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Top habits of the wealthy - Part 2

1. Start saving for kid's college as early as possible

College savings accounts and plans, like a 529 plan (US) or RESP (Canada) help jump start children’s future education early so there is less of a financial burden years later.

These plans also allow tax-free withdrawals when you take out money to pay for college.

By getting started early, you can save a significant amount of tax savings. The power of compound returns can be so beneficial, so get started early on. 

2. Review employer benefits, take advantage of all of it

Many companies offer more than just retirement plans which will help save money and even invest to earn more. Do review the employer provided benefits thoroughly. 

Employee Stock Purchase Plans (ESPP): An employee stock purchase plan (ESPP) is a program in which participating employees can purchase company stock at a discounted price. Employees contribute to the plan through deductions which build up between the offering date and the purchase date.

Employer retirement match: Do make sure you are contributing enough to match any employer contributions. The match is essentially ‘free’ money. 

Employer life or disability insurance: Your employer’s group plans can offer significant savings versus buying these insurance policies individually.

Employer Health Savings Account (HSA): Some employers will match your HSA contributions up to a certain amount. Your contributions are tax-deferred.

Employer legal and family services, wellness programs: See if your employer plan offers legal services. If you ever need to have estate planning documents prepared, such as wills or trusts, you can save money in attorney fees if you use the legal services offered in your benefits plan. Many employers are providing a variety of new offerings in education, wellness, family planning and expanded time off.


3. Stay well-informed about money

The wealthy have a basic understanding of their earnings and spending, what they own and how much their investments cost.

For several people, saving and investing money can be intimidating. Don't be afraid to seek advise and professional opinion. Hire a financial advisor if needed. 

4. Find other income streams 

Having investment portfolios with other assets, such as rental properties, investing in dividend stocks, creating e-courses provide passive income. Check my bio for step by step on 6 different ways you can make money online. I generated 4K last month with #6 in the book.

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