Don’t think of your money as one bank account. Divide it into two parts: your investment portfolio and your income. Your spending money comes from your income. If you want to go out to dinner, pay for it out of your paycheck.
If you make money on an investment, whether a profit or a dividend, that’s not for today’s spending. It’s for the day you stop working, so keep it on the investment side. Taking $100 out of your portfolio for dinner may seem small, but left invested, that money can grow into tens of thousands of dollars that could help you retire earlier.
Key points
- Separate your investment portfolio from your income.
- Pay for everyday spending from income.
- Keep investment profits and dividends invested for retirement.
- Small withdrawals today can cost tens of thousands in future growth.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
