Following basic money rules, such as limiting unnecessary expenses, investing in the S&P 500, and taking advantage of credit card perks, can help improve your financial situation and build wealth over time.
Building wealth takes time and effort, and there are basic money rules that can help improve your financial situation in the long run. The first rule is to limit unnecessary expenses to develop a “guilt-free” spending habit. The second rule is to invest 10% of your net income in the S&P 500 through Dollar Cost Averaging, a strategy that can help create exponential returns over time. The third rule is to splurge 50% of unexpected windfalls and maximize the investment opportunity. The fourth rule is to learn about your credit card perks, which can help you save money. Lastly, it’s important to understand that trading is not investing, and investing should be boring and dead simple by sticking to a fixed amount of investment every month without hand-picking stocks or withdrawing winnings. By following these rules, you can better your financial situation and enjoy the journey towards building wealth.