February 21, 2012
Healthy, Wealthy and Wise
Is paying off debt your ultimate financial goal? Maybe it shouldn’t be.
The good news: there’s a tried-and-true method to becoming financially flush. The bad news: there are no shortcuts.
Turns out, paying off debt isn’t necessarily the guiding principle – focusing on building wealth is.
“Creating wealth is [about] working hard to control spending so you can save,” says Susan Kaplan, president of Kaplan Financial Services and radio host of a finance talk show on Boston Talks.
Kaplan suggests women adopt a routine that includes monthly expenses to defray
debt but also allows you to save. “My fear about paying down debt first is that people never get ahead.”
Experts say one of the best ways to build wealth is by investing – wisely. Fortune suggests keeping investments simple, not chasing trends, going “heavy” on stocks and making saving automatic.
Other experts say creating wealth requires a shift in mindset – like trying to save more than what simply “gets you by” and earning passive income. “When you earn more money [vs. just saving more], you are creating more wealth for yourself,” says Dollarversity.
Plus, “One of the biggest mistakes is [people] feeling that they should be able to have something,” explains Kaplan. “They should be able to eat out twice a week. They should be able to have a new car.”
But Kaplan says, “You have to live on what you have.”
Bonus PINK Link: Check out these tips on increasing wealth to help build your beautiful life.
By Rachel Pomerance
"I want to be all that I am capable of becoming.” Katherine Mansfield
*Supporting images from FreeDigitalPhotos.net, Grant Cochrane, David Castillo Dominici, and sscreations