Eat Your Spinach
Chapter 8: Eat Your Spinach: Act Now
Here is our condensed advice. Follow the guidelines below to wealth
and happiness by starting to save and invest early in life, or trust your
future to luck and an uncaring world.
Save and Invest Now
Do a budget - Itemize your income and spending.
Review your budget every few months.
Save before you spend - Make savings your number one
priority. Control your spending – do you really need all that stuff?
Pay off credit cards each month - do not accumulate a running balance.
Save as much as possible - Save at least 10 percent of
your income, more if possible. Save your salary and wage increases.
Start saving at a young age - Let compound interest work
for you. The longer you can accumulate money, the more you will have.
Save regularly and automatically - Put your savings on
automatic pilot. Set up automatic transfers from your checking and savings
accounts to your retirement accounts. Keep some cash in a money market
account or certificates of deposits.
Set up retirement accounts - Tax shelter your retirement
nest egg to increase your returns. Set up automatic transfers from your
pay check into your retirement account. Save the maximum allowed by law.
Do not borrow money from your retirement accounts. Use a full-service
or discount broker.
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More
in this chapter:
Accumulate Wealth
Sound Investments at Any Age
Long-term Investments
Short-term Investments
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TOC Chapter
1 Chapter 2 Chapter
3 Chapter 4 Chapter
5 Chapter 6 Chapter
7
Posted May 13, 2008.
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