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