Wealth is what you accumulate, not what you make.
How wealthy are you? Think of it this way: If you were to stop working tomorrow, how long could you support your current lifestyle? That is how wealthy you are.
Regardless of how much you earn, your wealth can grow if you start treating money as something that can work for you — not against you.
Many people shy away from investing because of fear and mistrust of the financial markets, but more often it’s the fear of not knowing how to start investing. That’s how Valeria feels. At age 47, she knows she should be investing, but she doesn’t understand how and she doesn’t know if she has the funds to begin investing.
Valeria has a leg up on her investing plan because she saves regularly, although it is a very small amount. Right now, her monthly financial plan includes:
- Basic living expenditures for herself and her sister who lives with her.
- Savings to cover emergency car repairs, since her car is getting older and she knows that the risk of something going wrong is growing.
- Saving in a basic savings account.
Valeria doesn’t have dependent children, parents or a spouse needing funds from her income, which is good because she can only cover so much right now.