Getting rich is as easy as putting away a little bit here and there. You don't need a lot of money to get rich, but you do need drive, determination, and discipline. Let's look at six proven ways to make money that you can use right now.
- First pay yourself.
If you don't put money away before you start paying your bills, you probably won't be able to save much after you pay them. If your employer offers a 401(k) or 403(b) plan, sign up for it and decide how much you want to put away. The money will be taken out of your account before you see your paycheck. This will make the "loss" of spending money less noticeable to you. If you can, put in as much as you can, especially if your employer will match what you put in.
- Click Save.
The sooner you start saving, the more money you will have in the future. Even if you can't save much until your children are grown, you can still save more until you retire and still have a good nest egg.
- Pay off your debts.
Even before you start saving money, you should get rid of your debt first. If the interest rate on your credit card is 14%, it will be hard to find an investment that gives you a return that is higher than that. It would be better if you paid down your debt first and then started investing.
- Choose the right loan.
If you only plan to keep your home for a short time, choose an adjustable rate mortgage because the rate will be lower than with a fixed rate mortgage. Use the money you saved to pay off your mortgage faster; if rates start to go up, you can refinance your home.
- Put together an emergency fund. Emergency situations, especially ones that cost money, can ruin even the best plans. Put away up to six months of your income in case something bad happens. If you don't have an emergency fund, you might be tempted to go into debt, take money out of your retirement accounts, or sell investments that are worth a lot. Try to get your money back on track quickly if you don't have a good back-up plan.
- Take care of your things.
Even if you have a lot of money in the bank, it can all go away quickly if you don't have the right insurance. Make sure you have enough health/dental, home, life, and disability insurance to meet your needs. All it takes is one court ruling against you to lose everything you own.
Some people get rich quickly, but most get rich after careful planning and good management of their resources. You can get ready for the days ahead if you use these six tried-and-true ways to build wealth right now.
