VIDEO ON MSN MONEY
Pretend you are poor from the day you start working. Do not be envious of people who flaunt their wealth--they most likely are living from paycheck to paycheck, in debt.
Save, save, save. Live below your means, and do not use Credit Cards.
Financially well off people look for values, study investments, and are cautious about saving a dime.
I practiced this advice (well before the article was written) for 30+ years and was able to retire at age 50 in 2010! I (we) did not inherit a fortune, we just lived below our means, paid for kids college (we also invest in the grandkids college) and invested wisely.
The dream is still there if you embrace (live) it. Don't let the media scare you, just be your own. Good luck........
Pretty solid advice for basics. I dive into individual stocks and options which is fine if you have the time to do research but I do a good portion in index funds as well to stay balanced.
One thing I would add. "8. Pray that the government doesn't turn around and punish you for your good bahavior." Unfortunately in an effort to help people that CAN'T save, we spend an awful lot of money on people that just CHOOSE not to save and live beyond their means. There is more than one idiot on capital hill that would steal your retirement accounts and "invest" them for you. Scary stuff but you can't let fear stop you from taking charge of your financial future.
Fairly good advice....For people of a younger age...
Many should remember there are plenty of other investments or wealth builders, besides stocks.
And starting as young as possible is a great idea...But don't forget to live along the way.
Be tax adverse as much as possible 401s, IRAs, ROTHs etc...
There will be a time to pay the taxes later.
Pay attention to your investments, get the biggest bang for your buck.
Learn about investing and financial matters, to possibly do the work yourself in retirement.
Research, Re-allocate, Re-balance, Diversify and try not to be, too emotional about investing.
I do all of these things plus more. I will could retire today at 53, but will keep working for another 15 years.
Here is one I would like to add! Buy a house below your means. You will save in Mortgage payment, utilities, insurance, cleaning and upkeep!
Invest what is left over
Many good comments here already. I will add only a few thoughts beyond the regular saving, buy less, postpone spending on 'stuff'. Read, read, read. Yes, investing is a skill, but one that can be learned. If you are not willing to work at it, avoid get rich quick schemes--the new latest best thing--and go with Index funds both on the equity (stock market) and fixed income (bond) side. Watch out for initial purchase costs as well as commissions. Stay away from the investment talk shows on TV--Cramer, etc.--there may be one good idea buried in all the hype, but it is unlikely you will find it easily.
If you are willing to work, read Buffett and his partner Charlie Munger, and the others who have been successful over the very long term. First principle, think about the downside, not about how much you 'could' make. Read folks with opposite views, contrarian thinking, to the headliners in the news or on TV and the 'net'.. Pay attention to the businesses you like, the established ones and the up and coming ones. Ask yourself why you like them, do others like them. And finally, KISS, so you know all the time exactly if you are achieving your goals or not. Much confusion arises from a scatter-gun approach rather than keeping to a defined strategy!
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