Welcome to the latest series on the wildly popular JosephSangl.com – “Ways To Become Wealthy.” In this series, I will share the ways that I have seen people build wealth.
Part 4 Reduce spending and invest the difference
If you have read this blog for any time at all or have participated in one of our classes or group studies, then you know that compound interest is a powerful tool that anyone can use to build wealth.
Let’s say that you are currently unable to save money with your current budget. We know that saving and investing are absolutely critical and essential for building wealth, so a thorough review of the budget is conducted to identify potential ways to reduce spending.
Suppose the following items are identified:
- Cable TV – $100/month (could lower service and save $40/month)
- Home Telephone – $35/month (could eliminate and save $35/month)
- Cell Phone Service – $100/month (could reduce service and save $10/month)
Total savings: $85/month
Using our free “monthly investment calculator” tool, we see that $85/month for 30 years at 12-percent annual rate of return will be $297,072!
Question: Is it worth it to reduce cable, eliminate home phone, and reduce cell phone service in exchange for nearly $300,000? AB-SO-LUTE-LY!
ACTION QUESTION: What are some potential reductions you could make in your own budget?
Review your budget and identify potential reductions. Make the decision to re-allocate the savings to your investments!