We focus a lot in Internet marketing on ‘how’ to make money, don’t we? But then its rare to ever get any advice on what we should do with the money we do make, so what do you actually do with the cash you’re earning online?
The most important advice I can offer you is to start investing as early as possible and don’t stop because the longer you wait to begin saving and investing, the harder it will be for you to reach your financial goals and retire in wealth. (Some of us never manage it)…
Compound Interest
I’ve always found compound interest to be a particularly interesting subject, (OK I know I’m a tad sad). Thanks to compound interest, when you begin investing early, your investments grow much more spectacularly than when you start late. For example, a person who places $2000 a year in an investment fund starting at age 18 can retire with double the savings of someone who starts investing just 10 years later.
No matter how old you are you should begin saving and investing as soon as you possibly can if you haven’t already. Make it a rule of thumb to invest at least 10% of everything you earn, right off the top. It’s called paying yourself first.
Lower your expenses. Don’t buy that new car if you don’t need it. Your current car might be good enough for another year or two or even more. There’s nothing wrong with driving a 5 or 10 year old car and using the money you would have spent on a new flashy car to instead invest in your retirement. I was driving a 10 year old car up until a year ago and I had to be dragged kicking and screaming by my husband to buy a new one. I only complied because things were starting to go wrong with it. (I loved that shabby old focus)…
Thinking of buying a bigger house? Think again. If your current home is large enough, why not invest your money into your future, instead of trying to impress your friends with a big house you don’t need? We’ve lived in the same semi detached house ever since we were married and discussed countless times when we were younger about moving to a larger house. (We never did). I love my home and it’s always been exactly the right size for us. Believe it or not, loads of millionaires don’t live in mansions – they live in the house next door. You just never realize how rich they are because they’re smart enough to invest their money rather than flash it around with expensive toys that lose their value the moment they leave the showroom or store.
And one more thing – who has more stress? The person with the big house and the big mortgage? Or the wise person with the small house, no mortgage and a big bank account? (Think about it)..
Be good to yourself by investing in your future. You deserve no less. We did and we’re really reaping the benefits now we’re older..
