This isn’t your Bitcoin (BTC) stash or shares of Microsoft stock, either. Create a CushionĪn emergency fund is critical to your strategy for getting rich. You’ll save more in the long run by paying off your higher interest-rate debt first, and only then crushing that house payment and any lingering student loans. While you might be tempted to accelerate paying off lower interest rate debt like student loans or your mortgage, think again. Once the debt with the highest rates is paid in full, you’ll roll what you were paying over to address the next highest interest rate debt and pay it off. With this strategy, you’ll put the maximum toward your highest interest rate debt and make the minimum payments on other debts. The debt avalanche method is one of the most popular ways to rapidly reduce interest costs and pay down high-interest debt quickly. Part of your budget must involve a plan to crush your bad debt and maintain responsible levels of good debt, like a mortgage. Not all debt is bad, but high-interest debt is downright terrible if your goal is to get rich. Then make a budget that lets you get to work. What kind of inheritance do you want to leave for your children and family?Īnswering questions like these can help you establish financial goals and decide how much money you need to save in order to fulfill your definition of rich.What does retirement look like for you? Downsizing, traveling, vacation homes on both coasts?.Do you need to save for a child’s education?.What major purchases-a second home, an art collection, a cellar full of fine wine-are you dreaming of?.To help shape your goals, here are some questions to ask yourself: No two people define rich the same way, so you should set your own financial goals and outline a plan for how to get rich on your own terms. Are you dreaming about Jeff Bezos being rich, or something more like INR 10,000 lakh in your retirement account? To get rich, you need to start by defining exactly what rich means to you.
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