Invest legacy

Reaching the $1,000 point in monthly dividend income is an exciting milestone. Will it allow you to retire as funds are deposited into your account for doing nothing? Most likely not, but with the accelerating interest and compounding effect, you might get there sooner than you’d think. $1,000 is enough where it can have a noticeable impact on your finances and you’ll be happy seeing your investments start producing this much income. Once your account becomes this large, you’ll likely become more dedicated to growing that account to where you can live your dream lifestyle and retire. How much money do you need invested to safely generate this much income? Let’s look at some different scenarios and you can see how much money you need to earn $1,000 per month in dividends and stay to the end to learn how to decide the best option for you.

If you have at least $400 saved to cover an unexpected emergency, you’re already financially better off than one third of Americans, according to the Federal Reserve. It’s well known that most people do a poor job of managing their finances and there are seemingly few people that are responsible with their money. Having a good relationship with money doesn’t necessarily mean being ultra-wealthy or earning a high income, either. This just means that you make responsible choices, aren’t making careless decisions on a regular basis and are comfortable with your income and expenses. What are some of the most common reasons that people are broke and how can you avoid them? Take a look so you can be sure you’re not making these mistakes that could keep you broke forever.

Are you doing well financially? No matter how much progress you make, it still never feels like you’re financially well off. You could always be doing better, right? There is always someone your age that seems to be exponentially better off when it comes to money. While it can be hard to take an honest look at your own financial situation, taking a look at some basic financial metrics to measure your well being can help you gain a clearer perspective and get a better grasp on your progress.

Charlie Munger, famous billionaire investor and Vice Chairman of Berkshire Hathaway believes that the first $100,000 is the hardest to amass. It’s not just him, though. Many people who have grown their wealth believe this to be true and the same thing is often said about achieving the first million. Once you reach $100,000, the next one tends to come much more quickly. Before you know it, you have $200,000, $300,000 and $400,000. Then once you hit the million dollar mark, the second one is right around the corner and seems to take a fraction of the time as the first. This is reassuring for those of us who feel like their wealth is growing slower than they’d like but why exactly does it get easier? Let’s see why it takes a disproportionately long time to reach the $100,000 mark and discuss some things you can do to speed up this process so you become wealthy years sooner

Have you ever wondered how your finances stack up to the average person? What’s the average amount others have saved for retirement? How does your income compare to what others make in a year? What about your spending? Taking a look at these figures will give you further insight into your situation and they can be used to gauge whether you’re ahead of the average person financially. Pay attention because some of these are pretty surprising.