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In America, everyonewants to be rich.
Americans build wealth by spending less than they earn and investing the rest.
Its a virtuous cycle.
Investing Episodically vs. Systematically Contributing
It all comes down to consistency.
Playing Safe With Investments vs.
Prudent Money Risks
Investing can be tricky, potentially involving loss.
Individuals need to be taught to invest and not simply to save to build wealth.
The surest way to buildtrue long-term wealthis to invest in the stock market, urged Johnson.
Moment-to-Moment Money Decisions vs. Making retirement and savings contributions automatic is a wise approach.
People should try and automate as many financial decisions as they can.
One must make saving money a habit.
And habits good or bad develop over time, Johnson said.
You will practice dollar-cost averaging and build significant wealth over the long run, Johnson said.
The biggest advantage of automatic plans are [the] behavioral underpinnings of the plans.
That is, once enrolled in an automatic savings plan, people tend to stay enrolled.
Specifically, one should not simply budget and track expenses, but one should budget for savings.
However, Campanale noted that …many Americans lack the financial discipline or awareness to do this.
One should not feel guilty about spending money in a manner that some might consider frivolous, Johnson said.
The key is to budget to get to maximize ones own unique preferences and not those of others.
One certainly shouldnt cut out those things that truly bring us happiness.
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