Making More Than You Spend

Decide if you want to open up an investment/savings account and even a “betterment” account. Both of these accounts are a great way to invest in your future. Also, find simple ways to spend less than you make.

How To Invest Wisely

To keep this as simple as possible, in my opinion you need at least 4 asset classes. They are:

a US large stock index fund
A US small stock index fund
A foreign stock index fund and
A short or medium term bond fund

And if you have the money, it’s often a good idea to invest in real estate such as your own home.

The Art of Accountability

Consider creating accountability with a partner by having you each answer the questions: Did you break any of your promises or commitments from last week? And question two: what new commitments have you promised to complete by the end of this next week?

Stocks, Bonds & Low-fee Funds

Here are four funds I can highly recommend:

Vanguard 500 Index: I suggest you put the bulk of your investment money in this fund.
Vanguard International Growth Index Fund: just so you have some global diversity—because sometimes other countries are doing well when the U.S economy is not.
Vanguard Total Bond Market Index fund: Putting 20 to 40% of your money in a bond fund like this is a good idea in case stocks aren’t doing well.
And If you don’t own real estate, you might consider putting some money in what’s called a Real Estate Investment Trust index fund such as Vanguard’s First Trust S & P REIT index fund.

If you invest some portion of your portfolio in each of these funds, you’ll have some diversity and an almost guaranteed good return on your money over the long term.

Maryssa Trumble

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