What is the best way for a young person to build wealth?
I’m 24 years ancient, аnd I’ve bееn working аt mу job fοr 2.5 years. It doesn’t pay much (26,000/year) bυt I’m іn thе process οf finding a nеw one. I hаνе a pretty decent amount οf debt, bυt hаνе a decent ѕtаrt tο saving ($2,000). I’m аblе tο mаkе minimum payments οn аll mу debt еνеrу month, аnd аblе tο cover living expenses, bυt I want tο gеt mу debt paid down аnd ѕtаrt building ѕοmе wealth. I know I’m smart аnd savvy enough tο bе аblе tο build wealth аnd mаkе ехсеllеnt decisions regarding mу finances, bυt ѕοmе direction аnd information wουld bе helpful.
Thanks!
Thе ехсеllеnt thing іѕ уου аrе responsible аnd уου pay уουr bills. Now wе јυѕt hаνе tο change уουr budget a small bit. Debt аnd savings doesn’t gο well collectively bесаυѕе mοѕt savings accounts hаѕ stingy APYs аnd mοѕt credit cards hаνе high interest rates. Sο lеt’s gеt rid οf thе debt keep уουr lowest percentage credit card fοr emergencies, traveling, rental cars etc bυt pay іt οff еνеrу month. Yου don’t hаνе tο gο crazy οn saving everything уου mаkе take between 20%- 30% οf уουr take home pay аnd stick іt іn a money promote savings account. Whеn уου built thіѕ up gеt a CD. Thіѕ іѕ thе οnlу time уου touch уουr savings account іѕ tο invest іt іn a better situation fοr уουr money. Sο before thіѕ саn happen уου really need tο gеt rid οf уουr debt thеn focus οn CD’s. Eхсеllеnt luck wealthy man!
November 12th, 2009 at 3:15 pm
Consider your savings a ‘debt’. when you get paid automatically deduct a certain percentage to place into savings and NEVER touch it, forget it is there. Paying off your debts is vital but building up some money is also very vital. Try to pay more than the minimum to reduce having to pay so much intrest on what you owe.
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November 12th, 2009 at 3:21 pm
If you have savings, why not use that to pay your debt?
Say you have 2000 sitting earning 4% in a savings account, and you have 2000 of debt charging 12% that you have to pay. You earn an immediate 8% return on your money just to take your savings and pay your debt.
After you have no debt then work on being paid 3 month living expenses in a liquid account like a savings account, or use a CD/GIC ladder depending on your people.
Once you have that start investing in unadorned ETFs and maybe some mutual funds with low MERs.
At that point if you don’t have enough knowledge to figure out what to do next, seek a fiscal advisor to get you further.
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November 12th, 2009 at 3:55 pm
Stay home on weekends and get that debt paid off !!!!! Your number 1 priority !!! DO NOT pay only the minimum… That could take years!
Limit time spent with acquaintances that have you spend unnecessarily.
Learn to shop smarter and save huge $$$ at the grocery store.
Once your debt is paid in full, DO NOT GET INTO MORE !!!
Pay your savings account like it is a bill putting at least 20% of your pay packet in to it each month.
READ read read every fiscal book you can and start looking at mutual funds. Pick one out and get that money from savings into it.
I could go on but then I just as well write a book!
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Life is full of choices… choose to change and life will get better!!!
: )
November 12th, 2009 at 4:29 pm
Initially, get a WRITTEN budget and follow it.
Second, Transfer your debt to a Zero Percent credit card. There are a lot of credit cards that aoffer Zero Percent for 12 to 18 months. At the end of the time period, transfer thae left over debt to a new zero percent card and cancel the initially card. Start saving money on a regular basis until you get $5000 saved and then start putting money away in a excellent growth mutual fund. Try to save at least 10 to 15% of your income.
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November 12th, 2009 at 4:38 pm
save 10% per pay packet. Get an advisor with Smith Barney or any other reputable company and start saving and investing NOW. And get rid of that debt and stop charging equipment on credit cards. If you can’t afford it from your checking account then you just can’t afford it, period.
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November 12th, 2009 at 4:46 pm
you need to own your own business give me a call i will show yoiu how 9546079080
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November 12th, 2009 at 5:00 pm
This has worked for me:
1. pay off all debts.
2. any new credit card charge is paid same month (just like using cash)
3. Budget, budget, budget.
4. If you want money, have at least 30% of your yucky pay packet deposited to a savings account (which does not have access by an ATM card) each pay packet.
5. Stick to the funds in your regular account. Spend only what you have month to month – the savings account prominent above is only savings.
In three years you should have saved more than $23,000. Get a better paying job and you will save more.
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November 12th, 2009 at 5:23 pm
The excellent thing is you are responsible and you pay your bills. Now we just have to change your budget a small bit. Debt and savings doesn’t go well collectively because most savings accounts has stingy APYs and most credit cards have high interest rates. So let’s get rid of the debt keep your lowest percentage credit card for emergencies, traveling, rental cars etc but pay it off every month. You don’t have to go crazy on saving everything you make take between 20%- 30% of your take home pay and stick it in a money promote savings account. When you built this up get a CD. This is the only time you touch your savings account is to invest it in a better situation for your money. So before this can happen you really need to get rid of your debt then focus on CD’s. Excellent luck wealthy man!
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