First, contribute as much as you possibly can to your 401(k) and increase your contributions whenever your salary goes up. Also, try to “max out” on your IRA each and every year.
You’ll also boost your financial freedom by reducing your debts. That’s easier said than done, but the smaller your debt load is, the more you’ll probably have available to invest.
Finally, set up an emergency fund in a liquid account. This will help free you from dipping into long-term investments to pay for unexpected costs, such as a major car repair.
By following these steps, you can help yourself stay on track toward the day when you can declare your own financial independence.
Navigating Through The Investment World
July 24 is Amelia Earhart Day. As an investor, you can learn a lot from Amelia Earhart’s career.
First, plan ahead. On her many successful flights, Amelia Earhart followed detailed flight plans. And if you have long term financial objectives, you need a plan based on your risk tolerance, time horizon and other important investment factors.
On the day she disappeared, Amelia Earhart tried to land her plane through a thick cloud cover. As an investor, try to avoid having your vision “clouded over” by short-term events, such as price drops.
Some aviation scholars think Amelia Earhart’s plane simply ran out of gas. As an investor, your portfolio needs to have sufficient “fuel” to help you go the distance. Specifically, you need a portfolio with the right mix of investments to help you toward your own unique financial goals.
By learning the lessons left by Amelia Earhart, you can help prepare yourself for a rewarding investment journey.
Contact Wendell at Edward Jones www.edwardjones.com. |
