money-hacks on Nostr: Simple wealth building formula below In order to build wealth - you need to commit ...
Simple wealth building formula below
In order to build wealth - you need to commit yourself to a time tested path of spending less then you make
This might require you to make certain sacrifices but it is the end result that we are interested in
And remember - WEALTH is a journey rather than just numbers in your bank account
Before starting to build your wealth - decide why do you want it
Is it freedom, not having to work or maybe you want to volunteer more?
Build yourself a plan and turn it into a simple path that you will be able to track and adjust against
Use one of time tested budgeting methods - 50/30/20 is a great example of it
Your disposable income is spent:
50% needs
30% wants
20% investments
You can adjust these numbers to suite your specific circumstances
When it comes to investing part - do it in a simple and boring way, the results will normally be the best
Don’t trade individual shares frequently - instead buy and hold broad market tracking index funds
Vanguard and their low cost structure is my choice - $VUAG is what I use
Once or twice per year track your performance vs your long term goal
As the time progresses - evaluate your performance vs long term goals and the small steps you have planned to help you get there
Course correct and don’t be afraid to change your plan if you see that the current path is not getting you to your long term objective
https://money-hacks.co.uk/index.php/2023/04/23/what-is-the-50-30-20-rule/
In order to build wealth - you need to commit yourself to a time tested path of spending less then you make
This might require you to make certain sacrifices but it is the end result that we are interested in
And remember - WEALTH is a journey rather than just numbers in your bank account
Before starting to build your wealth - decide why do you want it
Is it freedom, not having to work or maybe you want to volunteer more?
Build yourself a plan and turn it into a simple path that you will be able to track and adjust against
Use one of time tested budgeting methods - 50/30/20 is a great example of it
Your disposable income is spent:
50% needs
30% wants
20% investments
You can adjust these numbers to suite your specific circumstances
When it comes to investing part - do it in a simple and boring way, the results will normally be the best
Don’t trade individual shares frequently - instead buy and hold broad market tracking index funds
Vanguard and their low cost structure is my choice - $VUAG is what I use
Once or twice per year track your performance vs your long term goal
As the time progresses - evaluate your performance vs long term goals and the small steps you have planned to help you get there
Course correct and don’t be afraid to change your plan if you see that the current path is not getting you to your long term objective
https://money-hacks.co.uk/index.php/2023/04/23/what-is-the-50-30-20-rule/