Building wealth is actually quite easy. You don’t need to have a lot of riches to accumulate wealth; you just need drive, determination, and discipline. Let’s look at 6 proven wealth building strategies you can put to use today.
Set Your Own Payment Aside Before Anything Else. If you never set aside money before you pay your bills, then you may never get any after these payments. If your employer has a 401(k) or 403(b) plan, enroll in it and set up a reasonable percentage to invest. The money will be deducted before you see your paycheck, so you won’t feel the loss so much. If you can, maximize your contribution.
Save Now. The earlier you start to save, the more money you will accumulate. If you weren’t able to save much until your kids were grown, you can still make up for it until your retirement.
Get Rid of Debt. It’s best not to have any debts when you start building wealth. 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. Ideally, you should pay your debts first and implement an investment strategy.
Select The Right Mortgage For You. If you don’t plan on keeping your house for a long time, then you should find an adjustable-rate mortgage because the rate will be lower than a fixed-rate mortgage. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb.
Build An Emergency Fund. Emergencies can wreck well-laid plans. Set aside up to six months of your income to live on in case catastrophe hits. If you don’t have an emergency fund, you would be likely to take on debt, cash in your retirement accounts, or sell valuable investments. You would have difficulty recovering from this quickly if you do not have a good back-up plan.
Protect Your Assets. You can lose a healthy portfolio if you aren’t properly insured. You have to make sure that your life, health, homeowner, and disability insurance is enough to cover 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 prepare for the future by applying these 6 wealth-building strategies now.