Building wealth is as simple as saving a little bit here and a little bit there. You need not have great riches in order to accumulate wealth, but you need to have the drive, determination, and discipline to successfully increase your wealth. Let’s look at 5 proven wealth building strategies you can put to use today.
1. Pay Yourself First:
If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. Set up a reasonable percentage of your income to invest. Increase this amount with increase in your income.
2. Save Now:
The earlier you start to save in your life, the more you will have later in life. Of course, if you aren’t able to save much until after your children are grown, you can step up your savings until you retire and still have a decent nest egg.
3. Get Rid of Debt:
Even before you build up your savings it is best to get rid of your debt first before starting a wealth building campaign. If your credit card rate is 14% you will find it difficult to find any investment that gives you a return that exceeds that rate. It would be better for you to pay down your debt first and then implement an investment strategy.
4. Build An Emergency Fund:
Nothing wrecks the best laid plan more than an emergency, particularly one that costs you money. Set aside up to six months of your income to live on in case catastrophe hits. Without an emergency fund you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Try recovering quickly from this sort of hit to your wealth without an effective back up plan.
5. Protect Your Assets:
You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your health/dental, homeowner, life, and disability insurance coverage is adequate to meet your needs. All it takes is one legal judgment against you to wipe out your assets.
Instance riches come to a few, but most riches are realized after careful planning and effective management of your resources. You can properly prepare for the days ahead by implementing these five proven wealth building strategies today.
– Admin, Wealthio.
