Increasing your savings, making more money and amassing wealth can have a huge impact on your personal finances. Your wealth can allow you to buy things that bring you joy, experience incredible vacations and create more free time for yourself. For some people, building wealth isn’t just about personal enjoyment. It is about leaving a legacy for your family.
I recently sent a letter (yes, a real letter) to my 20-year old nephew encouraging him to start saving for his retirement today. With time and compound interest on his side, his options are endless. In order for him to reach financial independence, he’ll need to invest and adopt some crucial money-smart habits early on in his life.
Cross your fingers for me that the message resonates with him!
When I started my new job in 2013, I immediately signed up for the company 401k program and maxed that baby out. CHECK!
For the last two years, my wife and I have both maxed out the contributions on our Roth IRAs. DOUBLE CHECK!
We’re hopeful that this diligent tax favored savings plan of ours will pay dividends (literally and figuratively). Our overall balances have been growing steadily in this bull market and we’re in it for the long run.
But … Now what?
When I read the Total Money Makeover* by Dave Ramsey in 2011, I knew going through all of the 7 baby steps could take quite a while. The book’s structure of saving money, paying off debt and investing was simple and easy to understand, but it definitely had some years attached to it. This was not a “get rich quick book” for sure. Nevertheless, I was intrigued and inspired to follow Dave’s 7 steps and see where it took me and my new family.
Last month, I laid down a challenge for my Marriage, Kids and Money friends to get their last will and testament in place. Since my wife and I had gotten our wills set up last year, my end of the challenge was to investigate if my family needed a living trust.
Here is what I learned:
Over the last year on my podcast, I’ve had the pleasure of speaking with a collection of millionaire entrepreneurs, early retirees and personal finance experts. These conversations have allowed me to learn, grow and inspire others to win with their finances and create a better future for their family. After each episode, I share a quote that motivates me and the listeners of the podcast to take action.
Real estate investing has been something I’ve been interested in for a long time. The ability to own a home that provides a monthly passive income and grows in value at a consistent rate over time sounds quite appealing to me.