Buying stocks for the long term will set you up for the future. Here are 3 tips how to handle money that will serve you right:
1. Avoid debt at any price
There are only 2 reasons to take on debt: to buy real estate and/or to start a business. If you want a better, sustainable future in the long run, you are better off to take on some short-term discomfort. If you already have debt, make sacrifices to pay it down as fast as possible. The sooner you’re not paying interest to a bank or your credit card company, the sooner you can invest for your future.
2. Invest in your retirement account
This is a must do. Investing in your retirement account not only helps you secure your future but also gets you tax breaks so your taxes will be lower today. If your company has some tax saving plan where it matches your contributions and you are not participating, you are rejecting free money.
3. You can’t get rich quick, but you can get rich slow
Being lured in get-rich-quick schemes are often good ways to get poorer. Avoid this at any circumstances. In fact, if you invest in quality stocks or index funds for the long term instead, you can get rich slow. But most people don’t have the patience to do that. The stock market goes up over the long term, and if you’re able to put some money away on a regular basis and invest it sound and properly, you will be way better off. But most people don’t have the patience to do that.
Stick to a plan that has worked for generations of investors. It is a proven recipe.
Sven Franssen