To prosper in life you have to work hard and make sacrifices according to my mom. By putting her words in action I’m starting to see great results. But the one thing that’s tearing me apart is that she is not around to get compensate for all she has done and taught me. We are not going to get into that now, may be in the future. But for now let’s get back to that boring conversation that everybody is affraid to talk about.
Finance on paper is very boring and definitely not an easy task to manage. There are lots of books and information on how to manage your hard earnings. But with two kids a full time job and side Hustles it’s a challenge. With my blog you don’t have to be a genius to figure this out as I’m going to show you exactly the pathways and step by step.
It’s a process I’m probably a little bit ahead of you so I’m going to make sure you guys don’t make the same mistake I made. One readers asked me what’s my goals and how do I keep up with the process. My goal is to have one million dollars by the time I turn 50 it’s a big challenge for me to be the first millionaire in my family.
I’m sure you already asking yourself how I plan on doing this. First of all I have to live way below my means and make wise decisions, take all the advantage I can get. Like the savings that’s not clear to the naked eyes, like the money I don’t see and can’t be spend. For instance I get a 3% raise every year on my 9-5 I automatically increase my contribution towards 401(K) to 1% higher than what it was last year I’m planning on doing that until I reach 10%.
One other contribution is my Roth IRA I just opened that account where I’m adding a whooping $5000 a year for the next 20 years that $100,000 With room to grow from 5 to 12%. Second, I get quarderly dividend from my investments which accumulate to be around $2000 a year. From that $2000 I reinvest $1000 and transfer $1000 to my high yield saving which is paying a generous 2% interest insured and safe from stock market turbulence. Diversification gives me a nice little cushion when things are not so green in the market.
So go ahead get yourself started if you don’t have a 401(k) set up yet check my first post. To see what you missing out. But if you do I encourage you to also get a Roth IRA and an emergency saving even if you contribute $100 a month towards them you will be in the right path. “Always remember not to spend you working hours money in minutes.” Stay tuned for more on the #process of becoming a millionaire.