I understand that. I do. However, I don't really have any tips that will grow your stash overnight or help get you mega gains in a short time frame. Also, I'd caution you against jumping on board with anyone promising basically what amounts to any "get rich quick" scheme. My own stash isn't that big. I'm currently working to break the 50k mark. To some, that might seem like a lot. To others, it doesn't amount to much. After all, we've all seen graphs and charts of peoples' stashes that are 500k and above. Now, those are impressive and elicit plenty of jealousy. It's financial porn.
Sure, there are some ways to grow your stash quickly, such as investing in some single stocks you think are "hot". You might even engage in that type of trading. You might even be successful at it. I don't do that. I don't want to gamble with my money, because that's what it is: gambling. And, if my stash seems paltry to you, all I can say is: sorry. It's what I have. I hope to watch it grow until, one day, I can proudly display a chart of my stash when it reaches $500k+. That's one of the reasons for this blog.
This isn't a race. It's a marathon. So, pace yourself and just keep chugging along.
As this blog's name suggests, I'm a lazy guy. I'm in my forties and don't care to hustle and step on people to advance up the corporate ladder. I had that kind of gusto when I was in my twenties and thirties (not the part about stepping on others, though). Now that I'm older, I just want to sit steady in the boat, live below my means, and bank the rest of my income.
Like an idiot, I wasn't saving for retirement when I was younger. I didn't start until a couple of years ago when I opened a Roth IRA with Vanguard*. I contributed to it sporadically; definitely not maxing it out each year. Then, I heard about Mr. Money Mustache's blog and learned that, if you're dedicated, it was possible to retire in about 10 years. I read his posts and became hooked. Since then, I've read (and am still reading) financial advice and strategies voraciously. I started to get serious about my own savings and investing, but where to start?
Well, the first place to start was to create a budget and find out exactly what my financial landscape looked like. Once I got an idea of where I stood, I could better develop a game plan to start moving in the right direction.
As a matter of fact, I'm always fiddling with my budget. In the past, when I heard the word "budget", I cringed. I haven't always been interested in finances like I currently am. Now, it borders on being an obsession, but I'm okay with that and I know my future self will thank me for it.
So, I opened an account with Mint.com and also started a spreadsheet to help track my expenses. As time passed, I've tweaked and re-tweaked my spreadsheet(s). Yes, I have multiple spreadsheets, and later, you may find them addicting too, as you play with the numbers to create projections and set mini-goals to strive for.
I created an emergency fund and opened a (taxable) brokerage account with Vanguard, too**. I added these investment accounts to my spreadsheet, including a 401k offered by my employer. As time went by, I slowly increased my 401k contributions until I was contributing 18% (almost the max of $18,000/yr). In my Roth and taxable accounts, I invested my money in index funds. Primarily, the Total Stock Market Index (VTSMX) and Total International Stock Index (VGTSX).
Currently, I try to front-load my Roth IRA every year. This allows me to focus on the other investment accounts and my emergency fund throughout the remainder of the year. Doing this isn't complicated. Basically, it all comes down to identifying where you can cut back your expenses; this will allow you to increase your Savings Rate, which is key to amassing wealth. It allows you to funnel this extra money into an investment vehicle that gives a good return on the investments. It's not rocket science, although there are people out there who would have you believe it's pretty close. Be wary of them; they're probably just after a slice of your pie!
Hopefully, that sums up the nuts and bolts of investing and accumulating wealth. I know that sounds simple. Maybe too simple, but there's not much to it. Really. Don't believe me? I urge you to read some of the blogs listed in the sidebar. These were written by people who've already walked the path and achieved FI. They'll corroborate what I've said. In addition to having a fairly high Savings Rate, this takes discipline. It's basically up to you to stay on the path and avoid the temptations of spending money frivolously.
If you can put this advice into practice, I promise; you'll start to see your own wealth increase.
* First and foremost, this blog is not monetized, nor is it my intention to ever make it so.
** I plan to elaborate on this facet of my experience later. I've simplified it here for brevity, but I'd like to document some of my mistakes and reasons for doing certain things. All of that is for another post.
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