Building Wealth – HumbleDollar

Read these tips for building a better financial life.

Yes, you can!🤑

I’VE BEEN READING about how people aren’t saving enough money, and how almost half of all Americans carry a balance on their credit cards. Looking to be more financially prudent? Here are 10 pointers on how to build wealth and gain financial security over your lifetime:

Source: Building Wealth – HumbleDollar

One comment

  1. Thanks for posting this.

    I agree with all 10 pointers with one exception. Numbers 2 – 10 are OK. Some minor quibbles – #2 – if you invest in stocks, consider stock indices unless you are ready to invest significant resources in evaluating opportunities; #3 – Save up includes saving up for college, or working while attending college, or a period of military service, etc.; #7 No, check on your investments at least annually. Remember that a short term market decline may be a buying opportunity. Regardless, periodically consider rebalancing your account to your target investment allocation;

    However, #1 leaves something out for everyday workers. First, #1 should include securing employment with an employer that sponsors a retirement savings plan – access is valuable.
    Further, I would change #1 to borrow something from #4. My experience is that for many, perhaps most workers, our financial needs and goals are numerous, and that many times, the aggregate of needs and goals exceed our ability to set aside money for each specific item. And, figuring out how much to set aside for each need, how to invest that money and choosing the just right savings instrument is a lot of work … and a challenge, not just in setting up accounts, etc. but in annually updating to check on progress.

    So, as suggested in #4, let your savings do double duty, triple duty, quadruple duty, etc. Save up as much as you can. Remember that some of your needs and goals won’t come until a future date. Then, leverage your 401(k)’s loan feature to save up, get the match, invest, borrow to meet the current need, continue contributing while repaying the loan, rebuilding the account for a larger, future need. Repeat as necessary up to and through retirement.


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