Many pine for the freedom that comes from financial success. But how to get there? It’s not as hard as it seems. Try on these Ten Success Secrets of the Self-Made.
- Avoid Debt. Want to be a slave? Borrow money. The bank or lender will own you. You’ll be working for them to pay that back and they will be the ones getting rich.
- Live Below Your Means. This is just math. If your income is less than your outgo, then you’re right back in debtor chains. If you can’t pay cash for it, you can’t afford it.
- Invest Prudently: Follow steps one and two and you’re going to have a little extra. Don’t just put it in a savings account and don’t chase wild returns on risky investments you don’t understand. I like real estate, but it’s not for everyone. Invest with discipline and regularity.
- Own a Modest Home: Borrowing to buy a house is nearly unavoidable. But never get more house than you need. This flows logically out of the need to avoid debt, live below your means and invest prudently. Never consider your house to be a core investment. Your home is a wonderful consumer purchase that unlike most such purchases, will maintain its value. But it’s not a substitute for prudent investing.
- Track Investments: Set it and forget it is the wrong approach here. You may have payroll deductions going into a 401K. That’s great. But you’ve got to be engaged in managing your investments before avoidable fluctuations wipe you out.
- Drive Modest Cars: For the same reason you live in a modest house. The difference now is that you should pay cash for your cars as soon as possible. Getting your plan right between your home and automobiles is key to financial independence.
- Focus on Attainable Goals: Set clear goals for your career and investments and make sure your spouse is on board.
- Focus on experiences over stuff: Life can’t be all work and no play. When you need a reward, consider experiences instead of stuff. Possessions have to be maintained and sometimes insured. They are a responsibility that can add clutter to an already complicated life.
- Marry a Like-Minded Partner: Love is grand. Divorce is about $100 grand. Toiling away at a great plan is easily defeated by a spendthrift spouse. If you’re not in this together, you’re not in this at all.
- Make Financial Security a Priority. This is going to happen magically or on its own.
None of these steps are hard to understand. The implementation just take a little time and discipline. Get busy and watch your nest egg grow!