Take these smart steps to increase your net worth, the real measure of wealth.
1. Build equity by owning your home instead of renting.
2. Live beneath your means and save regularly.
3. Invest a significant percentage of those savings in a diversified portfolio of high-quality stocks.
4. Put money into tax-advantaged vehicles like IRAs and 401(k)s.
5. Minimize your investment costs with discount brokers and no-load funds.
6. Let your money compound as long as possible.
If you are not on track to achieve your most important financial goals, you have 3 options:
1. Earn more
2. Save more or
3. generate a higher return on your investments
All the above are proven principles of success. Principles apply to everyone and not just to members of certain groups. You do understand that you have the power to take charge of your financial destiny. It begins with understanding that investment success is not about following the right predictions but following the right principles.
Sven Franssen