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Wealth creating strategies
01-24-2017, 05:25 PM
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#1
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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Wealth creating strategies
I would like to know about what strategies can be used to create wealth.
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01-24-2017, 05:41 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by Ramonjp
I would like to know about what strategies can be used to create wealth.
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Live below your means and invest in stock index funds steadily for 30 years.
Oh, did you mean like, right way?
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01-24-2017, 05:42 PM
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#3
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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Legal of coarse.
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01-24-2017, 05:49 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,525
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Take 10 to 20% of your income invest into stock index funds ( preferably into a Roth to the allowed max) regular taxable funds otherwise. Use any available 401K particularly if there is an employer match (free money) keep it up for 30 years - you be done. That's what I did (except for the Roth's not available at my time) worked so I could ER at 52.
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01-24-2017, 05:49 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Sep 2016
Location: Acworth
Posts: 1,214
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Have money, invest it wisely, rinse and repeat.
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01-24-2017, 05:50 PM
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#6
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
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Save as much as you can and invest it in life expense funds. Keep adding to it. Compounding is your friend.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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01-24-2017, 06:09 PM
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#7
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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That's pretty much what I'm doing right now. I'm shifting my income by using the extra money from my paycheck that i get from adjusting my w4. That put me in a lower tax bracket. I'm using that money to pay off key debt and fix my credit.
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01-24-2017, 06:21 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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Quote:
Originally Posted by Ramonjp
That's pretty much what I'm doing right now. I'm shifting my income by using the extra money from my paycheck that i get from adjusting my w4. That put me in a lower tax bracket. I'm using that money to pay off key debt and fix my credit.
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Uhhhh....no, that's not quite how it works. Reduce expenses to pay down debt faster. Adjusting w4 does not change your tax bracket.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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01-24-2017, 06:32 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Open a business.
Open an eBay account to sell.
Save more than feels comfortable.
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01-24-2017, 06:32 PM
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#10
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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Well that's exactly what I did. I went from paying $120+ in federal tax and now I've gotten it down to as low as $0.00.
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01-24-2017, 06:34 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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When I had a lot of debt, I never stopped saving...ever. I maintained decent credit by shifting the debt to very low interest rates and continued to invest in low cost index funds. Many believe it is necessary to pay down debt before saving but I felt empowered knowing I was still saving. I didn't try to time the market (except maybe one time) and I budgeted carefully. LBYM.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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01-24-2017, 06:34 PM
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#12
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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My plan is to hit my freedom goal within the next 10yrs
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01-24-2017, 06:36 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,686
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1. Avoid borrowing
2. Continue growth and education
3. Find a good mate
I don't think we've created as much wealth as we could have, because I was not really ambitious about the money side. Trying to pass some of this wealth to the next generation, but who knows what might happen?
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01-24-2017, 06:36 PM
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#14
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Administrator
Join Date: Apr 2006
Posts: 22,973
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Quote:
Originally Posted by Ramonjp
Well that's exactly what I did. I went from paying $120+ in federal tax and now I've gotten it down to as low as $0.00.
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If I understand you correctly, you increased your exemptions on your W-4 so that you would have less tax withheld from each paycheck. You do know that you'll have to pay all that tax when you file next April, don't you? And you'll probably face an under-withholding penalty.
__________________
Living an analog life in the Digital Age.
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01-24-2017, 06:37 PM
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#15
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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I've learned that the best way is to pay of the debt with the highest interest rate first.
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01-24-2017, 06:38 PM
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#16
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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As a home based business owner ill be able to combat any liabilities through my tax write-offs
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01-24-2017, 06:39 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by Ramonjp
Well that's exactly what I did. I went from paying $120+ in federal tax and now I've gotten it down to as low as $0.00.
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Uncle Sam may bite you at tax time.
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01-24-2017, 06:40 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by Ramonjp
As a home based business owner ill be able to combat any liabilities through my tax write-offs
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Good luck.
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01-24-2017, 06:41 PM
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#19
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Administrator
Join Date: Apr 2006
Posts: 22,973
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Quote:
Originally Posted by Ramonjp
As a home based business owner ill be able to combat any liabilities through my tax write-offs
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Where does the W-4 come from?
__________________
Living an analog life in the Digital Age.
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01-24-2017, 06:41 PM
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#20
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Dryer sheet wannabe
Join Date: Jan 2017
Posts: 13
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I'm investing that into my business. So it becomes a business expense
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