Most people want to be rich. Even the ones who say they don't, in reality, they do. They look at being 'rich' as greedy, but I'm sure they would love to live comfortably without having to worry about money.
You might agree that being rich with friends, family, and love is very important, but let's just consider monetary riches for now. What does it take to be rich? How much money do you need to have? When can you finally consider yourself a 'rich and wealthy' individual?
When you were a kid, having $100 probably made you feel rich. Right now, $20,000 seems like a lot of money, but for many, this would not last entire year.
You might think of rich as someone who has a nice new car, a big beautiful house, and is able to retire comfortably at age 65 and take frequent vacations. Another person might think you have to have $1,000,000 in order to be rich. You could live like this or even save up $1,000,000 over time.
You can be rich, but the degree to how rich you can be depends on your age, how much money you make, and how much you can save. If you are in your 20s and make enough money to put several thousand dollars a year into a retirement account, there is no doubt you could retire by age 65 if not earlier. Saving more money will get their quickly as will having a high return. Put both together and you're savings will be unstoppable.
Another deciding factor is how much money you make and how much of it can you save. If you make over $100,000 a year that's great, but if you can only afford to save $500 a year, your salary does you no good. You have to cut your expenses so that you can save more. If you make $40,000 a year and are able to save $5,000, you are actually much better off then the other guy.
Unfortunately, many people can't afford to save a dime. You might feel like you could never have any sort of wealth, and you won't if you don't change. You have to find a way to make more money and spend less money. I never said it was easy.
You also have to consider where you put this money you save. If you save $4,000 a year and hide it under your mattress, yes, it will accumulate, but very slowly. After 40 years, you'll have $160,000. Aside from a lot of money not being safe, you'll be giving up a lot of money by not investing it. Invest it in an 8% yielding investment every year and you'll have about $1.1 million.
You have to invest your money. As long as you are 20 or more years away from retirement, you must invest in stocks. Bonds just won't earn you the same kind of return. At best, with bonds you can beat inflation, but you really can't expect much more.
Whether or not you believe it, you can become rich. Set goals and make a plan. It might take you years and years, but if you work hard, you can achieve the riches you may have only dreamed of. Don't give up without even trying. - 2364
You might agree that being rich with friends, family, and love is very important, but let's just consider monetary riches for now. What does it take to be rich? How much money do you need to have? When can you finally consider yourself a 'rich and wealthy' individual?
When you were a kid, having $100 probably made you feel rich. Right now, $20,000 seems like a lot of money, but for many, this would not last entire year.
You might think of rich as someone who has a nice new car, a big beautiful house, and is able to retire comfortably at age 65 and take frequent vacations. Another person might think you have to have $1,000,000 in order to be rich. You could live like this or even save up $1,000,000 over time.
You can be rich, but the degree to how rich you can be depends on your age, how much money you make, and how much you can save. If you are in your 20s and make enough money to put several thousand dollars a year into a retirement account, there is no doubt you could retire by age 65 if not earlier. Saving more money will get their quickly as will having a high return. Put both together and you're savings will be unstoppable.
Another deciding factor is how much money you make and how much of it can you save. If you make over $100,000 a year that's great, but if you can only afford to save $500 a year, your salary does you no good. You have to cut your expenses so that you can save more. If you make $40,000 a year and are able to save $5,000, you are actually much better off then the other guy.
Unfortunately, many people can't afford to save a dime. You might feel like you could never have any sort of wealth, and you won't if you don't change. You have to find a way to make more money and spend less money. I never said it was easy.
You also have to consider where you put this money you save. If you save $4,000 a year and hide it under your mattress, yes, it will accumulate, but very slowly. After 40 years, you'll have $160,000. Aside from a lot of money not being safe, you'll be giving up a lot of money by not investing it. Invest it in an 8% yielding investment every year and you'll have about $1.1 million.
You have to invest your money. As long as you are 20 or more years away from retirement, you must invest in stocks. Bonds just won't earn you the same kind of return. At best, with bonds you can beat inflation, but you really can't expect much more.
Whether or not you believe it, you can become rich. Set goals and make a plan. It might take you years and years, but if you work hard, you can achieve the riches you may have only dreamed of. Don't give up without even trying. - 2364
About the Author:
Learn more about how to become rich and where to find save money tips, learn more from Samantha by visiting her website at the links above.
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