1. Buy a house - real assest can be a great asset (build equity, instead of renting)
2. Make saving a priority - commit to saving a certain amount each month or week and put it in a high yield savings account. Don't take this money out.
3. Invest in the stock market - pick dividend paying companies for the long term.
I'll admit I haven't done step 3 yet because I've been a little scared of losing money. One of my goals this month is to use the money generated from this blog to start an investment account with Sharebuilder.
How to Make a Million Dollars. I don't make your life, I make your life better. The personal finance blog of a young professional saving 1 million dollars for retirement. This site focuses on saving money, making money, investing money, and increasing net worth.
Subscribe To
Posts
Comments
I'm also a firm believer in realestate.
ReplyDeleteWell, I believe the best way to reduce the emotion problem of "afraid of losing money" is building a great resources of high income. This is why I always emphasize starting a business or doing something that bring profit to you.
ReplyDeleteMight I suggest an index fund for getting you feet wet with the stock market. A fund like the Vanguard 500 almost identically matches the S&P 500. This allows you to basically invest in the entire stock market as a whole, mitigating your risk. Historically, over 30 years, the Vanguard 500 has returned 12%. There are other index funds out there that let you invest in entire markets, for instance, the entire European market, or the Emerging Markets Fund (a little risky) or the Russel indices. If you go the individual stock route, having that solid blue chip with the high dividends is always a good idea to anchor your portfolio.
ReplyDeleteI'd love to buy a house. Where do I sign up?
ReplyDelete