#INVESTMENT
1. Put money in the stock market. Invest money in stocks, bonds, or other vehicles of investment that will give you an annual return on investment (ROI) great enough to sustain you in your retirement. For instance, if you have one million dollars invested and you get a reliable 7% ROI, that's $70,000 per year, less inflation.
- Don't get enticed by day traders who tell you it's easy to make a quick buck. Buying and selling dozens of stocks every day is essentially gambling. If you make some bad trades — which is unbelievably easy to do — you can lose a lot of money. It's not a good way to get rich.
- Instead, learn to invest for the long run. Choose good stocks with solid fundamentals and excellent leadership in industries that are primed for future growth. Then let your stock sit. Don't do anything with it. Let it weather the ups and downs. If you invest wisely, you should do very well over time.
2. Save money for retirement. Keep saving. It seems that fewer people are saving adequately for retirement. Some feel they may never be able to retire. Take advantage of tax-deferred retirement plans such as IRAs and 401Ks. The tax treatment they embody will help you save faster for retirement.
- Don't put all your trust in Social Security. While it's a good bet that Social Security will continue to work for the next 20 or so years, some data suggest that if Congress doesn't radically alter the system — either by raising taxes or reducing benefits — Social Security won't be available in its current form. It is probable, however, that Congress will act to "fix" Social Security. In any event, Social Security was never designed to be the only resource for retirees in their later years. That makes it all the more important that you save and invest for the future. [1]
- Invest in a Roth IRA. A Roth IRA is a retirement account to which working individuals can contribute an annual sum of $5,500. That money is then invested and gathers compound interest. If you wait until retirement age to take money out of your Roth IRA, the money that you withdraw isn't taxed, because it was taxed at the time you first earned it.
- Contribute to a 401(k) account. This is an account set up by your employer where pre-taxed contributions can be invested. Your employer may choose to match all or part of your contributions. This is probably the closest thing you'll get to "free money" in your life! Contribute at least enough to take full advantage of the match.
3. Invest in real estate. Relatively stable assets like rental properties, or potential development land in a steadily growing area is a good way to build wealth. As with any investment, there are no guarantees. Many people, however, have done quite well with real estate. Such investments are likely to appreciate in value over time. For example, some people think that an apartment in Manhattan is almost guaranteed to increase in value over any five-year period.
4. Invest your time. For example, you might like having free time, so you give yourself a few hours a day to do nothing. But if you were to invest those few hours into getting rich, you could work towards having 20 years of free time (24 hours a day!) with early retirement. What can you give up now in exchange for being rich later? Investment advisor Dave Ramsey likes to tell his radio audience, "Live like no one else today so that you can live like no one else tomorrow."
5. Avoid purchases that are likely to depreciate rapidly. Spending $50,000 on a car is sometimes considered a waste because it's likely that it won't be worth half that much in five years, regardless of how much work you put into it. As soon as you drive a new car off the lot, it depreciates about 20%-25% in value and continues to do so each year you own it. [2] That makes buying a car a very important financial decision.
#Enrichment Through a Career
2. Choose the right profession. Look at salary surveys which indicate average annual incomes for specific professions. Your odds of getting rich are diminished if you pursue a career in teaching as opposed to a career in finance. Here are some of the highest paying jobs in America:
- Doctors and surgeons. Anesthesiologists make a whopping $200,000+ per year.
- Petroleum engineers. Engineers who work with gas and oil companies can make a very good living. In most cases they make upwards of $135,000 per year.
- Attorneys. Lawyers top out at just above $130,000 per year, making this a lucrative field if you can put in the time.
- IT managers and software engineers. If you're good at programming and a whiz at computers, consider this very well-compensated field. IT managers regularly make $125,000 per year.
3. Choose the right location. Go where the good jobs are. If you want to pursue finance, for example, there are far greater opportunities in big cities than in rural, low-populated areas. If you want to build a startup, you'll probably want to consider going to Silicon Valley. If you want to make it big in the entertainment industry, go to LA or New York City.
4. Get an entry-level job and work your way up. Play the numbers game. Apply to many places and subject yourself to lots of interviews. When you get your job, stick with it and get the experience you need to advance.
5. Change jobs and employer. Once you've gotten some experience under your belt, consider finding a new job. By changing your environment, you can increase your pay and experience different corporate cultures. Don't be afraid to do this several times. If you're a valued employee, it's also likely your current company may offer you a raise or other benefits if they know you're looking at leaving.
0 comments