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But how do you go from middle-class stability to building wealth that lasts for generations?
Heres how you might do it, step by step:
1.
These steps may seem basic, but theyre essential.
Think of it like building a house: you need a strong foundation before you add floors and walls.
Heres an example: Lets say you invest $500 per month starting at age 30.
With an average annual return of 8%, by age 60, youd have more than $745,000.
Explore More:Dave Ramseys 3 Key Moves to Overhaul Your Financial Future
3.
If your employer offers a 401(k) match, contribute enough to get the full match.
Its basically free money.
confirm to increase your contributions over time, such as bumping up your savings rate with every raise.
Instead, youll pay taxes when you withdraw in retirement.
If you prefer tax-free growth and withdrawals in retirement, look intoRoth IRAsinstead.
Diversify Your Investments
Putting all your money into a single stock or asset class is risky.
In other words, homeowners typically have nearly 40 times more wealth than renters.
Teach Financial Literacy to Your Family
Building wealth is one thing.
Keeping it in the family for generations is another.
Wealth is often lost within two to three generations because heirs dont know how to manage it.
A little planning now can preserve your family a fortune later.
Create Multiple Income Streams
Relying on one source of income limits your ability to build and sustain wealth.
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