Originally published at: The two rules of building wealth – Personal Finance Club
My two rules of building wealth are short and sweet: 1.) Live below your means and 2.) Invest early and often!
Rule number one is simple. I think pretty much everyone gets the concept of spending less money than you make. But it’s definitely not easy. Sometimes life happens and you need to spend more money. Sometimes your impulses get the better of you and you want to spend more money. There are a million reasons why it can be incredibly difficult to spend less than you make. That’s why living below your means is simple but not easy.
On the flip side, rule number two (investing) is actually incredibly easy. Yesterday I was playing cards with some friends and one of them wanted to know how to invest. We pulled up her Fidelity account on her phone and with about four clicks she was investing her money. It was very easy. But, before you know which four clicks to make and why you’re making them you have to sift through a ton of complexity. From images of wall street traders frantically screaming buy and sell to crypto day traders seemingly getting rich quick by buying these made-up digital coins, how do you sift through what is real and what is nonsense? That’s why investing is easy but not simple.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Jeremy
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