Quote:
Originally Posted by eDave
Here's how I started moving forward with it some time ago:
1) Invested in 401K up to company match
2) Cut expenses to the bare minimum, but still enjoyed my life. Just trimmed cable, phone, electricity, etc. costs)
3) Paid off credit cards
4) Save, save, save up to 1yr living expenses
5) Once there, moved living expenses to IRA. Basically a living expense savings account now as I can draw off it if needed without penalty or interest. Repaying it is just replenishing the account.
6) Increased my 401K investment as it was doing great at the time (still is).
7) Anything left after that to invest? I have my 401K company doing other investments for me.
I'm pretty simple like that to this day. And #2 is still in practice. CC's now work to my advantage too.
Of course a house is a revenue stream. And in that vein, you can get into rentals too. Just hire a management company for all the BS and let the appreciation commence.
Baconeater has solid advice as well.
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Yeah I've done most of those. Forgot to mention I got a Roth IRA 6 months ago. I do own a house (as of January) and plan to gain equity over time. No credit card debt to speak of. I've always used my discover to pay for things like gas, Pay it off on time and use the rewards on things like an Amazon product I want.
I've actually cut a few expenses and have used them towards paying off my Accord, which is projected to be done by March, so that's progress.
I'm a frugal guy. I always try to live below my means and save where I can.