Tuesday, December 12, 2006

10 Rules for Building Wealth

This was taken out of a CNN article:

1. Starting early: I started investing when I was 20, but I failed to continue. Luckily I saved up $1,000 in my IRA.
2. Use your 401k: I had over $3k in my 401k, but when I left my old job, I need the cash and cashed out. Bad mistake, now my current job does not offer me a 401k because I'm only a temp. I'll have to wait until I get my "real" job.
3. Keep it simple: I'm currently investing in ETFs, makes everything easier.
4. Don't try to beat the market
5. Don't chase trends
6. Make saving automatic: I currently have 2 savings accounts that have automatic deductions from my checksings each month.
7. Go heavy on stocks: My portfolio is super aggressive.
8. Hold down fees
9. Ditch credit card debt: I'm currently trying to get out of debt. I started my Debt Mastery Plan and based off the computer software, I should be out of debt in 5 years.
10. Defer taxes

6 out of 10. How do you rate?

You can read the full story at cnn here

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