I don't know why it is that I get this question. The answer seems so obvious to me, but for so many having a savings account and a retirement account and a credit card seems to be enough.
So, if you do not have a safety net, go back and read my last post. If you aren't investing for retirement, then you'll need to keep reading future posts.
Once you have those basic accounts set up with a good rationale and plan, then you can invest. You need to invest. Why? Because it's the only way to get ahead of the game, especially in the long term.
There is no way to get ahead if you spend every paycheck--or worse go further into debt with every paycheck. You need to have an investment plan.
There are many ways to invest. You can invest in real estate. You can invest in mutual funds. You can invest in stocks. One key that I look for is to stay with what I know and don't chase returns. Believe me, I've learned some of this the hard way. Even though I understand investments, I found myself in my younger days chasing the latest and greatest mutual funds or other investments. If you don't understand investments, then you need to sock some money away in a mutual fund that is indexed to the stock market and then sit on it. The past ten years seems to put doubts in people's minds about this strategy, and it may not work in the future. However, if it doesn't, it's also tough to say what will. In other words, predicting the future is impossible. I can't promise you that your mutual fund will be worth more in the future, especially at any given point in the future. I can say with reasonable confidence that it's your best chance.
I also like real estate investing, although I do not do it myself right now. There are many advantages to real estate, especially if you do it right.
My point here is simply to convince you that you need to invest in something that is not a gimmick. It's the one way that you have as a wage earner of beating the paycheck to paycheck trap and having something for the future.
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