After bills, I have $3,000 in loose cash each month that I put in savings. I have $51,000 in liquidity, and am ready to start investing. Is this a good start? How do the rich, with million dollar homes, get to that point?|||Are you 100% debt free, including car loan, credit cards, student loans? If not, get rid of those first. If so, use Dave Ramsey's baby steps to build wealth.
http://www.daveramsey.com/new/baby-steps鈥?/a>|||No*. Next question. People with million dollar homes are either super rich (actors, recording artists, sports stars, con artists [ref wall street, enron, failed banks, ponzi schemes, lawyers, politicians, some religious and secular leaders], etc) or have lived in the 100 year old family home which has reached the million dollar value thanks to inflation.
*You might make a rookie mistake and lose it.
P S $36,000 per yr x 6 yr = $200,000; so it does NOT take 15 - 20 yrs to get there .. as per ___|||That is an excellent savings situation you are in.
With what you have saved up, you can invest it - and be in very good position to retire early and in comfort.
Just do not fall into the trap of consumption for status, power, or image's sake. That will drain your savings so quickly you will not believe it.|||Invest some of that in fixed annuities. It might only 3 or 4%, but you can't lose a dime. You'll have it tied up for 7 or 8 years but you can withdraw 10% without being penalized. You would have to report that part as other income when you do your taxes. Do not play the stock market.|||Very simply. Invest half of your monthly gross, or all if your interested, and 2/3 of your liquidity. Assuming 10% growth annually, you'll have 200k in about 15-20 years. Congrats.
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