Debt
Management Plan: Step Seven
7.
Start
Process of Making Wealth
Building
Wealth
After
you have accomplished the task of removing debt, the
next step is to start building wealth. The
keep to accumulating wealth is
simple. Save.
And earn interest. Now that you have paid
off the debt, you
should use the money that you used in the past to pay off debt to put
towards
savings.
We also recommend that you have six months of your salary
saved in
cash and that you have life insurance before you star investing money
in stocks
and real estate. Common questions about
savings:
Should I pay off my mortgage before or invest in stocks?
If
you believe that you can earn a hire return investing in
stocks than the interest you pay on your mortgage we recommend that you
invest
in stocks.
If not then we recommend that
you pay them money towards your mortgage
Should I take full advantage of the matching on my 401K
offered by my employer?
Yes,
Yes, and Yes. If your employer
offers matching on your
401K we recommend that you do
everything possible to take advantage of that
matching.
Copyright © 2005 LoseDebt.org. All rights reserved.
Revised:02/26/09.
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