Wednesday, October 24, 2012
Pay Yourself to Wealth
I understand that it's fun to have new things. The excitement of owning something new is a powerful force and the American economy relies on it. But this force is also what holds a lot of people back from building wealth.
Over the years I've slowly increased my monthly investment contribution. When I would get a raise at work, I didn't think about what more I could afford. I thought about how much more I could invest. When I paid off my car, I continued to make the same car payments "to myself" into my brokerage account. I was already used to that money being spent each month so why not put it to work for me.
Of course I understand that I don't think like most people do. I'm the guy who still has a flip phone for crying out load (sidenote: my iPhone 5 will arrive mid-November). But these decisions have made a big change to my net worth over the years and, I have no doubt, will make me a wealthier person when I retire.
For those of you who would like to follow this strategy but feel you are in too much debt I'd like to recommend a site I've come across recently called ReadyForZero. This is a free service that helps consolidate your debt in one site. It then helps you set up a plan to get out of debt. It's a cool sight, and again, its free.
Well that's enough "preaching" for today. I promise to get back to talking stocks on my next post.
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