To be an investor, you must also be a saver. And saving requires spending less than you earn. So, the first step to becoming a successful long-term investor is understanding and controlling your spending habits. It’s easier than you think, and here are a couple of tips you can literally take to the bank.
List your recurring monthly bills – think mortgage, cable, cell phone, insurance payments, utilities, gym memberships and transportation.
Track your other daily expenses over the next month to get a feel for where the rest of your money is going. Groceries, shopping, gas, eating out, entertainment… you get the picture.
If you find that you’re spending less than you earn, you might still discover ways to spend even less. If you are spending more than you earn, we can help you prioritize and strategize ways to tilt the spending-versus-earning seesaw in your favor. We’re always available to assist with managing your spending, saving and then finally investing for the future.
Make it easy on yourself: Setting up your savings so that they flow automatically from your paycheck into retirement or long-term investment accounts is a great shortcut.
Set an investment goal for your savings. We recommend that investors who are not in retirement put at least 10% of their income (including any employer match) toward their retirement.
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