I am writing again. I have not been writing for a while.
I want to explain the things that I know. Easier said than done. Here goes anyway. START SAVING 10% OF WHAT YOU EARN. This is of course for those of you who are not in an income crises. You also have to be out of debt. Once you do that, you open up the door of opportunity. You can and will become wealthy. Defining wealthy also is something you have to do. My idea of wealthy is different than most peoples, but that does not matter.
Saving ten percent of your income is so important. This enables you to make money off of your money. It is easier than you think. People avoid investing because they do not know enough about it. Learn about it! It is so much sweeter to make money off of your money than to have to trade your time (working) for money. Time is more valuable than money. You can always make more money, but you can not make more time.
Start your Roth IRA today. You only need to start the Roth, because once you have the account open you will want to put more money into it. It also acts like a savings account. You may withdraw your deposits penalty free after having them in there for five years. This is a very big advantage for a lot of people with low incomes.
You will see your money grow right before your eyes. Plant a garden in your backyard. Nobody stands and watches the tomato plants grow, but you know they are growing. The same thing happens with your IRA. Your money grows slowly but surely. You will have to tend your garden. I mean add a little money here and there or buy/sell a stock or bond. It beats shoveling rock on a roof in the summer heat. Work at it and you will get better.
Can you live within your means? A budget is a valuable tool for this. Budgeting is a beautiful thing when you take the time to do it. You will never get ahead financially if you are not tracking your money. Track and budget. Everybody spends more money than they have to. We pay for convenience. Be patient. We pay for comfort. Be uncomfortable. We pay for entertainment. Entertain yourself. Parks are free. We pay for fitness. Go running. Exercise does not cost a thing. There are soooooo many things that we buy that we do not need. Being on a budget makes us think about those things we are spending money on. Be happy with what you have, and figure out what you do not need. Then, put some money away for yourself. Roth IRAs are the best saving vehicles out there. If someone tells you otherwise, tell them they are wrong.
Start investing. Open that Roth IRA (Individual Retirement Account) this week..