1) Own your own home
Home ownership helps you build wealth in at least two ways. First, real estate is an asset with a healthy long term track record. Second, mortgage payments usually help you build equity and are therefore a form of forced savings.
2) Set goals, prioritize and focus
I figured out in the first year of my relationship that if you set goals, prioritize and focus your financial goals are far more likely to be achieved. I’ll repeat this. If you set goals, prioritize and focus, you WILL achieve your financial goals.
3) Invest in stocks
Over the long run, owners come out ahead under our system of democratic capitalism. To get maximum return on your money, you have to have some exposure to common stocks. Why? Making money on the appreciation and on the dividends will help improve your bottom line.
4) Don’t spend more than you earn
This is a no-brainer. If you have £100, but rack up debts of £500 on your credit card, then you’re in the red. Doing this over the long term is a recipe for bankruptcy. But if you got £100 and only spend £80, then your bank account is healthy and you’ll be happier, more in control if your life and better prepared to take whatever financial challenges come at you.
5) Pay off high interest debt
Usury sucks. Many credit card companies are usurious and attempt to engineer you into an agreement whereby your borrowing terms are stacked in favor of credit card companies. Other lenders like payday loan companies do essentially the same thing. In some of the arrangements, the borrower will be forced to pay upwards of 200% or 300% interest on their loans. If you’ve got high interest credit card debt or payday loans, pay them off immediately. Bite the bullet, sell some stuff, beg, do what you have to, but pay these types of obligations off immediately.
Showing posts with label wealth building. Show all posts
Showing posts with label wealth building. Show all posts
7 Secrets to Building Your Wealth
Here are my seven secrets to help you in building wealth for your future:
Secret 1: Start saving now
Spend only £9 out of each £10 earned. By saving one-tenth, your bank balance will start to increase, your debts will reduce and you will build a capital base for worthwhile investments in the future. You need to pay yourself first, before even paying expenses - so always put this 10% away into a savings accounts immediately.
Secret 2: Control your expenditures
You need to budget your expenses. No matter how much money you earn each month, make sure you have enough money to pay yourself first (remember, save 10%) and can afford the necessities - food, shelter, clothing, etc. Wealth building requires discipline and self-control
Secret 3: Make your saving money multiply
Once your savings build up, start investing that money so that it works for you. Look into mutual funds, stocks and property. At the very least, put it in an ISA and shelter it from the tax authority. Your money should work for you.
Secret 4: Guard your money from loss
Invest your money where the principal is reasonably safe and where you can get a good return. The first rule of building wealth is never to lose it!
Secret 5: Own your own home
This is simple. You should own your own home rather than renting and handing over money to a landlord. Owning your own home gives you a sense of pride and can enrich your life.
Secret 6: Ensure a future income
One day, you current earned income will STOP! Therefore, you must create wealth for your future. Contributing to a pension and investing in property are great long-term wealth creation strategies.
Secret 7: Increase your ability to earn
You can increase your ability to earn by improving your skills, experience and paying down debt. Becoming more wiser and skillful will help improve your positioning in life.
Secret 1: Start saving now
Spend only £9 out of each £10 earned. By saving one-tenth, your bank balance will start to increase, your debts will reduce and you will build a capital base for worthwhile investments in the future. You need to pay yourself first, before even paying expenses - so always put this 10% away into a savings accounts immediately.
Secret 2: Control your expenditures
You need to budget your expenses. No matter how much money you earn each month, make sure you have enough money to pay yourself first (remember, save 10%) and can afford the necessities - food, shelter, clothing, etc. Wealth building requires discipline and self-control
Secret 3: Make your saving money multiply
Once your savings build up, start investing that money so that it works for you. Look into mutual funds, stocks and property. At the very least, put it in an ISA and shelter it from the tax authority. Your money should work for you.
Secret 4: Guard your money from loss
Invest your money where the principal is reasonably safe and where you can get a good return. The first rule of building wealth is never to lose it!
Secret 5: Own your own home
This is simple. You should own your own home rather than renting and handing over money to a landlord. Owning your own home gives you a sense of pride and can enrich your life.
Secret 6: Ensure a future income
One day, you current earned income will STOP! Therefore, you must create wealth for your future. Contributing to a pension and investing in property are great long-term wealth creation strategies.
Secret 7: Increase your ability to earn
You can increase your ability to earn by improving your skills, experience and paying down debt. Becoming more wiser and skillful will help improve your positioning in life.
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