If your goal is to build wealth, make sure you:
1) Spend less than you earn
Wealth is the difference between your income and expenses. It gives you freedom.
If you spend more than you earn, building wealth is impossible. If you can't build wealth, you will have to work for money for the rest of your life!
Wealth is the difference between your income and expenses. It gives you freedom.
If you spend more than you earn, building wealth is impossible. If you can't build wealth, you will have to work for money for the rest of your life!
2) Make every dollar count
Every dollar that you spend is a dollar you will have to earn again in the future. Enjoy your life, but moderation is key.
When I was younger, I didn't understand the value of money and made terrible financial decisions.
Every dollar that you spend is a dollar you will have to earn again in the future. Enjoy your life, but moderation is key.
When I was younger, I didn't understand the value of money and made terrible financial decisions.
3) Exchange your cash for assets
Inflation has averaged 2-3%/year over the last 100 years.
If you saved 1M USD over 30 years, you lost $500k in buying power (in other words, what you can exchange your money for dropped by HALF) due to inflation.
Inflation has averaged 2-3%/year over the last 100 years.
If you saved 1M USD over 30 years, you lost $500k in buying power (in other words, what you can exchange your money for dropped by HALF) due to inflation.
4) Don't give yourself easy access to cash
When I used to see money in my bank account, I would spend it on random things that I didn't need.
Now, I leave enough for expenses and emergencies in my checking account. Excess cash goes into accounts that take 2-5 days to access.
When I used to see money in my bank account, I would spend it on random things that I didn't need.
Now, I leave enough for expenses and emergencies in my checking account. Excess cash goes into accounts that take 2-5 days to access.
5) Save without a reason
I used to save only for specific expenses. Now, I save without a specific goal in mind.
Why? It gives me options when it comes to careers, investing, and relationships (I can help someone in need).
I used to save only for specific expenses. Now, I save without a specific goal in mind.
Why? It gives me options when it comes to careers, investing, and relationships (I can help someone in need).
6) Invest like your life depends on it (it does)
$100 invested in the S&P 500 in 1972 would be worth over $10,000 today. Probably 3+ years worth of groceries for a retired couple.
If you kept the cash instead, you would be able to buy a few DAYS worth of groceries today.
$100 invested in the S&P 500 in 1972 would be worth over $10,000 today. Probably 3+ years worth of groceries for a retired couple.
If you kept the cash instead, you would be able to buy a few DAYS worth of groceries today.
I'm passionate about helping more people become financially literate, but these threads take a long time to write.
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Rajatsonifinance.substack.com
Thanks for reading!
If you found value in this post, make sure you like and retweet the first tweet, and subscribe to my FREE newsletter.
Rajatsonifinance.substack.com
Thanks for reading!
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