When I say that you can get rich (or rich enough) without
lifting a finger, it probably sounds too good to be true.
But then again, you can opt for other ways that would sound more
realistic that it may seem. You can boost your bottom line
automatically, and control your finances too!
Here is an easy money-management system that actually works.
There is a miracle at its center that will amaze you. In fact,
it has already amazed many people when they have tried it
themselves. Once you start down this road, you will wind up
spending less and you will also wipe out your consumer debt and
other financial burdens. In the end, you will be able to work on
it in order to solve your way to millions.
The key to this system: Save more money.
However, there are people who may contend that it is such an
impossible scheme. Some even insist that they are already living
paycheck to paycheck.
The fact is you can indeed save more than what you are doing
right now.
How? Have money automatically taken out of your paycheck or your
bank account. Most of us spend whatever we have available in our
checkbooks ń and maybe a bit more. If you limit that amount,
your spending will magically shrink to fit.
As a test run, try taking $10 out of what you have in your
wallet each day. At the end of the month, your life would not
change much, but you will now have a tidy $300 tucked away.
Try to repeat this technique over a year and you will have added
about $7, 200 to your savings without ever noticing what you
gave up. If $10 seems like too much, start with $5.
Your bank can set up automatic payments to a savings or
investment account; or you can do it yourself through an online
bank account.
Here is how to build wealth through automatic savings:
1. Eliminate your consumer debt
Credit card interest payments do not seem very large from month
to month. But paying 15% on an $8,000 balance adds up to $1, 200
a year.
However, if you pay off the debt and add $1,200 to investments
that earn an average of 8% a year, you will have $59,000 after
20 years and $149,000 after 30 years! That is a lot of money,
indeed!
So, eliminate your debt as fast as you can using funds deducted
from your checking or saving account.
To figure the highest monthly payment you can afford, use the
financial calculator that is being provided by many sites
available in the Internet today. And with timely, automatic
payments on your credit cards, you will also avoid costly late
fees.
2. Set up an emergency account
Move money automatically each month from your checking account
into an account earmarked for unexpected expenses. Aim for a sum
that will cover three monthsí worth of basics like mortgage,
food, utilities, car payments, etc.
Once you have built this nest egg, you would not have to
withdraw from long-term savings if crisis hits like you suddenly
need something to compensate your hospital expenses. You can
also use automatic savings for planned expenses such as holiday
gifts or a vacation.
3. Check your companyís retirement plan
In the United States, there is an employer plan such as a 401(k)
or 403(b), wherein your company will deduct a percentage of your
income from each paycheck and invest the sum in your choice of
instruments, which are mainly mutual funds.
In other countries, some big companies match employee
investments to encourage savings, so if you invest more, you may
receive more from your company.
4. Check out other options
If you are self-employed, you can set up a plan with a mutual
fund company and make automatic contributions from your bank
account. Or you can get a pension plan.
5. Pick the right investments
Saving money is just a start. You have to choose investments
that will earn money over the long haul.
Look for a lifestyle mutual fund, which puts a portion of your
money in diversified stocks and the other portion in bonds, and
maintains a solid balance between the two.
Another good choice is a ětarget retirementî fund. Its portfolio
becomes more conservative as you approach retirement age.
With all these things in mind, there is no secret to building
wealth. You need to live on less than you make and invest the
surplus well. When you save and invest automatically, it is that
much easier to reach your goals.
About the author:
Daegan Smith the owner of
Net MLM Articles and the leader of the fastest growing team
of successful home business enterpernuers on the net. Find out
how we're creating financial freedom all across the globe and
how to get in on the action FREE =>
http://www.comlev.com
