A Summary Of Our Best Money Advice
We are always thinking of ways to help you do better with your money, so we’ve compiled our best advice on how to do well financially. Call it our Money Cheat Sheet, a simple list of great money advice for your benefit. You’re welcome.
1. Invest 20% of your salary.
Members of our investment club have heard this rule a lot; always put away 20% of your earnings and invest it. You will not work forever, so it is very important to put money into your investments that will compound over time. Many people advise that you put off investing until you are making a lot of money but we don’t think so. Start from your very first salary and put away 20%, if you cannot start at 20%, then start at 5% and increase over time as your earnings grow. Our build wealth plan helps you save for your retirement and it’s built in a way that considers your future earning potential.
The best time to start investing was yesterday, the second-best time is today. Investing early will help you build capital to take advantage of opportunities, start new businesses or retire comfortably.
Tip: Before you start investing, have an emergency fund for when life happens so it doesn’t interfere with your investment plans.
2. The Best Way To Invest is Long Term
There will always be a good reason to not invest — you’re not making enough, the market is down, the wrong person might get elected, you really need the money, the list goes on. But the benefits of investing outweigh your current excuses. Everyone should treat investment like a monthly expense and focus on doing consistent investments for a really long time. Ignore the ups and downs of the market. Ignore the short term fluctuations. Pretend the money you invest no longer exists, don’t break it for your expenses unless it is the absolute last resort. The beauty of investments is that small amounts will compound over a long time into huge fortunes, as long as you don’t interrupt the process.
With investments, it takes at least three to five years to start seeing the best results and studies show that most people’s best investment returns happen when they invest and “forget” for long periods. So, stop thinking short term and invest for the long haul.
3. Stay away from consumer debt
This is a rule everyone should take seriously. Debt is good if it is used for business or used to finance trade and will generate the returns used to pay it back. But using debt for consumption, that is using it to finance expenses like buying clothes, shoes, food, rent and so on is always bad news especially if the interest rate is high. Unless it’s for a business or it’s absolutely necessary, please avoid personal debt.
4. Buy most of your staples in bulk if you can afford to.
Dry foods, canned foods and commonly used condiments, house supplies and all that. It’s cheaper and better for you given the current uncertainty around price increases. It also helps you plan and budget for them better.
5. Invest in yourself
Your greatest asset is you. Unless you’re on track to inherit millions, your earnings power is probably the best source of wealth creation for you. You need to invest in learning more skills, make sure you’re being paid your full worth, apply for a raise, push for a promotion, and take on new roles to earn more. Find all opportunities to increase your earnings power.
If you can do all these you should be on track to be among the more financially successful people around. This is the essence of Rise’s mission and we absolutely cannot wait for you to achieve it.
Don’t forget to download and start using Rise to get your investments growing in dollars and getting superior returns. Go to www.rise.capital to get started.