At 31 years old:
- I was broke
- I had $260k of debt
- I had a negative net worth of $99k
Below is how to turn your money beliefs upside down:
1. Don't let your perspective limit you
Do you believe:
- everyone has a car loan
- you'll have a car payment the rest of your life
- people like you aren't good with money
- all millionaires inherited their money
If you believe any of these, it's time to see things differently
- grow your money tax free
- take advantage of compounding
Below are 5 things you need to know about Roth IRA's:
1. You withdraw your money without taxes
You will pay tax on the money you put into your Roth IRA, however, every dollar of growth is tax free.
That means when you pull this out in retirement, you won't pay taxes on any of these funds, unlike Traditional accounts.
2. You can withdraw your contributions anytime without penalty
Some people use their Roth IRA's as emergency funds, because you can withdraw the funds you've put into the account at any time without taxes or penalties.