Many people want to know how they can invest like a rich person, yet those same people simply don’t think they can do it themselves. Although you may not think you can invest like the rich, below I’m going to show you how this is possible beyond your wildest dreams.
First off, believe it of not, you have at your disposal the means and resources with which to begin investing. For example, if you ever made a decision to purchase your own home, that’s all you need to start investing. Right now you can find the money you need to begin investing WITHOUT changing your lifestyle.
For example, here’s one very simple example you can use today to get you started along the road towards investing. If you spend money on entertainment, then instead of renting a DVD from an interactive kiosk, such as RedBox, call at your local library and get a movie for free and save yourself a dollar. You can apply the same principle in countless other small ways which enables you to save small amounts of money incrementally without ever needing to make any changes to your lifestyle.
And here’s another useful way to save even more money to begin investing. If you use electricity at all, air seal your home and install a controllable thermostat to see a big reduction in your energy costs. Again, bank or save the difference.
Here are FIVE easy steps to grow rich through investing:
1. Join your employer’s retirement plan. Your employer will likely contribute to the plan if you do so, too. Retirement plans are extremely tax efficient and reduce your income tax at the end of the financial year. If you decide not to take advantage of your employer’s retirement plan, then basically, you’re on the road to poverty. It is important as that!
2. Start a Basic Saving Plan. If you manage to trim your spending by roughly 25% per day, then transfer what you save into a savings account each week. Keep the deposit periods short, for example, every week instead of every month, then you’ll not be tempted to spend this extra cash-in-hand. Even if you manage only to save $0.30 per day, that equates to roughly $10 per month, or $121 over the year which, of course, you will earn interest on.
3. Put “one-off” savings into an account. If by chance you make a one-off saving, for example, if you save considerably on a reduced price special offer whilst doing your weekly shop, don’t be tempted to spend it frivolously on something else. Put that, too, into your savings account. The same goes for any surplus earnings resulting from a bonus or overtime. put this one-off saving into the same account.
4. Save windfalls and avoid spending them. Say for example, you come into some inheritance, receive unexpected monies, or you get a settlement, perhaps on a loan, or you gain some winnings on the lotto; by all means, treat yourself to something nice, however, don’t be tempted to blow the lot on something frivolous. Put most of these unexpected gains into your savings account.
5. By a Certificate of Deposit with your savings. Once you’ve saved the bank’s minimum for purchasing a Certificate of Deposit, this will earn you a preferential rate of interest on your balance. However, you won’t be able to get access to your money for a defined period of time. But that’s okay, you weren’t intending to spend it anyway.
Congratulations, now you can hold your head high and say you’re an Investor. Whenever your Certificate of Deposit matures, add it to any other savings you’ve made, or you Basic Savings Account (Point 2), then start looking toward making other investments.
So now you know how to invest like a rich person. And if you ever wondered what’s the difference between the rich and the poor. Quite simply it’s this: “The Rich Buy Assets (such as Investments which make money). The Poor Buy Liabilities (Liabilities cost money which depreciate in value).”
Begin now collecting your portfolio of assets and watch yourself grow rich!