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Its also about making smart choices with your money to set yourself up for a better future.
However, youll also need to stay committed.
One has to make saving money a habit, he said.
And habits good or bad develop over time.
You will practice dollar cost averaging and build significant wealth over the long run.
He said that people commonly make the mistake of allowing their spending to increase as their salary does.
What happens is they are unable to improve their financial condition because they spend everything they make.
That is, continue to live the same lifestyle you led before receiving a raise and invest the difference.
An example will help illustrate how investing a raise can help buildtrue long-term wealth.
Suppose one receives a $5,000 annual raise early in ones career.
You will have invested a total of $150,000 and have earned $672,000 from those investments.
When we get into legal trouble, we hire a lawyer.
Yet, somehow people believe that they should be able to navigate theever increasingly perilous financial waterswithout professional help.
In other words, you should hire a financial advisor.
Johnson said if people dont seek help, they wont ever accumulate significant savings.
Advisors are also needed during retirement to help guide individuals spending their nest egg.
Many retirees who have been conditioned to save during their working lifetimes are reluctant to spend money in retirement.
A financial advisor can help guide that process.
But, in investing, earningaverage long-term stock market returnsis a winning formula for building wealth.
Develop adebt repayment planand consider consolidating high-interest debts to reduce overall costs, she said.
Seek opportunities for career advancement, negotiate salary increases and consideradditional income streams, Winget advised.
Investing in your skills and exploring new career paths can boost your earning potential.
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