Anita Kinoshita opened her first brokerage account in 2021. She waited until this point because she prioritized maximizing her tax-advantaged accounts (401k and Roth IRA) first. Only after maxing out contributions to these accounts did she begin investing in a brokerage account, where investment gains are subject to capital gains tax.
This video details Anita Kinoshita's personal journey to accumulating $100,000 in investments within four years, despite not earning a six-figure salary. She outlines a three-step blueprint designed to help others achieve similar financial milestones, emphasizing the importance of prioritizing investing and optimizing expenses.
Prioritize Investing: The speaker highlights that prioritizing wealth building over other financial goals (like homeownership) is crucial for accelerating investment growth. She emphasizes that clear priorities are more important than income level.
Reduce Top Expenses: Significant savings can be achieved by focusing on reducing major expenses such as housing, transportation, groceries, and taxes. Even small percentage reductions in these areas can substantially impact investment capacity. She provides examples from her own experience.
Optimal Investment Order: The speaker advocates for a strategic investment sequence: employer 401k match, Health Savings Account (HSA), Roth IRA, and then maximizing 401k contributions before allocating funds to a brokerage account. This approach maximizes tax advantages.
To answer your question, Anita Kinoshita employed several strategies to reduce her top expenses:
