The Lazy Strategy To Wealth

All this personal finance stuff can be too much! 401k’s, TSP’s, Index Funds, Large Caps, Small Caps, 24 hour financial “news” coverage, hot stocks, the sky is falling, on and on… So let’s say you just do not have it in you to care about this stuff. That’s probably a great thing. Here is the simplest strategy ever, as easy as 1, 2, 3! 1. Sign up to have at least 10-15% of your pay automatically deducted and placed in a low cost index fund. Automate this and forget about it. If your employer does not offer a 401k, then sign up through Vanguard for deposit into a low cost index fund. 2. Emergency fund. After you have completed step one, Put at least $5k (or more, experts say 6 months living expenses) in an emergency savings account that you do not touch. 3. Spend the rest and no more! No penny pinching, just spend the rest of your income each month. BUT, no more. No debt allowed, just go nuts with the rest. I am no financial planner and this is not advice. But I bet if someone did 1-3 consistently throughout their working lives, they would be in better shape than 85% of all Americans! If someone made $60k a year and simply did the above for 30 years, with the power of compounding and investment returns they could have $540,000 to $850,000 and no debt! *see a fiduciary financial professional with specific questions and your own financial plan.

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