Top Tips for Accumulating Easy Wealth

Some of these tips are obvious; others you may not have considered. All of them can add up to real wealth if used over time.

• Make sure you are contributing enough to get your 401k match! Not getting the match is like turning down a bonus check!


• Choose low cost funds, such as index funds. If you invest $10,000 in a fund that costs 0.2% a year, you'll end up with $45K in 20 years. If your fund costs 1.5% a year, you'll only have $34K.


• Fill your tank with regular gasoline. No matter what the manufacturer says, cars don't need pricier gas to perform well. Also, optimize your tire pressure and gain $.10/gallon.


• Track and maximize your credit score. It takes minutes to find out your score(s) online. Then know what you can do to raise it: fix any errors, pay down maxed out balances, increase your credit limits. Everything from credit card and loan rates to car insurance premiums are affected by your score, so you want it to be as high as possible. Mortgage rates are currently 6% if your score is 760, 6.5% with a score of 660, and 10% with a score of 560.


• Earn 5% or more on your savings by putting it in a high yield savings account or money market fund.


• Lose weight. Obese Americans spend 26% more out of pocket on health care than normal-weight workers. They also take nearly twice as many prescriptions and earn $1.42 less per hour. 100 extra calories a day costs you extra and adds 10 lbs to your waistline every year. So pass on those overpriced, unhealthy snacks on a regular basis, save yourself a bundle, and look/feel great!


• Buy used cars. New cars lose 30% of their value when they're driven off the lot. At least buy a dealership demonstrator-they've never been previously owned and are often only 6 months old or so, but you still get a substantial discount on the purchase.


• Automate your savings and put away at least 10% of your income every month (some for short term, some for retirement). Don't rely on your own diligence to remember to write that check to your Roth IRA or put money into your emergency fund at the end of every month. Have your savings and investments taken out of your checking account right after your paycheck hits it--or directly out of your paycheck--before you have the option to spend it! You'll never miss the money.


• Save money on beverages. Bottled water costs $1.50 a bottle at the store--or $.19 a gallon at home from your water filter. Make your own coffee at home (or drink the free stuff at work) and save a bundle too. And drinking store-bought alcohol at home is significantly cheaper than paying for bar/restaurant mark-ups. As far as other drinks go--sugary sports drinks, soda, etc.--cut them out entirely for a healthier, cheaper lifestyle.


• Lower your payments each year on everything you pay for--car insurance, home insurance, cable, gym membership, cell phone contract, credit cards, etc. Do some research and identify the lowest cost provider; then switch if your current one won't match the lower rates.
  

What are some other simple tips you have that can help you accumulate real wealth?