Three Tips to Maximize Wealth Accumulation

As with most things in life, making a few small changes can make a large impact on one's life over the long-term. In this article, I'm going to discuss five tips for those looking to propel themselves out of the middle class, to grow their nest egg and retire comfortably.

Make your cash work for you: having too much cash sitting on the sidelines is great for times of uncertainty, when one believes securities will be on sale in the near term, but in general, waiting on the sidelines is a poor long-term wealth accumulation strategy. It is much better to put your cash to work, and be patient, over long stretches of time.

Don't rack up balances on your credit card: investing borrowed money to acquire long-term assets (as in, getting a mortgage to buy a house) is generally perceived to be a good reason for increasing your debt load.

Steer clear from consumer debt, specifically high-interest debt like credit cards.

Have a "rainy day" fund set up: having a plan for how to pay the bills if an emergency arises in which one or both breadwinners in a household are unable to work is a very prudent idea.

In general, plan to have six months' worth of net income stashed away, as a buffer against life circumstances which will inevitably change over time.

Invest wisely, my friends.