6 Strategies For Building Wealth

6 Proven Strategies For Building Wealth

Building wealth requires focus, drive, determination, and discipline. Most people lack the financial fortitude required to create and maintain wealth. There is no magic button you can push to create instant wealth. Yes agreed with the internet today, most people have been able to create massive wealth, however, it requires lots of work and sacrifice to achieve this.

Here are 6 strategies you can apply in your life today to create your own wealth:

1. Pay Yourself First

If you must set aside a portion of your paycheck before you start paying your bills. 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 come out before you see your paycheck, therefore the “loss” of discretionary income will be less noticeable to you. Maximize your contribution if you are able, especially if your employer matches your contribution.

2. Start Saving Now

The sooner you start to save, the more you will have later in life. If you are not 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

Before you build up your savings it is best to get rid of your debt and then embark on your 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. Get The Right Mortgage 

If you plan on holding onto your home for a short period of time, an adjustable-rate mortgage might be a better option as your rate will be lower than a fixed-rate mortgage. Most homeowners only live in their homes for an average of 7 years. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb.

5. Build An Emergency Fund

Emergencies happen and nothing wrecks the best-laid plan more than an emergency, particularly one that costs you a lot of money. The rule of thumb is to set aside up to six months of your income to live on in case of an emergency. Without an emergency fund, you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments.

6. 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 are sufficient to meet your needs. All it takes is one legal judgment against you to wipe out your assets.

So there you have it, creating wealth requires having a plan, staying disciplined, and focused on your goals. Applying these 6 strategies is the first step on your journey of wealth creation, remember, you deserve to be wealthy!

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