Wealth Building Lessons

1. Starting saving early. If it doesn’t hurt you’re not saving enough!
2. Never spend more than you earn.
3. Max out all your retirement plans every year.
4. Get and stay married to a sensible person.
5. Buy your home.
6. Plan far ahead for your retirement, and then stick to the program.
7. Make a plan with a reliable financial adviser. Don’t be afraid to ask for advice.
8. Make savings and financial stability more important than looking cool.
9. Adopt a straightforward investment philosophy that takes advantage of the historical benefits of investing in common stocks but balances it with bonds in a judicious mix.
10. Don’t swing for the fences. You’ll get into good retirement shape with singles and walks. Just stay even with the market and you’ll do great.
11. Always have a reserve of cash on hand so that you don’t have to dig deep into your stocks-and-bond investments.
12. At the earliest possible stage in life, learn to enjoy yourself in some other way than impoverishing yourself or beggaring your retirement plan.
13. Acquire work skills that are in demand so that you’ll consistently be employed and won’t need to use up your savings while unemployed.
14. If you’re starting a business, make someone else put up the money while you put up the sweat.
15. Consider the tax implications of everything you do.
16. Planning for your retirement is more important than offering a lavish life to your kids. They’re young, strong and can fend for themselves.
17. Know that you’ll be fine if you err by having too much savings - not if you have too little.
18. Be able to say no to people who ask for money, even if they share your last name.
19. Make sure your plan allows for flexibility if economic times and styles change, but don’t follow fads or trends.
20. Keep in mind that no matter what, you don’t want to be old, weak, ill and poor.

It doesn’t get any simpler than this.

You need to take care of your own retirement. Between the government social-security payments, your 401(k) or other defined benefit plan and your savings, you’ll need approximately 60-70% of your pre-retirement income. However, according to the 2000 census, the median net-worth of households headed by 55-to-64 year olds was $112,048. Subtracting home equity from that and it drops to $32,304.

Ten percent of all seniors currently live below the poverty level. Make sure you’re not in that demographic. Remember, creating wealth takes time and perseverance!

For more of Ben tips on saving for retirement, check out his great book Yes, You Can Still Retire Comfortably!.

Related Readings:

• Yes, You Can Be A Successful, Income Investor: Reaching for Yield in Today’s Market
• Yes, You Can Supercharge Your Portfolio
• The Joy of Not Working: A Book for the Retired, Unemployed and Overworked

Bookmark / Email This