What it takes to accumulate wealth
This is a great article I would encourage everyone read it
and tell every millennial they know to read it also.
I help people of all ages with their financial
planning and sometimes people want to compare themselves to others. They will
make excuses for not doing what they need to do with comments like “it is easier
for so and so because his parents are rich and my parents were poor”. I don’t like to compare individuals because everyone’s
circumstance is unique and everyone is only responsible for their own plan.
What I will say is that while there is no disputing the fact that somethings
may be easier for the child to the extend wealthy parents give their children
more money that is the least important thing they give their child in determining
how well the child accumulates and grows their own wealth.
The most
important thing they do is teach their child how to grow their own wealth along
with leading by setting a good example. I know people that make lots of money
every year and accumulate no wealth and I also know lots of people that make
very little money that manage to accumulate wealth.
It all has to do with learning to
pay yourself first. Anyone that
practices that concept will accumulate wealth. I write these article because
I want to spread the word that it is really easy to accumulate wealth if you
just exercise a little self-control, consistently put money aside and then
invest it properly. My Grandmother and my father understood the pay yourself
first method and taught me that. Unfortunately they were not very good at
investing and the only stock they ever owned was from employee stock purchase
plans. I was lucky as investing was always an interest of mine and I had a
knack for It. As soon as I turned 18 I opened my first brokerage account and
bought my first stock. I learned at a young age the value of investing wisely and
the importance of maximizing the average cumulative returns on your investments.
I eventually taught my Grandmother and Father to invest in stocks and their
nest eggs grew considerably faster over the years. So it is never too late to
learn.
The earlier you start saving and investing the better
and knowledge of this is the biggest gift many wealthy (and some not so
wealthy) people pass on to their children. So
the sooner you start the better, but starting late is better than never
starting.
I like to think I taught my son well and I am
confident he is doing a good job with his own financial planning. Some people
would say “I taught him everything he knows” but that is wrong and I would have
failed in my mission if everything he knows came from me. I did try and teach him
everything I know, with the most
important thing being have a plan, spend some time updating the plan and never
stop learning. Now, he like many people I have helped over the years, occasionally
makes me think of things from a different perspective and they even teach me a thing
or two. Every teacher’s goal should be learn something from their pupils. It is
good to talk to others and hash out your plans.
My articles are not intended to teach you everything
you need to know but they are meant to inspire you to put together a plan. I
hope you will help me to spread the word and spark interest because too many
people do not have a plan in place. So if you are reading this hopefully you
have started your plan or are at least realizing you need to start one. If you
are older and just starting congratulations, but know that you can help the
young people you care about by spreading the word about how important this is
and the sooner they start the better. If you are younger and did not learn the importance
of this from you parents, try to teach them the importance of this. It is never
too late and the old can learn from the young. You probably taught them how to
use their computer and smart phone so you can probably teach them about this
also! Don’t be afraid of or ashamed to
talk about money.
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