Strike It Rich With These Six Steps From A 23 Year Old Who’s Already Done It!
Think you need a wealthy Uncle Bill to set you on the road to Richville? Think again. Just a buck a day and a bit of know-how will have you raking in the cheddar.
Suffer from SBA (Sad Bank Account) syndrome? Join the thin-walleted club. Getting your hands on money can be hard enough, but keeping it? Good luck with that.
What if we told you that saving only a dollar a day could make a difference? You see, in ten years that dollar could render you a minimum of $3,650 from savings alone. You could easily double or triple that number by investing $35 a month and sticking to it for six years. Think it’s impossible?
Enter 23-year-old Lesley Scorgie, author of Rich by Thirty: A Young Adult’s Guide to Financial Success. Thirteen years after her initial investment at the age of ten, she’s two years away from becoming a member of the illustrious Millionaire’s Club. (And yes, you read that right.)
Need advice on how to get started? Here are Lesley’s top tips:
1. Save a dollar a day—or $35 a month if you can swing it
“Teens have a hugely disposable income since their parents take care of the household bills,” says Scorgie, “so coming up with $35 is pretty doable—it just means cutting out something small, like, maybe two pizzas a month.” Her advice: Take that money and set up an account now—don’t wait. “The longer you put it off, the less wealthy you’ll become.”
2. Recruit your parents
Want to double up on your investment? Ask your parents if they’ll match whatever you’re investing for the first year. If that won’t fly, even asking them to kick in an extra $20 a month will make a difference in the long run.
3. Forget about debt
“You’re always going to have debt in some form, so rather than putting off investing until you’ve finished paying off that credit card, pay what you can on it now, but make sure you’re putting money aside into your savings account. Planning for your future should always be your biggest priority.
4. Do like the rich
Ever wonder why the rich get richer? First, they spend their money wisely. They invest in good quality clothing, buy things on sale and bargain shop. Second, they invest in their future. They pay themselves before they pay off debt, pay for dinner or spring for a new pair of jeans.
5. Invest, invest, invest
Sure, putting your money in savings is better than nothing, but if you really want to maximize your cash, look to investments. For example, let’s say you contribute $35 a month from the ages of 16 to 22. Tack on interest at a rate of one percent, and your initial investment of $2,940 jumps to $3,059.98—an increase of $119.98. On the flip side, let’s say you invest that same amount at a rate of 8.5 percent. The number suddenly jumps to $4,128.87—an increase of $1,0068.89 in the same amount of time.
6. See a professional
Clueless about how to start? Book a date with your local bank and their experts. They offer free advice on ways to begin and can help you assess how much of a risk you’re willing to take, how to divvy up your savings, and what investment options to consider (e.g. savings accounts, mutual funds, stocks, bonds, Treasury bills, etc.).
Written by Liz Bruckner