Having income properties and investments is, of course, important. However, for you to be truly content, cash savings is a must. It is highly suggested that you save a minimum of 20% of your income. The easiest way to do this is to have it directly deposited from your check into an interest-bearing savings account. This ensures that you won’t forget to set the cash aside yourself, and it prevents you from being tempted to spend the money while you have it. Having that extra cash in your back pocket will put you at ease in case any emergency situations arise.
It is essential to know how and when to use your credit wisely. This includes credit cards, mortgages, and loans. Do not overextend yourself when using credit by making impulsive purchase decisions or by taking out loans that you cannot afford. Paying any types of loan debts on time is the key to a good credit score, which will help build a positive impression for a future lender.
Take your investments slowly by first concentrating on small, achievable goals. If it is your desire to purchase that dream home or car, know your allowance and what you can realistically save. These purchases usually involve a large sum of cash, so they may take you longer to afford them, but patience goes a long way!
Don’t get caught up in the risky get-rich-quick schemes. As an investor, have a long-term strategy in multiple markets. Consider your interests, and invest in rental properties and stocks. These may not pay off huge dividends in the beginning, but think about your retirement: in 30 to 40 years, your properties will likely be paid off, and the rent you generate from these homes is cash in your pocket. If you have invested well, your stocks will gradually grow and grow.