Accumulate Money By Changing Approach
After you’ve paid your bills if you do not have any money leftover for savings you are not alone. A lot of individuals stretch their pay check so far that there is no money leftover for accumulation. It is easier to pile up debt than accumulate money because going into debt takes no effort whereas saving money does. Accumulating money beyond meeting your basic needs takes time. It’s a slow, consistent process. If you are tired of limited choices because you never have enough money maybe you need to change your financial approach.
Do It Early
People wait until they get their first job to start investing. Why wait? Young people can start investing by saving a portion of the money gifts they receive for birthdays, holidays and graduations. This helps develop the habit of saving money.
Do It Repeatedly
Make investing a regular part of your life. Set your savings plan on automatic pilot. With the availability of the automatic payroll withdrawal system, having your retirement plan contributions automatically deducted from your paycheck makes investing easier.
Use Time To Your Advantage
When you get your first job start investing into a retirement account as soon as you are eligible. Your best financial friend is time. The longer your money is invested the more time it has to grow. Compounding takes some of the work out of investing because it has your money earning money for you.
Avoid The Debt Trap
Debt is so easy but it robs you. The interest you pay on credit card debt and auto loans, etc. could be compounding in an investment. Sometimes debt is unavoidable so if you find yourself trapped, pay it off as quickly as you can so your money can start working for you again.
Save First, Spend Second
The way you pay yourself first is by skimming your savings off the top of your pay check before you start spending. Start by saving small amounts, it all adds up. Billionaire Warren Buffet once said “those who understand money spend what’s left; those who don’t, save what’s left”. Think about that.