When we write down our top 10 goals in life, it’s fair to say that accumulating wealth is probably somewhere on the list for the majority of us. Sure, not everyone wants to be rich beyond his or her wildest dreams but having enough saved to be secure is a goal worth having. Lining your nest and having a comfortable nest egg doesn’t take genius-level financial smarts, just the ability to adapt to a few simple ideas.
Pay Yourself First And Cut Where You Can
Setting a budget and sticking with it is the foundation of saving money. No matter how much income you’re bringing in, it’s important to have a good grasp on how much you’re spending, and what that money is going toward.
Putting away a percentage of each paycheck and making sure that funds are going toward debt, if you are carrying any, is the key so make sure you prioritize those deposits. From there, you’ll need to take a hard look at other expenses. If you’re spending more than you’re bringing in, it’s time to make some changes. Consider carpooling, cutting cable or even growing your own veggies.
Live Within Your Means (Even When Your Means Changes)
Once you’re comfortably living within your means, you’re in a good spot to start amassing money. Let’s say that your hard work at the office was recognized and you’re rewarded with a raise. Instead of treating yourself to a new car or an exotic vacation, you’re better off investing the extra income. After all, you’re settled on your current budget so funneling the additional money into an investment account is a wise move. With compound interest and some smart portfolio picks, it may even turn out that you’re paying yourself twice over (or more!).
Looking Out For Lower Interest
If you’ve found an attractive lower interest rate, refinancing your mortgage may be a smart way to save. With these savings, you’re best served by taking the same route you would with your promotion money – investing it. Of course, refinancing your home isn’t an inexpensive choice to make. Schedule a meeting (or two) with a real estate lender to learn if your long- and short-term goals match up with the consequences – positive and negative – of refinancing.
Keeping those lines of communication open with a personal financial officer will help you in the long run, for everything from car purchases to investment assistance. Because when it comes down to it, the best method or system for financial success is persistence. Figure out what works best for you and your family and stick to the process. Make a commitment to putting funds into an account where it can grow and be proactive about growth. And then? Watch your money grow.