Investing is saving time, not just creating wealth

Increasing wealth is not a trivial matter, and it is especially true if you do not have much money to save. But with enough time – and with the compound interest on your side – it's possible for almost everyone to build a nest egg on which they can expect to retire.

According to Taylor Schulte, financial planner and host of the podcast Stay Wealthy, devoting a lot of time initially to designing a retirement and investing plan that you can truly understand is the best hope of all. Schulte also suggests creating an investment policy statement, a written plan that dictates how you or your financial advisor will invest your money.

But it's important that your investment plan is simple and easy to understand.

"If you do not understand it, you will no longer have the confidence you need to stay engaged in the long run," Schulte said. "And staying committed in the long run is essential to financial success."

Schulte says that it's important to spend a lot of time creating a plan for your money, especially when you're retired or retired. Once you have implemented this plan, let him have the time to work and find someone to help you hold yourself accountable for the execution of the plan. Making frequent changes to your investments can result in fees, taxes and long-term performance.

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"Since we can not control things such as interest rates and the direction of the stock market, focus on the things in your life that you control directly and that will improve your financial life almost instantly." said Schulte.

Among the areas of your life where you have control include the identification of opportunities to reduce costs, take concrete steps to reduce your tax bill, better manage the risks badociated with your investments, improve your business, and reduce the cost of your business. improve your badet allocation and keep you better. Track your expenses to help you build your retirement income forecast.

"If everything is online and on the right track, dedicate your new time to things that matter most to you," he says. "For me, I'd rather spend my morning hitting golf balls with my kids than worry about financial markets and tinkering with my wallet."

If you hear someone on the news – or even your neighbor – speculating on interest rate direction or on the next recession, you should ask yourself a simple question: is this something that I control?

Most often, the answer is "no," and if you can not control it, you should not let it influence changes to your investment or your long-term financial plan.

Concentrate on what you can control and ignore the rest, and you'll be much better off.

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