First of all I want to start this off by saying you won’t get rich spending your money how most people tell you for example buying a car and nice clothes etc. what I’m referring to in fact is buying assets.
most people focus too much on buying liabilities (things that just take money from you like a car),they’ll happily work for hours, just to keep up with everyone else, instead I suggest you cut back on liabilities until you buy enough assets to cover the cost of the assets.
How can Everyday People Do This
you need to focus your spending on things suchas:
stocks and shares/ETFS
I would advise you focus of assets types which bring you an income hence why I haven’t included commodities into the list as income is what can buy you the things you want, a high net worth is good and something everyone should aim for ,but to me it means nothing without the income to match, I’m not saying commodities don’t have a place in your portfolio but to me there something people should put there attention to once they’ve got to where they need to be financially and want to protect that.
How much should you spend on assets
Personally I believe you should be aiming for 50% of your income, I understand this isn’t easy but a starting point could be 10-20% and moving forward then save any bonuses or raises at work or any extra income until you reach that 50%, if you can achieve more than 50% you’ll be where you need to be a lot quicker.
one of the regrets I have with investing is not starting sooner time really is money the longer you can have your money invested the more your likely to make. A common talked about thing in the investing community is the snowball affect where compound interest multiplies your returns exponentially over time.
please make sure you do research before investing but the point I’m trying to get across is don’t procrastinate when doing this you need to take action as soon as you can.
How can this benefit you
You might be asking yourself why should I do this? to me the answer is simple doing this for 10-20 years can give you more freedom to do what you want when you want your money will now be working for you 24/7, you might love your job and never what to retire ,but I believe you should still do this as circumstances change. Creating wealth like this really can change your life and change the outcome of any potential future generations.