My Rich Uncle by A. J. Kehl

Author:A. J. Kehl [Kehl, A. J.]
Language: eng
Format: epub
Tags: History, Military, United States, Reference, Personal & Practical Guides, Self-Help, Personal Growth, Success
ISBN: 9781611214680
Google: _k8IEAAAQBAJ
Publisher: Casemate Publishers
Published: 2019-06-19T03:25:57+00:00

The Starbucks Rule aside, you need to be doing something and doing it early. The key is to pay yourself before you pay anything else. How does this work? Basically, set up automatic allotments into some areas that will make you wealthier before you pay your bills (money to others). This concept seems twisted at first, but it is real and an absolute must to get financially healthy. Hell, with many retirement accounts, you can even pay yourself before taxes now that’s putting yourself on the right track. So what will you do to pay yourself first? How will you smile in satisfaction that your nest egg is growing before a frown appears in the form of paying those damned cell phone, car, and utility bills?

When you are young and you get a true understanding of finances, you can leverage your mediocre pay into something substantial. This starts with paying yourself first, but there is a key rule you have to follow. This rule, tested by many and ruining the majority, is one that cannot be argued with. If you follow this rule, you have a chance to make it financially and build true wealth before that 20-year pension plan kicks in. You ready?

Do not freaking buy a new, expensive car.

Time and time again, young airmen with no real financial foundation get that sweet new ride. This mistake often leads you down a road of paying others and not yourself. Hang in there with a beater car for a few years as you build your savings. In the end, if you absolutely want to buy a new car, get one that’s at least two years old and make sure you are investing (notice I didn’t say saving) at least 15 percent of your gross income (your income before taxes). Around two years old is the sweet spot when it comes to a car’s value versus depreciation.

TSP 101: Traditional vs. Roth

With the Roth Thrift Savings Plan (TSP) now available, people are scratching their heads and wondering where the heck to put their money. To make it more complicated, the traditional TSP is based on a percentage of your gross income, whereas the Roth option is a set monetary value. So which one is better? Well, I’m definitely not a financial advisor, but as a 10-year TSP participant and a guy who prides himself on learning what he can about finances, I feel I can at least throw out the difference between the two and my opinion as to which is the way to go. Keep in mind we will have another sweet tidbit on which funds to invest in. Let’s take a look at which route to go: traditional or Roth.

First, let’s look at the traditional TSP. Because you fund your TSP with pretax dollars, you actually lower the amount of income you must pay taxes on. This, in turn, decreases your tax burden while you’re employed, which can be particularly significant if you contribute the maximum amount or are in a high income tax bracket.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.