5 accounts you need to build massive wealth

We all use financial products. If we are going increase our net worth we need to understand money and how it works. How it can work for us. But where do we begin. Most people know that they need to have a checking. But do you have a savings account? How much interest does your savings account pay. The vast majority of Americans cannot answer that question. But the answer change how many years you will have to work before retirement.

Want to retire early? You better have savings. And more importantly, your money better be working for you.

The path to wealth is a simple one.

If your going to build a mansion, you better have a strong foundation. And that’s true of money. You need the basics before you start trading options. But financial accounts are worthless if you don’t know your self worth. You have to be disciplined with your money. I have believe that you are worth investing in. That you are worthy and deserving of money.

If you don’t have a strong self esteem you can spend money in bad ways. You can try and fill a hole that can never be filled. Debt is bondage. The more debt you have the less options you have. You first goal should be to get of debt. Then create an emergency fund and then build your fortune.

Here are the five financial accounts which will set you up for success

  • Checking – low interest rate, but easy to move money in and out. Can get a bank debit card. Your money is insured by the government.
  • Savings – Much higher interest rate than a checking account. But you cannot withdraw money as easily. Your money is also insured by the government.
  • Credit Card – use credit to make purchases. Your money is protected while you spend the credit of another company. You can earn cash back for any purchase you make. Passive income.
  • Retirement – 401k and ROTH IRA – Pay tax today and then any capital gains received in the future will not be taxed and you can remove the money at any time. There are limits to how much you can contribute each year.
  • Personal Investment – purchase dividend paying stocks and receive passive income for life. You will also receive capital gains.

Bonus: Health Savings Account – this is a triple tax advantage account that allows investors to save money for health related expenses. You can invest the your funds in the market and grow that money exponentially.

These are the essential financial accounts that you need to maximize your financial future. Use the magic of compounding interest and dividend reinvestment to maximize your net worth and monthly earnings.

Once you have these accounts you must create a plan and consistently contribute.

These accounts are not the only thing you need to build wealth. You also nee the income. Show me the money. It takes time to build up your earnings. And that applies to employees and entrepreneurs. There are lots of different ways to increase your income. You can start a new business or negotiate a salary increase.

But it starts with you taking action. Open these accounts, max them out. Go talk to your boss or potential customers. Small steps lead to big change.

Here are some tips to negotiate your salary increase:

  • Schedule an initial meeting with your employer about how to can add more value to the business and outlines actionable goals you can take to get there. And mention that if you hit those goals later you can chat a compensation adjustment.
  • Follow up with your boss on your progress.
  • Make a list of the value you have added to the business.
  • Review with you boss the action items you completed. Discuss the value you have added to the org and then ask for compensation increase to match the value you have added.

Repeat this process over time.

Once you start putting money into your accounts it will start working for you. Let it work for you till you reach your financial independence number and then you can do whatever you want in life.

You only get one precious life, do not waste it.

Published by Collin Harness

Obsessed with creating value and helping people achieve financial independence.

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