7 More Money Cheat Codes
Time to up your wealth game.
Time to up your wealth game.
In case you missed it, there was a part one. It’s a good read.
Money cheat codes are the way to build wealth. This is quick hitting financial education. Little bits and pieces that took years to learn.
Building wealth isn’t a strange mystery…it’s simply good education followed by good habits.
Start investing in your company’s 401k as soon as you can. At least enough to get the match.
If you don’t have that option, then start investing in a Roth IRA as soon as you can.
The best time to start was yesterday, but the second best time is today. Don’t wait any longer.
Compounding interest over a time period of years is one of the easier ways to build wealth.
I don’t believe in paying for life insurance.
I believe in building generational wealth.
Keep building assets (stock accounts, property, etc.), and if you die, your family will have them.
Teach your spouse and children how to invest and build wealth. Because the truth is even if you leave your family a million dollars, if they don’t know what to do with it except spend it…they’ll end up poor anyway.
People love saying- “Investing is risky.”
Know what else is risky?
One 9–5 job that could fire you tomorrow
No assets (no, your house doesn’t count)
No passive income sources
A savings account that actually loses you money
Investing can look all different.
There are people making hundreds or thousands every year in stocks. That’s one type of investing.
There are people earning hundreds or thousands writing articles on Medium. That’s investing in yourself and leveraging a skill.
I know people who earn a few hundred a month on rental properties (while building equity). That’s investing in real estate.
I know people who run their own hustles (selling homemade crafts, reselling sneakers, etc.). That’s investing in owning a business.
You have to invest but do it your own way.
If you’re carrying debt with a high-interest rate (credit card debt comes to mind), do everything you can to pay it off now and/or early.
I had a car payment a few years ago that was 196/month, with 10% interest (ugh). I rounded up and paid 200/month, and even that extra 4 dollars helped.
I realized I could easily pay the 200/month, so I started paying 250/month with other little chunks thrown at it in between monthly payments. A 6-year payment plan turned into a 4-year plan, saving me a couple of thousand dollars.
Understand that savings accounts are guaranteed to lose you money long term.
Their interest rate isn’t even close to keeping up with inflation.
But, there’s also peace of mind in having cash on hand.
Find ways to build a savings cushion for the inevitable punches in the mouth life delivers. Then find ways to invest additional funds to build long-term wealth.
How to make credit cards work for you?
Treat them like cash- you don’t put more on them than you can actually afford.
You pay the balance off in full every month.
You only use 30% or less of your limit.
You get a card with points. You use those points to purchase gift cards at a discounted rate. You’ve now gotten free money twice.
Make credit cards work for you instead of against you.
CONTRIBUTED BY Cait Mack
Read More: 5 Steps to Financial Freedom