Question for the Money Doctors
Question submitted on Jan 3, 2013.
QuestionWhat''s the best way to build wealth if I have a small income?
Assuming a winning lottery ticket or marriage to a wealthy spouse or bank robbery are not options, time and common sense are the answers.
To build any kind of real wealth you''ll need time on your side. If you only have a decade or so this probably won''t be possible. However, over time you can easily do this.
First, cut spending to a minimum. Don''t eat pasta EVERY day but dont buy the name brand pasta. Shop for non-name brands.
Shop around for everything. Bank fees, car and homeowner and life insurance, etc.
Learn tax laws (ie contibutions to retirement accounts before or after tax reduce taxation now and let the dollars grow tax free or tax deferred (i.e. Roth vs IRA).
Invest on a systematic basis. yes, you''ll buy when the market is high but also when it''s low.
GET PROFESSIONAL HELP. Seek out a good tax accountant and a good financial planner. Their services will be invaluable.
Be prepared with wills, powers of attorney, etc.
Have life insurance for you loved ones and on them for you as well.
This is a generalquestion but following the suggestions listed above will help greatly in improving your odds of acheiving real wealth.
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