This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Once you are financially liberated (paying off debt, increasing your income, and managing your money better), you can give more attention to asset building, which is another term I utilize to mean saving and investing. This is a brilliant time to increase your net worth and enhance your position of financial liberation – debt-free. This is also a superb time to start giving more to others who have less than you.
One key thing to remember about debt: Debt is not bad if you can afford it. Some people have debt or liabilities but still have a positive net worth due to savings, investments, and liquid cash. To sum it up, be different; have the power to buy your way out of debt with your resources – if you choose to have liabilities. However, If you have experienced being deep to your knees in debt (or still are), avoid getting deep to your knees in debt again.
Step 1: Save At least 15%+
When you have debt, your focus should be on paying off your debt instead of saving large sums of money. But, when you are out of debt, a good idea is to save a minimum of 15% (preferably more) of your entire income. This fifteen percent could be for a future house, car, or simply for retirement.
Don’t Stop Investing To Pay Off Debt
I will mention here that the one caveat is: don’t stop saving and investing while you pay off debt. You can’t get time back. Though people say interest rates (e.g., credit card debt) will work against you, not investing will also work against you due to compound interest. Find a way to balance paying off your debt and investing. I practiced this, and it worked 100% well. In fact, I wish I has focused even more on investing while I was paying off my debts. Seriously, you can’t get time back, which is the best friend of compound interest.
Step 2: Learn About Investing
I’m no expert when it comes to investing, but one thing I do understand is the rule of compound interest. When you invest your money into funds that yield ~10%, you will inevitably increase your net worth in less time.
If you are unfamiliar with investing, teach yourself. Invest some time into learning about the subject by reading books, watching videos, and attending free seminars online or in person. All you need to get started are the basic concepts, and then you can learn as you go from there. I started reading Robert T. Kiyosaki’s books as a kid, but I didn’t know what the hell he was talking about, which is why I had to re-read the books several times. I’m still no master at the Real estate or investing game, but I consistently am acquiring knowledge to make more informed decisions.
Step 3: Real Estate
Many claim that real estate is the best way to build wealth, and I concur. If you’re not investing in real estate, this is your cue to start.
Some people recommend buying physical property; others recommend REITs. My minimalistic habits carry over into my investing, so I don’t work with direct physical property for now. I’m a REIT woman.
What are REITs?
Think of REITs as a way to own property without having to get your hands dirty. It’s essentially the same as investing in a 401k or ROTH IRA, except you’re investing solely in property – along with many other investors – aka crowdfunding (the practice of funding a project or venture by raising small amounts of money from a large number of people).
Learn more about top REITs companies: here
Travel Tip: Go To Your Dream Destinations Baby!
It’s easy to continue to wait and wait and wait to travel to places you have dreamed of your whole life. However, don’t you think it would be a bolder decision to save up and actually GO to the places you’ve always wanted to travel to?
If you plan, you can often GO and EXPERIENCE the places you have always wanted to experience.
1. The first step to getting to the place you desire to visit is to write down the destination.
2. The second step is to determine the date you would like to visit the place.
3. The third step is to determine the total cost for the trip.
4. The fourth step is to create a monthly/weekly budget to save for your trip.
5. The fifth step is to GO!
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This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.