The Latte Factor:
Recognize that what matters i snot how much you earn but how much you are spending.
Decide right now that you can live on a little less and start to save today.
Pay Yourself First:
Open a pretax retirement account, decide to PAY YOURSELF FIRST...
Dead Broke: Don't pay yourself first.
Poor: Think about paying yourself first, but don't do it.
Middle Class: Pay yourself first 5-10%
Upper Middle Class: Pay yourself first 10-15%
Rich: Pay yourself first 15-20%
Rich enough to retire early: Pay yourself first at least 20%
Make it Automatic:
Sign up for your retirement account at work.
Open IRA (Traditional = Tax at withdrawal, Roth = Tax at Deposit)
Make contributions AUTOMATICALLY through payroll deduction or automatic investment plan.
Automate for a Rainy Day:
Build emergency cushion (Ideally, 3+ months' worth of expenses)
Automatic Debt-Free Homeownership:
BECOME A HOMEOWNER
Pay off your mortgage with biweekly payment plan.
Automatic Debt-Free Lifestyle:
Stop carrying credit cards.
Renegotiate your interest rates.
Devote 1/2 the money you Pay Yourself First to paying off debt.
Consolidate your debt or DOLP your credit card accounts.
DOLP = Outstanding Balance / Monthly Minimum