Create your mini asset base
Once you begin to create your mini asset base, what kind of return on your assets should you expect? I say at least 10% to overcome the major stumbling blocks of purchasing power: taxes and inflation.
Don’t let fear control your money! There are many ways to produce residual income and each one has a different amount of risk. Look for those vehicles that suit your risk level. Use your time and knowledge wisely so that you can work smarter, not harder. Consider buying no load funds or low-fee investments. Be sure to get money market rates on your checking balances and cash management accounts. Simple changes will make large differences in your cash flow situation.
Keep in mind that delaying will cost you. Take a look at the following IRA comparison chart. Tom began putting in the maximum amount into an IRA at 18 years of age. When he retires, he will have over $150,000 more than his counterpart, Linda, who began at the age of 26, just 8 years later!!
Money doesn’t grow on trees, but you can make your money stretch further if you realize that saving money on expenses is like getting free money. I don’t know about you, but I NEVER turn down free money!!