Let's Get Into the Millionaire Mindset

So you get a check every week, or every other week--some get a check once a month, but, what do you do with your check? 

People say that it's best to invest your money and some things are better than nothing. But people never clarify where you should put your money. They leave that option up to you. We usually think that putting money in our savings accounts is what we're supposed to do. Well, we are, but a savings account shouldn't be our only option. 

To save us some time, I've put together a list of incredible options for investments but first...let's understand why investing is beneficial and why you should take control of that now. 

Investing is an effective way to put your money to work so that it can potentially build wealth. This is great because while you're growing, so is your money. And let's be honest, with the way inflation is constantly increasing, it's best to always have options as you will never know how the future will be when you plan to retire. 

This is why investing is important and this is why savings accounts shouldn't be where you put all your money. Yes, savings accounts are great places to hold money for future rainy days or emergency savings, but they don't actually grow your money. 

In fact, savings accounts should only have 3-6 months of expenses and cash for any major upcoming purchases. You don't want your entire check to sit in your savings account. It'll be easier to touch and spend and unless you actually use it, it usually sits there without any interest growing on it. 

Here's a list of the different accounts you should have to plan for your future:

1. 401(k) or 403(b)

Many jobs upon hire will ask if you would like to enroll in a retirement plan. The answer should always be yes. A 401(k) or 403(b) are important because they prioritize contribution up to employer match, this means whatever you put in, your company will match and put the same amount in. Not all jobs and companies do this, so it's important to ask about the retirement plan before making final decisions.

2. Roth IRA

IRA stands for Individual Retirement Account and it's very similar to a checking or savings account. However, the difference is that the money you put into your IRA is invested by buying stocks, bonds, mutual funds, index funds, ETFs, etc! We'll talk more about the different types of funds later. The good thing about an IRA account is that the growth of the investments inside your Roth IRA is never taxed. 

There are rules that you have to follow to have a Roth IRA account. The rules are a little bit complicated but I broke them down for you:

    1. You can't contribute more than $6,500 per year.

    2. You can't withdraw the money until you're 59.

    3. You can't contribute unless you make less than $138K as a single or $218K as a couple. 

Instead of going to a bank to invest, Roth IRAs are usually invested by going to a brokerage. I use Fidelity, but there are many more brokerages such as Charles Schwab and Vanguard. 

If you make more than the amount above, there are always other options to backdoor it, however, you'll have to check out my Backdoor blog to get the full gist of that. 

3. Health Savings Account

A Health Savings Account means exactly what it sounds like. The money put into your HSA can help lower your out-of-pocket medical expenses by using your untaxed dollars to pay for things. You can use these funds at any time, however, you are only eligible to have an HSA account if you have a High Deductible Health Plan (HDHP).

The key to making money has never been to work too hard. Our money has to grow just like everything else. And if you're reading this blog, that means that this is your sign to get ahead and start investing today. 

The sooner the better and I really want this for you. You really have to put yourself on a certain pedestal. A little goes a long way. Whether it's $10 or $50 a month, it's still something that can be invested and grow and you'll thank yourself in the long run. So start now and we'll continue this journey together!

Let's get into the millionaire mindset!