Updated: May 19
Do you know your wealth potential? Like, Really?
Forget about your current bank account balance or your salary for a moment and look at yourself with a fresh perspective. What kind of lifestyle do you want? How much will that even cost? One thing is for sure, investing is a must. And no, it’s not about knowing what stocks to pick.
When it comes to investing, it isn’t nearly as tricky as people, especially young women, tend to think. What it’s really about is creating the foundation for your wealth and funding your dream life. It starts with knowing what you want, there’s no one-size fits all. Wealth is very personal! Maybe you want to retire by 35 and live lavishly in a tropical paradise for the rest of eternity, or you want to spend as little as possible, save every dollar and plan on working way past 70 - or anything in between.
Knowing your desired lifestyle is completely up to you
So how do you afford that dream life? This is where many smart women get stuck, and the dream life will be just that, a dream, instead of their daily reality, unless they start investing asap. Passive income needs to be part of your life, if you already started, awesome! If not, check out my passive income guide.
Like Dorothy, a project manager who has years of corporate experience, is tired of the rat race, wants to buy a house, get out of debt and have more work-life balance. Sounds familiar, right? I love seeing women getting clear on what they want from life. But you know what else Dorothy needs to do?
Make more money without working more.
In this article, I share a smart strategy that’ll help you figure out exactly how to fund your dream life. Even better? I’ll show you how to stop coming up with excuses and build your wealth like a pro... without the expertise needed.
Bonus: Want to know how to make as much money as you want and live life on your terms? Subscribe to my email list and get my tips and secrets right in your inbox
Step 1 - Define your dream lifestyle goal
Knowing the destination will help you set your course, or-else you likely won’t get anywhere at all! You’ll continue living pay-check to pay-check, and girl, those days need to be your past not you! Know what you want and do your homework on the cost of that lifestyle. Now, don’t get discouraged if you see it way above what you can currently afford, you have the biggest edge most investors dream of, you have the gift of time! And time really is money when it is properly invested.
Step 2 - Get all the free cash you can
Yes, there most likely is free cash on the table for you. If you’re employed, your priority needs to be contributing to your 401k whatever amount you need to maximize your employer contribution match. Most companies offer a 5% match, that means you should be contributing 5% of your monthly income to your 401k every month. Get this contribution automated so you never have to think about it and instead get to enjoy your watching your retirement fund grow.
Step 3 - Get rid of debt
It’s no surprise that debt sucks your dry of all your hard-earned income. Securing financial freedom and making the most of investing means redirecting any money spent on paying interest to earning interest. Make your money work for you, not your lenders. Want another pro tip? Always pay more than the minimum! Minimum payments barely chip away at the principal balance, essentially, you are paying to keep the debt going.
Step 4 - Investment accounts
If you have cash left over, it’s time to start contributing to your 401k and non-retirement accounts. Prioritize tax-advantaged accounts to make the most of your money. If you don’t have cash left over, don’t worry, keep chipping away at the debt and soon enough you’ll be able to redirect those funds towards your dream life.
Step 5 - Hire a pro
Let’s be real, investing properly isn’t particularly easy if you try to DIY. While you can certainly just put your money into an index fund and ride the overall market, there are more advanced and strategic ways to grow your money, otherwise the advisors and portfolio managers would not be charging big bucks. The good news is that you don’t need to pay their high fees to benefit from their level of expertise, online advisors are a cost-effective way to get professional management of your investments while often paying a fraction of the usual cost and without needing their typical million dollar minimums.
Following these 5 super simple steps will get you to that dream life lifestyle before you know it, be consistent and follow the path to the life you desire and deserve.