By Michael Alan Jones
Ever hear of the “Millionaire Next Door”? It could be you! First, it’s important to determine if you are in the business of building wealth.
As a result of today’s economy, most of us face the reality of working long hours day and night. Maybe some of us even work two jobs. And if that’s not stressful enough, we also face the uncertainty that we won’t have access to social security, or the fact that jobs are being outsourced and/or leaving the United States, or that our pensions lack the sufficient funds needed to retire comfortably. We may have realized that we need to develop and seek out other avenues of securing not only our future, but the future and lifestyle of our children and our families. Here are some helpful tips to becoming financially fit and working toward creating what we most desire for our present and future – wealth.
Wealth is not defined by the automobiles we drive, the clothes we wear or the jewels that we possess. Wealth is to be viewed as the means to live a rich and full life without heartache or struggle. To start, you must learn to live within your means. Learn to pay yourself first before you pay anyone else. Make saving a part of your monthly budget along with shelter, food, bills and last, but not least, your personal entertainment. By setting aside a little each month in a separate account, you can watch the interest grow over time; thereby, creating a much needed cash reserve for emergency situations.
Credit card debt is the first sign that you are living beyond your means, especially if it is for luxury or entertainment expenses. If you want to know what happened to your savings, look at the interest payment on your credit card statement each month, multiply that by 12 months, and then by the amount of time that you plan on paying that small amount. This is where your savings are going – to someone else. Reduce your spending, control your debt and free yourself for the future.
Now that you have some money set aside what do you do with it? Look at your financial picture and ask yourself, do I have 10-15% of my income going into my 401k? If the answer is “yes” then you need to utilize your savings to put in instruments that will yield you interest. For starters look toward your banker for advice on savings accounts, the money market, and certificates of deposit. These are great tools for money that you may need at a moments notice. Once those are in place, educate yourself and ask for advice on investing in stocks, bonds, mutual funds, insurance, Traditional and Roth IRAs, and real estate. Information is the most important tool that we have, and the key to obtaining information is to “ask” those that have it at their disposal. Seek the counsel of those in banking institutions, and/or financial planners and advisors. They are experienced in wealth creation and study the information for your own education. There are many books that contain financial and motivational strategies to help create wealth in your life.
While we live life for today and want to keep up with the “Joneses,” we must pay attention to one small thing, “What if tomorrow does come?” If your goal is to retire and to have something to pass onto other generations, then living for today is not the answer. Preparing yourself for tomorrow is the best investment. Wealth is not an instrument but a lifestyle that you can either choose to experience. But it’s a personal choice and it’s available to all of us. What choice will you make?
Michael Alan Jones, Banking Center Manager, 1 North Wacker Banking Center, Fifth Third Bank, 1 North Wacker Dr., Chicago, Illinois 60606 (312) 251-2344 Phone
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