To be wealthy, you want to grow your money as fast as you can. That means taking most of your savings – money that won’t be needed for awhile – and invest it in ways that make it grow, not just earn interest. My rule of thumb is the one year mark: If you’ll use [...]
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Money Habit #17 – All Savings Need to Earn Interest
I don’t know a single wealthy person who keeps significant sums in a checking account that does not bear interest. The theme here is your money has to earn money. Make your savings work for you. If your current checking account does not bear interest, move the money elsewhere. Plus any money saved that needs [...]
Money Habit #16 – If You Don’t Save Money, You’ll Never Be Wealthy
Perhaps the greatest discipline of the wealthy is the ability to save money. My Dad said once, “Carol, every month, save something from your income.” Even if it’s only $10/paycheck at first, do that. If you spend everything you earn, you never can build savings and investments. The easiest way to start saving is to [...]
Money Habit #14 – Create A Special Impound Account for Big Expenses
Wealthy people don’t have financial surprises. They plan ahead for big cash outlays. Whether it is for a house remodel, a daughter’s wedding next year, a big vacation soon, or just paying your taxes in April, you need to set up a special “Impound Account” to cover big expenses before they are due. Think of [...]