Simply Make a Budget, Create a Plan, Start Investing
“When there are multiple solutions to a problem, choose the simplest one.”
-“The Little Book of Common Sense Investing” by John C. Bogle
Growing Wealth is easy if We have a clear, easy to follow, budget and plan to reach the ultimate goal of financial independence!
The big question is how do We get from living a high consumer lifestyle to a high investing lifestyle with a finite amount of income?
“Intelligence has nothing to do with IQ or SAT scores. It simply means being patient, disciplined, and eager to learn.”
-“The Intelligent Investor” by Benjamin Graham
Creating a budget and a savings plan is extremely important in order to clarify money coming into a household and expenses going out of a household so it can be brought under control.
Once the flow of money becomes clear it can be temporarily “tweaked” a bit in order to create a savings account that can be used to start accumulating income producing assets, like stocks that pay out dividends.
These days A lot of Investment Platforms allow you to buy partial stocks so you don’t need hundreds of dollars to invest!
It’s a great time to be an investor!
To build Wealth We want to acquire Assets that provide an Income, like owning a rental property, and Assets that gain in Value over time, like Stock Shares, ETFs, and Cryptocurrencies.
Personally, I use Robinhood and CashApp for all my investment needs.
When budgeting you’ll notice that there are fixed essential expenses, fixed nonessential expenses, non-fixed essential expenses, and non-fixed nonessential expenses.
You can’t really mess with the essential expenses, like housing and utilities, unless you’re willing to drastically change your life around.
Fixed nonessential expenses and non-fixed nonessential expenses, like subscription services and recreation, are the easiest expenses to temporarily suspend in order to start investing. I say “temporarily” because once an investment portfolio begins generating consistent revenue and profits you can begin to relax a little with strict adherence to the budget. In order to temporarily save even more for investing it is possible to “tweak” the non-fixed essential expenses, like food and clothing.
“We become Wealthy by Decreasing expenses and increasing the acquisition of assets that provide an income and assets that gain in value over time.”
-“Becoming Financially Independent” by Ted Wind
My Wife and I saved thousands by temporarily making Our coffee at home and only going out to eat for special occasions.
We allocated a fixed amount of money to the food budget and created a “base weekly grocery list” that had all of the essentials on it, like water, juice, milk, cheese, eggs, grain, vegetables, and meat, so that we could get our food budget under more control.
Every week has become kind of like a game, with the ultimate goal of saving the most from the food budget money without decreasing our quality of life.
We also started thinking about other ways of saving on non-fixed essential expenses, like using cloth napkins instead of paper towels for a while.
When revenue and profits start coming in from income producing assets and assets that have appreciated in value over time the portion that isn’t reinvested to make even more money can go to paying more and more of these essential and nonessential expenses.
“We buy things we don't need with money we don't have to impress people we don't like.”
-“The Total Money Makeover” by Dave Ramsey
Adopting a more minimalist lifestyle makes it easier to reach the ultimate goal of financial independence and even creating generational wealth!
All you need is a notebook, a pen, a calculator, and internet access to create a budget, make a plan, and start moving towards financial independence!
The time is now!
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