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!
This year, I’ve read more books than I ever have in my whole life. My desire to learn, grow and make myself a better person has propelled me to crack open (or listen*) to a new book at least once a month this year.
So, I’ve read my fair share of books. Pat myself on the back, right?
Wrong. (Use your Trump-voice, “Wrong.”)
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?
Reaching financial independence takes a whole lot of drive and determination. It definitely does not come to us overnight. There are difficult steps that we must take to earn the truly awesome rewards that come with owning our own time and choosing the direction of our day.
One of those major milestone steps is escaping the grips of student loan debt.
There have been lots of discussions around the Hill House lately about investing in rental real estate. Both my wife Nicole and I feel like it would be an excellent way for us to build passive income and wealth for our family.
Billionaire Warren Buffett once said, “Never depend on a single income. Make investment to create a second source.”
All of the entrepreneurs I’ve interviewed on my podcast (or really any other podcast for that matter) have taken Mr. Buffett’s words to heart. If you’re going to create some serious wealth for you and your family, diversifying your income streams is the key to success.