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How to Set Yourself Up to be Rich

how to get richThis article will give you some steps you can take in order to make yourself a very wealthy person. Depending on your age, commitment, and focus, you can make yourself very wealthy. I’m going to show you how.

With some dedication and planning, you can become a very affluent and wealthy person. This article is not intended for people who are close to retirement although some of the ideas can help you as well. However, the article is aimed at people who are college age on up to 40 years old. If you follow the advice I’m about to share with you, you will more than likely attain a large sum of money.

The first step before you do anything is to pay off any debt you may have whether it is student loans, a car payment, or a house payment, or a credit card. This is important because you will eventually have to pay off this type of stuff. Why not pay this off as soon as possible and then start putting your money to work for your as I am going show you rather than try and put money to work and pay off debt.

The next step is to open one account and start saving money in it for a rainy day. This is important. Having an savings account with ideally 6 months of what your salary from work is will come in handy should you ever find yourself out of work for an extended period of time. Strive to keep in this account 6 months worth of what you make. So if you make $24,000 a year, you want to build this account up to about $12,000. If you start making more money then adjust this account accordingly.

After you have done these two steps you want to open up a brokerage account or an account that lets you invest in stocks. I say stocks because this type of investment will make you a lot of money if you play your cards right. Now pick stocks that I called dividend plays. These are stocks that pay out a hefty dividend for each share you own and have increased it’s dividend payout for many years. I personally own the stocks Altria (MO) and ATT&T (T) right now in my stock portfolio. Altria for example pays out $1.36 for each share you own and ATT&T pays out $1.68 currently. If you own enough of these stocks you can receive a steady stream of cash every 3 months when companies like these pay out their dividends to their shareholders. And if you own so many, you may be able to stop working and collect your checks from these companies in the form of passive income.

You also want to set up a 401K if your job offers one and/or a IRA account and deposit as much money into these accounts as you can. I would say the younger you are, the more you want to deposit your money into stocks and as you get older start gradually placing an equal amount of money into your 401K plan and IRA account should you decide to open these accounts up. Either way, you should be trying to put as much money into these accounts.

Lastly, I spoke a little about passive income already. But if you want to truly be rich, your goal should be to have as little of your income made as earned income. Earned income is when you are working for someone and you are working for a check. Your ultimate goal should be to create and have as much passive income as you can. With passive income you sit back and really don’t do anything and watch your money come in monthly.  The best way to earn passive income is through tools like stocks that pay out dividends, royalties from things like books, songs, or blogs, and also real estate stop foreclosure Houston and owning properties that people pay you to rent out or live in.

In conclusion, if you can apply all of these ideas to your financial situation  you will indeed become wealthy and start bringing in a lot of money. It isn’t going to be easy but it also isn’t impossible. It just takes some work, focus, and a plan.