In honor of graduation season, I offer these Words of Wealth as a gift to all college grads (and their parents)
1. If you can’t afford something, don’t buy it. Delayed gratification is the doorway to wealth (and a sign of maturity).
2. Make savings a habit. Every month, have a small amount–say $5 to $10–automatically transferred from your checking account to a savings account.
3. Exploit the miracle of compounding: your money earns interest, then your interest earns interest, and then that interest earns interest. Before you know it, you’ve accumulated wealth.
4. Never, I mean NEVER, get into credit card debt. Mounting credit card bills destroys your peace of mind and your quality of life.
5. Learn about investing. To make sure you don’t outlive your money, put at least some of your cash in long term assets (like stocks & bonds) that will grow faster than inflation and taxes will take it away.
6. Never invest in anything you don’t understand. Otherwise, you won’t know what you’re buying. You won’t know when to sell. And you can’t accurately evaluate the advice you’re given.
7. Don’t put off investing until you’re older. If you start now, regularly investing small amounts (in mutual funds), your money will grow into millions. (See #3)
8. Own and respect your value. Never settle for less than you deserve or desire. Always ask for more than feels comfortable.
If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com