What the Rich Know and the Poor Don’t

rich and poorBy David John Marotta

Financial planning is important, but it is never urgent. Most people fail to establish a financial plan because they fail to start planning. Some resolutions can be postponed, but for every six years that you delay saving and investing, you cut your retirement lifestyle in half. So, act on your resolution today.

To successfully build wealth, you must know the answer to two important financial questions. However, many Americans never bother to get the answer for themselves. Being able to answer these two questions is an important first step toward meeting your financial goals.

Depending on your station in life, this first question should be modified to fit your situati

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4 Responses to What the Rich Know and the Poor Don’t

  1. Minimum Wage says:

    It doesn’t matter how much you “need to save this month…” if you don’t have it.

    Yes, I fully understand that I have NO assets and that I can expect to become unable to work before I die and that I will become destitute in this event.

    So I’m a poor person who already knows these things.

  2. dan says:

    While I don’t know the extent of your situation, if you don’t have enough money, then you need to figure out a way to make money. The fact that you can comment on this site means that you have the skills to make more money. Begin a blog of your own or write for one of the many sites that now pay people to write articles.

    If you know the situation, you need to take the steps to rectify it. Nobody is going to do it for you but yourself.

  3. Jenny says:

    There are many ways to earn extra money. One of the age old keys is saving first and learning to live on what you have. That seems an easy thing to say but may be really tough depending on your individual circumstance. One of the things to do is to really examine how you are spending your money. Challenge yourself to track your spending for a week…a month would even be better if you can discipline yourself to write it down! Then look at essentials and non-essentials. How many pops are you buying at work? If you are spending $1.50 per day x 5 days = $7.50 x 52 weeks = $390 per year. Over 45 years of working, that equals $17,550. That’s just a small example!! How many of us eat out and how often? How about flavored coffees at our local coffee shop? Imagine what that money could come to if we were to invest it instead!? I think you get the idea!

    If you have access to a retirement plan through work, you need to try and max out what you put in. If your employer matches your money; you’re throwing money down the drain if you don’t take advantage of it. Remember, the money that you put into work retirement plans is before taxes are taken out, so your money is really going farther and you are not taxed on that money until you start taking it out at retirement.

    IRAs may also be an option with my favorite being the ROTH IRA. Since you are contributing to it with after tax money, you also do not have to pay any taxes on the growth when you start drawing on it in retirement. What a fabulous bonus!

    Be sure to consult with your tax advisor or insurance and financial services advisor to help determine the best options for your individual situation. Be sure you are taking advantage of all of your tax exemptions and write-offs.

    It can be tough to make extra money when you are working at jobs barely above minimum wage and are being scheduled so many hours that you barely meet yourself coming and going. You may even feel trapped in a job and feel like you have no other options. If more education is needed; there are many programs that you can do in evenings or on-line to further your education. Depending on your circumstances there may be grants and programs available to help with your educational costs.

    Your local employment agencies may also be a good option for finding temporary work or work-to-hire positions. Many employers also may only advertise through these sources…especially through state run programs.

    A lot of us go through rough spots in our lives and find curve balls that punch a hole in our plans. That’s when we re-examine, adjust, and go to plan “B”, (or”C” or “D”.

    One last thing…where do I find sites that pay you to write??

  4. Zook says:

    Minimum Wage- Stop reading this stuff already. You continue to howl at the moon. Face it, you will work until you die and will never get ahead. Just face the facts already. Your way is working so far, not sure why you even read.

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