The Millionaire Investing Advice In Your 20s
Do you know “There are a total of 46.8 million millionaires worldwide Now!!” And the number is rising.
Your 20S is the best time to invest and make a million because starting early will help to compound your wealth for more time.
As you invest more now you will create more assets and you don’t have to worry about your future. Then you can have your Luxurious life guaranteed.
So, here you have it the most valuable piece of Investment Advice which you can have:
FIRST: STAY OUT OF STUDENT LOAN DEBT Unless someone has a clear career path they want to pursue, where a certain college is a REQUIREMENT to get there…it’s usually best to go an inexpensive community college first, save the money, and then figure out what you want to do from there. It is really important to stay out of student loans if you really want to save big bucks.
SECOND: GET A JOB I think it’ll be one of the best experiences you can get, and I have to say…there is a difference in the type of person who has work experience, versus the person who has none. Having a job will really tiches you how to play with your own money
THIRD: STAY OUT OF CONSUMER DEBT This means that you don’t go and rack up a whole bunch of credit card debt to buy the stuff you don’t need, don’t go and finance an expensive car, don’t go ballin’ out to impress your friends with how much money you have on your bank …all of that is stupid, it’s reckless, and 10 years from now will note mack any sense. I guarantee you’ll nearly regret all of it.
FOURTH: BUILD YOUR CREDIT SCORE All you need to do to get started is open up a secured credit card with a $200 limit, put a few expenses on the card every month, and then pay it off in full. You’ll pay $0 in interest, you’ll build your credit history, and over time, and you can continue adding in new credit cards to the mix. It will really help you when you need a Mortgage Lone or a health lone. And hay it will give you a free credit point which you can use for free, who does not like free stuff ??
FIFTH: LIVE BELOW YOUR MEANS I’ve found that the older you get — the less “socially acceptable” it is to live like a broke college student, and the less you WANT to live like a broke college student. So, now is your chance to get away with doing all the cheap and frugal things you’ve always wanted to do before people call you weird for doing them.
SIXTH: TRACK YOUR SPENDING You can’t effectively live below your means without knowing where you spend money, how you can cut back, and figuring out where it all goes. I’ve been tracking every single expense on Mint.com and PersonalCapital.com since 2012…and it’s helped me out a LOT in terms of optimizing my finances. And will also help you.
SEVENTH: TAKE UNCOMFORTABLE RISKS: I’ve really found that the WORST place you could be in your 20s…is COMPLACENT. If you’re satisfied where you are right now, but you know — deep down — you aren’t living up to your full potential — the ONLY way to break free from that is to get used to putting yourself under pressure. You HAVE to start making uncomfortable choices and taking a calculated risk to get yourself ahead, even if it isn’t the EASY decision to do.
INVESTING FROM THRE: -Open up a RETIREMENT ACCOUNT. This is just an account that you can invest within that saves you money on your taxes…for example, some of these accounts allow you to use them as a tax write off, and others allow all of your profit to grow tax-free…just depends on which ones you want to use. Invest in a broad index fund like the Vanguard S&P 500 ETF (VOO) or Fidelity ZERO Large Cap Index (FNILX). Don’t try to buy individual stocks (*if you don’t have a piece of good knowledge about the stocks). You can also go for real estate if you have a good knowledge of the industry.
Roth IRA: $6000 Per Year Post Tax Money. if you don’t know what Roth IRA is? It is basically an individual retirement account that offers tax-free growth of your money and tax-free withdrawals in your retirement. Roth IRA rules dictate that as long as you’ve owned your account for 5 years* or more and you’re age 59½ or older, then you can withdraw that money when you want to and you won’t owe any federal taxes. It is a great way to save your money from taxes.
Traditional 401k: $18,000+ Per Year Pre-Tax Money
3-fund portfolio: Now this gives you the ULTIMATE diversification across everything…so, you’re basically just investing in the entire world in the long run — and even if one or two industries go down, plenty of others will be there to pick up the pace.
Now, in terms of any other investment specifics, just remember this really
easy saying: time in the market beats timing the market. That’s it thank you for reading the article.
