Category: Earning & Saving
Saving some of your earnings by living below your means is a key to successful investing. There are many ways to find money to invest, such as living simply so you’ll save more money and developing a career so you’ll make more money. The Earning and Saving category equips you with practical tips for spending less and earning more.
I just finished reading Millionaire Women Next Door by Thomas J. Stanley, Ph.D. and became intrigued with Stanley’s references to income statement and balance sheet affluence. As a business major who has worked in financial analysis and accounting (and someone who is more balance sheet than income statement oriented!), I bonded to these terms immediately.
Learn more about these two types of affluence and why they can matter.
After you have defined your financial goals, you may want to figure out how to reach your goals. There are many variables and detours on the way to achieving your goals. But you may find basic financial calculations helpful in charting your course.
Start by identifying a dollar value for each goal; then determine how much you should set aside to reach this goal within a certain time frame. You can use Microsoft Excel or Google Sheets to perform these calculations. I’ll show you the basics.
You don’t have to inherit a trust fund or run a business empire to become a millionaire. According to the 2014 Fidelity Millionaire Outlook Study, specific money-related behaviors can enable you to accumulate significant wealth, counted in the millions of dollars by the time you retire.
The Roth IRA has rules that benefit investors of all ages.
If you’re young and need extra cash, you may be able to extract Roth IRA contributions (tax- and penalty-free) to pay for a new house, car, or bicycle; if you’re retirement age, you may be able to withdraw money without paying taxes. Plus, there are beneficial rules for those who are between starting out and spending down assets.