Reason for this Goal: The single best personal investing financial habit you could develop is to pay yourself first. Take 10% of each pay cheque and invest it into appreciating assets. Just like you would pay all your expenses (car, insurance, utilities, mortgage, etc.), consider the “Pay Yourself 10%” as a mandatory expense that you pay.
If you want to be really wealthy, double the 10% to 20%. You will be happy you start this key financial habit, as this single habit will (should) allow you to become a millionaire before the time you retire. Much sooner if you adopt 20%.
With personal investing, there are other many appreciating asset classes to invest in to develop your net worth. In general, you want to buy things that go up in value (appreciate) versus things that go down in value (depreciate).
Assets generally depreciate due to wear and tear through the passage of time and other key factors such as obsolescence. Most people are interested in purchasing new products and that is one of the main reasons assets depreciate due to the law of supply and demand.
To understand how to invest in the stock market, read about the investing strategies of the # 1 investor of all time: billionaire, Mr. Warren Buffet.
To understand the benefits of real estate investing, check out my page on Real Estate Investing Goals . We own four homes on our street known as Gables On The Park and this was one of the foundational keys to our success.
With the application of this goal, and the benefits of learning about compound interest (discussed in Goal # 41 - Learn Personal Finance 101), you benefit the most by starting to invest in appreciating assets as soon as you start earning income, to have the maximum benefit of time for the compounding to work for you.
Take time to develop your personal investing strategy. Ensure that paying yourself 10-20% first becomes a key component of your strategy.
Suggested Goal(s): Put 10% of each pay into an appreciating asset account.
Your Outrageous Goal: Own > $X in appreciating assets by retirement.
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