KANSAS CITY, Mo. – If you have dreams of one day being rich, you’re not alone. Millions of people spend billions of dollars every year on everything from lottery tickets to get-rich-quick-schemes to self-help books, all in the hopes of making it big and securing their financial future (or the futures of their family).
Thankfully, the Consumer Federation of America, a non-profit that aims to educate consumers and advance their rights, has a list that might help you get those riches you desire. No, it’s not the top ten Suze Orman books.
It’s the “6 Steps to Six-Figure Savings,” and they claim it will pave the way to a secure financial future. This is what the organization says you should do:
1)
THINK LIKE A MILLIONAIRE. Eighty percent of America’s millionaires are self-made. They did it by learning to save money on a regular basis, and make purchases based on what they needed, not just what they wanted. It takes a little extra thought to live this way, but I’m sure any of those millionaires would tell you it was completely worth it.
2)
PAY YOURSELF FIRST. This means making savings a priority. After you pay all of your bills, put some money in savings before you go spending it on yourself. Experts recommend you put away at least 5% of your after-tax earnings.
3)
GET RID OF HIGH-COST DEBT. More and more lately, credit card companies are jacking up interest rates. Always pay off your higher-rate cards first, or you’ll end up spending a surprising—and depressing—amount on interest alone.
4)
TAKE ADVANTAGE OF FREE MONEY AT WORK. If your employer offers some type of contribution to your retirement savings, take them up on it! Many people don’t, because they know it requires their own money, first. But with your employer matching your own contributions, the return can add up very fast.
5)
GIVE YOURSELF A TAX BREAK—LEGALLY. Put your savings into an IRA or another tax-deferred account. In those kinds of accounts, more of your money can grow and compound than if it was in a taxable account. That means Uncle Sam gets less of your hard-earned dough—and your family gets more.
6)
MAKE YOUR HOME A CASTLE. Having a mortgage may seem like a financial burden, but it can also be one of the best savings opportunities you’ll ever have. The more you own your house, the more you have saved. By speeding up mortgage payments, you can dramatically reduce the time it takes to pay off the house. Just $34 more a month on a $100,000, 30 year mortgage at 9% will reduce the payoff time by 5 years and the total interest cost by, get this, more than $38,000!
For more tips from the Consumer Federation of America, check out
their Web site.
