of Omaha’s Investment Strategy Explained
Bill Gates Says This Is the Most Important Thing He’s Learned from Warren Buffett. (Hint: It Has Nothing to Do with Money) Two billionaires are linked by one common denominator.
WARREN BUFFETT’S NET WORTH IS DRIVEN BY THESE IRONCLAD TEN RULES
Warren Buffett Says This 1 Simple Habit Separates Successful People From Everyone Else http://flip.it/_AzPx9
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
WANT TO LEARN HOW TO BECOME WEALTHY – READ “THE MILLIONAIRE NEXT DOOR”
THE ONE BOOK YOU SHOULD READ…….
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
https://wealthbuildingpowers.com/2019/04/01/financial-literacy-is-just-not-that-complicated-trust-me/
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.