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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Hard Work, Sacrifice Builds Wealth

Cox News Service

Being wealthy means having lots of money. Unless you inherit it, win the lottery or obtain it via nefarious ways, acquiring wealth usually means lots of hard work, sacrifice and determination.

You also have to know yourself.

“If you are unsure what is stopping you from becoming wealthy, you will remain a victim of money,” says Martin J. Pring, author of “Investment Psychology Explained.”

“If you do not know what you want from money, it is unlikely that you will be able to achieve your financial goals. To follow in the footsteps of the truly great traders and investors, you will have to change your habits and attitudes. Otherwise, you will remain at the starting gate.”

First, set priorities.

For example, determine not to borrow money for anything, except to buy a house. If you don’t have the money to buy something, save until you do.

Then follow these four steps to accumulating wealth, compiled by James E. Stowers, founder of the Twentieth Century group of mutual funds:

Invest as early as possible. It takes a lot less money to accomplish what you want, and you have more time working for you.

Be determined to save on a regular basis. It’s an easy way to accumulate wealth.

Begin investing with the largest possible sum you can. You will have more money working for you over a longer period.

Invest at the highest rate of return you think you can safely get on your money over time. The higher the rate, the less money it takes to accomplish what you want.

For long-term investors, such as those building a nest egg for retirement, stocks and mutual funds that invest in them are the way to go.

Why?

History shows that stocks advance in six years out of every 10; in 72 percent of all five-year periods; and in 77 percent of all 10-year periods.

After 20 years, according to performance data, there’s a 100 percent probability of making money in stocks.

The best way to invest in stocks is through mutual funds.

They are simple to buy, offer diversification; and you can start with a small amount of money.

Many mutual funds can deduct a predetermined amount - as little as $25 monthly - from your bank account.

So, get started. Then remain patient, and give your investment time to grow.