Building wealth can be as simple as how much you invest, how long you invest it, and the rate of return on your investment. The S&P 500 averages about 10% annual returns historically, so wait long enough, and you’ll probably do quite well.
What you can control is how much you invest. Putting more money to work can speed up your journey to financial freedom. Here are three ways to bump up those contributions; your future self will thank you.
1. Look for unnecessary budget expenses
Many people “leak” money from their households and don’t realize it; roughly one in five people don’t keep a budget, making it hard to know what you’re spending your money on.
A survey of 2,500 consumers by West Monroe showed that the average person pays about $273 per month in subscriptions or $3,276 per year. Suppose you don’t need that magazine subscription or the most expensive phone plan. Cutting just $25 per month and investing it instead would grow to $37,242 over 25 years if you received a 10% return on your money.
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Now, what if you cut modestly across your lifestyle? Do you need the most expensive trim package on your car? …….