Consistency matters. Consistent savings, even of small amounts, add up to big gains over a 40 year horizon. So get in the HABIT of savings.
Automate, automate, automate. Your retirement savings, your liquid savings, your insurance premiums to ensure continual coverage.
Be willing to buy less than the "best." Invest or save the difference. For example, my brother was recently replacing his Mac. The new iMac ranged from $1200-$2000. Frankly, for email and net surfing, the $1200 was more than sufficient. He was fearful that it wouldn't be "good enough" - and his fear, even though he could describe NO activity in which he needed a larger screen or faster processor, almost propelled him to spend more than 50% higher than needed. I encouraged him to buy the $1200 version, he's already produced a couple of picture CDs with soundtracks, and everything is fine.
Rich people are willing to DELAY gratification. You pay a premium to be the first on the block to own anything, or to over-spend. We waited for 8 years to re-do our kitchen, paid cash, and are very glad we did so, instead of taking out a home equity loan (how a friend, under threat of layoff, paid for his kitchen remodel).
Pick your life partner wisely. Divorce is expensive, and threatening to your long-term net worth.
Sandi
|