I remember sitting in the car with my rather wealthy friend last year, overhearing her phone call with her financial adviser. I only got bits and pieces of it, but what I gathered was that she’d be putting about 100K into a stock, and would be receiving interest of about $600 a month. Just like that: she’d just be receiving $600 a month in her sleep. I had to work long hard hours to make that kind of money, and she would just see it deposited into her checking account every month, because she was able to invest so much. In that moment, I felt, “Well, investment-related income is only for the wealthy.” But you know what? It isn’t. In fact, my friend only had that money to invest because she started growing the very little she had about ten years prior. She told me a bit about that, and I spoke to my own financial adviser about small ways to grow money when you don’t have much of it.
Invest more in your 401K
The nice thing about this is that your job will do this for you. You can just ask them to put a higher percentage of your paycheck into your 401K each month, and you won’t even feel the burn. You don’t need to make the decision every month to do so. It will be automatic. Plus, some companies match what you contribute, which can really make a difference.