So, right now I'm reading The Simple Path to Wealth by JL Collins. This is simply the Finance book I have ever read. I'm definitely going to do a book review on this but for right now I at least want to put out the most simple steps to get started with the wealth-building and investing.
Seriously, this stuff should not be that hard but we have complete industries and companies and gurus that profit off of people trying to seek a quick buck.
1) No high-interest debt. Anything over 5% is going to kill your dreams long-term so get rid of it now. And if you have it, pay it off every month.
2) Save and invest at least 50% of your income. For me, I tithe 10% so 40% is manageable for saving and investing.
3) You have three tools to build wealth: Stocks (VTSAX), Bonds or Conservative Investments (VBTLX), and cash.
Once you move into step 3 then you're in the investing stage. As you can see from the picture above, the more stocks you have, the more risky and more profitable and the long-term your portfolio will be.
Since I'm still in my thirties I'm going to take his allocation and dial up the stocks funds to 90% and keep everything else in cash and bonds. I will report back in my findings and hopefully a couple of months should I remember this lol...
K, bye! 😊😊😊
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