'Do you want to be rich?' is an easy question. Most likely you do, unless you believe you're not greedy. In that case, you want to be able to live comfortably without worrying about money. Either way, you have to be rich.
You might agree that being rich with friends, family, and love is very important, but let's just consider monetary riches for now. What does it take to be rich? How much money do you need to have? When can you finally consider yourself a 'rich and wealthy' individual?
When you were a kid, having $100 probably made you feel rich. Right now, $20,000 seems like a lot of money, but for many, this would not last entire year.
Some people will never be able to retire making retirement at age 65 with comfortable living look like riches. Many look at having $1,000,000 as being rich. You might even just look at someone driving around a Mercedes and think they're rich, even if you don't know how much money they really have.
First, how old are you? If you are 20 years old, you could start saving $5,000 a year in an IRA account, earn a conservative 8% annual return in the stock market, and in 40 years have over $1.3 million. If you are 20 and want to have that same amount but retire at 45 years old, several things need to change. Either you need to save more, get a higher return, or both if you can.
Another deciding factor is how much money you make and how much of it can you save. If you make over $100,000 a year that's great, but if you can only afford to save $500 a year, your salary does you no good. You have to cut your expenses so that you can save more. If you make $40,000 a year and are able to save $5,000, you are actually much better off then the other guy.
The sad part is that many people believe they can't save. If you feel like you could never be rich because you can't afford to save, then you won't ever be rich. You need to be proactive if you want to secure your financial future. You need to make a plan.
Where you put your money will have a huge effect on how much you can save. If you keep it at home or in a bank earning barely no interest, you end up with about how much money you put in. If you instead invest it year in and year out, in time, you could more than double that money.
Investing your money will make it grow very large and quickly. If you won't be retiring for more than 20 years, you should invest most of your money in the stock market. This will ensure the greatest return. As you near retirement, you can begin to invest more in bonds to help minimize risk.
Whether you ever become rich depends on how old you are, how hard you are willing to work, how much less you are willing to live on, and how well you plan. If you want a lot of money, you need to make goals and build a plan to get you there. It can be done, but it takes a lot of hard work.
You might agree that being rich with friends, family, and love is very important, but let's just consider monetary riches for now. What does it take to be rich? How much money do you need to have? When can you finally consider yourself a 'rich and wealthy' individual?
When you were a kid, having $100 probably made you feel rich. Right now, $20,000 seems like a lot of money, but for many, this would not last entire year.
Some people will never be able to retire making retirement at age 65 with comfortable living look like riches. Many look at having $1,000,000 as being rich. You might even just look at someone driving around a Mercedes and think they're rich, even if you don't know how much money they really have.
First, how old are you? If you are 20 years old, you could start saving $5,000 a year in an IRA account, earn a conservative 8% annual return in the stock market, and in 40 years have over $1.3 million. If you are 20 and want to have that same amount but retire at 45 years old, several things need to change. Either you need to save more, get a higher return, or both if you can.
Another deciding factor is how much money you make and how much of it can you save. If you make over $100,000 a year that's great, but if you can only afford to save $500 a year, your salary does you no good. You have to cut your expenses so that you can save more. If you make $40,000 a year and are able to save $5,000, you are actually much better off then the other guy.
The sad part is that many people believe they can't save. If you feel like you could never be rich because you can't afford to save, then you won't ever be rich. You need to be proactive if you want to secure your financial future. You need to make a plan.
Where you put your money will have a huge effect on how much you can save. If you keep it at home or in a bank earning barely no interest, you end up with about how much money you put in. If you instead invest it year in and year out, in time, you could more than double that money.
Investing your money will make it grow very large and quickly. If you won't be retiring for more than 20 years, you should invest most of your money in the stock market. This will ensure the greatest return. As you near retirement, you can begin to invest more in bonds to help minimize risk.
Whether you ever become rich depends on how old you are, how hard you are willing to work, how much less you are willing to live on, and how well you plan. If you want a lot of money, you need to make goals and build a plan to get you there. It can be done, but it takes a lot of hard work.
About the Author:
Learn more about how to become rich and where to find save money tips, learn more from Samantha at her website from the links provided.
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