BUILDING WEALTH ONE CHANGE
AT A TIME
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| SAVING AND INVESTING are both integral parts to building wealth.
Pay yourself FIRST - twelve percent, yes 12% of your gross pay (if you're over 40 and haven't saved a dime, you better shoot for at least 20%) If you make $300/week at 12% that's only $36. DO IT! Do it every week (or each pay period).
If you want to open a mutual fund or money market account some require a minimum balance of $1,000 for IRA's Traditional or Roth accounts other may require $2,500 or more. You can start with no minimum balance at Emigrant Direct or HSBC Direct. They also have great rates on savings and CD's. Sometimes it's easier just to set up an automatic deduction from your checking account into your banks savings account. Be sure to ask your bank about any specials they may be running.
Help your children - go to the Kids page
"Most people fail to realize that in life, it's not how much money you make it's how much money you keep." Robert T. Kiyosaki Rich Dad Poor Dad Learn More on the WEALTH BUILDING PAGE SAVINGS Start building wealth with high yield (HY) savings accounts. Normal accounts (usually where you get your checking account) have very low interest rates that they pay you for the money you place in their care. It is pays more than your checking (which is usually zero) and it is safer than your under mattress or in the freezer. HY accounts (generally available online only) normally pay much higher yields (hence the name High Yield account). Right now your savings account may be paying you .25% to .49% (1/4-1/2%) where as a HY account may be paying between 2%-3%. If you start with $5,000 at .25% at the end of one year you'll
have earned $12.51 Use this handy calculator to figure out how much you need to save each month to reach your savings goal. For example, if you want to save $5,000 in three years you would want to put away $127/month at 3%. That would be $4.18 per day - less than a single trip to your favorite coffee shop. It is definitely worth it to open a high yield savings account - especially for your emergency fund and/or your longer term savings account vs. keeping the money in a standard savings account. Many have no minimums, some have a higher interest rate based on your balance, most do not charge account fees. Try one of these:
www.fnbodirect.com Mutual Funds Mutual funds are great if you're new to investing. There are fund managers that will select multiple stocks, bonds, and other investments based on a particular criteria so that you can be more diversified than picking a single stock. How do I pick a brokerage and select a fund? Investing 101 T
Rowe Price Stocks Individual stocks may be a bit tricky for a new investor. How do I buy my first stock? Investing 102 Zero
Dollar Trades if you maintain $2,500 balance at www.zecco.com.
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