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Money Habit #21 – Make Your Investments Automatic

Here is where you can create a habit that will serve you well for your whole investment lifetime:

Withdraw money from your savings/spending accounts periodically and invest that money to build wealth. 

Again, you can set up a withdrawal from your paycheck to go right into your 401 (k) at work or your own IRA (Individual Retirement Account). 

If you have a business, first of all pay yourself a salary.  Then part of your earnings can be allocated to go into your own self-employment retirement account. 

By definition, retirement investments are long-term, and therefore much of that money should go into growth investments – equities versus bonds.  You’ll get the huge benefit that no taxes are taken out of the earnings in those investments.  Your money will compound tax-deferred.  If you get a 10% return on these investments, your money will double in size in just over 7 years.  That adds up quickly leading to wealth over a lifetime.

Final Habit, #22, next – Fun With Money

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