Building wealth isn’t easy when you have an average salary and a list of bills. But you don’t have to earn a lot to retire comfortably. Instead, you need to approach your spending differently. You should pay yourself first, which means that whenever you earn money, you should set aside a portion for your future self. Anyone can do this, regardless of their salary.
Here are five effortless ways to get rich by retirement. Building wealth will have never felt so good!
Start Early (in Your 20s)
Unspent money gets better over time. If you have an average-paying job, putting away money early on is almost as good as shoveling away tons of money closer to retirement. And, when you’re young, you can invest your money more aggressively, which can help you build even more wealth down the line.
So how much of your income should you be setting aside for retirement? Ideally, 10-15 percent of your pre-tax income. And, you should start this in your 20s. This will help you build healthy habits that will last a lifetime - and give you enough to retire comfortably.
Spend Less Than You Earn
Another way to get rich is to spend less than you earn. And we don’t mean living within your means - we mean living below your means.
Start by analyzing your spending habits so that you can track where your money is going. Look for ways to save - can you cancel some subscriptions or cut back on eating out? Then, create a budget and stick to it. The money you save can be used for retirement, or at least to build an emergency fund.
Automate Your Savings
When saving money takes effort, you’re less likely to do it. Set yourself up for success by automating your savings. This way, you don’t have to do anything special to start building wealth.
While there are many ways to invest your money, one of the best strategies is to set up automatic contributions to your 401(k) or IRA. Your employer may even match your contributions!
Work with a Financial Advisor
Having a financial advisor is an effective way to ensure your money is being invested in the right places. After all, it’s not just how much you invest that matters but what you invest in.
If your portfolio is too conversative, your savings won’t grow fast enough. If it’s too aggressive, you could be left with nothing. Your advisor will also make sure that you’re using every advantage to your benefit.
Stick to Your Plan
Once you have a carefully laid out plan for retiring rich, make sure you stick to it. Even slight deviations can cause a gap in your savings. And while it may seem like all you're doing is working and socking money away, remember that you’re taking care of your future self, too. This way, you can ultimately work less and live better.
Leonard Financial Solutions can help you build wealth in a few simple steps. Schedule an appointment with one of our financial advisors to discuss your tax-free retirement.
Here are five effortless ways to get rich by retirement. Building wealth will have never felt so good!
Start Early (in Your 20s)
Unspent money gets better over time. If you have an average-paying job, putting away money early on is almost as good as shoveling away tons of money closer to retirement. And, when you’re young, you can invest your money more aggressively, which can help you build even more wealth down the line.
So how much of your income should you be setting aside for retirement? Ideally, 10-15 percent of your pre-tax income. And, you should start this in your 20s. This will help you build healthy habits that will last a lifetime - and give you enough to retire comfortably.
Spend Less Than You Earn
Another way to get rich is to spend less than you earn. And we don’t mean living within your means - we mean living below your means.
Start by analyzing your spending habits so that you can track where your money is going. Look for ways to save - can you cancel some subscriptions or cut back on eating out? Then, create a budget and stick to it. The money you save can be used for retirement, or at least to build an emergency fund.
Automate Your Savings
When saving money takes effort, you’re less likely to do it. Set yourself up for success by automating your savings. This way, you don’t have to do anything special to start building wealth.
While there are many ways to invest your money, one of the best strategies is to set up automatic contributions to your 401(k) or IRA. Your employer may even match your contributions!
Work with a Financial Advisor
Having a financial advisor is an effective way to ensure your money is being invested in the right places. After all, it’s not just how much you invest that matters but what you invest in.
If your portfolio is too conversative, your savings won’t grow fast enough. If it’s too aggressive, you could be left with nothing. Your advisor will also make sure that you’re using every advantage to your benefit.
Stick to Your Plan
Once you have a carefully laid out plan for retiring rich, make sure you stick to it. Even slight deviations can cause a gap in your savings. And while it may seem like all you're doing is working and socking money away, remember that you’re taking care of your future self, too. This way, you can ultimately work less and live better.
Leonard Financial Solutions can help you build wealth in a few simple steps. Schedule an appointment with one of our financial advisors to discuss your tax-free retirement.
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