Secrets to Building Wealth

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This is a guest post written by Charles from CreditDonkey.com. These are some great tips for building wealth, and if you follow these, you will no doubt see a substantial improvement in your financial statements!

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Many businessmen who have successfully built current, and future financial
empires would probably tell you that they started from humble beginnings. First, by learning the age old adage that hard work pays off. It takes time, persistence, and a lot of effort to build up wealth. Where should you begin? With the basics. The following eight simple tips will help you on the road to a more successful financial future.

  • Learn To Save Early On: The most basic, and simple principle for any financial determination is to learn the value of savings. Essentially, saving money is making money. Especially when it acquires interest. Learn to set aside at least 10% of your earnings every single month. That way you always have an emergency fund,
    and money set aside for anything that may come your way.
  • Be Persistent: As with anything, make your financial pursuits a habit. Persistently save money, pay off debt, and find ways to create wealth. Simply being content with the same amount of money every single year is foolish. Instead, constantly be searching for ways to increase your income.
  • Stay Out of Debt: At all costs, do whatever it takes to stay out of debt. Not only does debt drain out your wallet, but it’s a huge stress factor. It is always better to avoid debt, so that it is not hanging over your head, and preventing you from pursuing other interests.
  • Find a Mentor: Have someone that keep you accountable financially. Try to meet up at least once a month to discuss your progress, and seek wise counsel. That way you are always learning, and consciously know you will have someone to answer to when you are not making wise financial decisions.
  • Set Financial Goals: Your goals in every aspect of life are important, including your financial goals. Without them, you will tend to lose track of your money, and lose interest in gaining wealth. Set new goals for yourself every six months or so, to keep your perspective fresh.
  • Learn To Invest: Meet with your financial adviser, and start learning about different investment options. This is a great way to invest in your future. While it may take some time to learn, once you understand the basics, you can be well on your way to a solid future in investment options.
  • Invest in Your Education: No, your education should not stop just because you graduated from high school. Invest in classes that can help you pursue better career options, advance the corporate ladder, and beyond. Take action, make mistakes and invest in yourself. A few dollars invested in your education can benefit you for the rest of your life.
  • Own What You Buy: Buy only what you can afford. Pay off your credit card balance on time.

Overall these are basic steps that anyone can benefit from. By taking small steps at first, you can eventually advance to a more solid future, while building wealth. Be sure to plan your action out according to the above information, and you will never be sorry. Start today, to ensure a comfortable future.

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Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

9 Comments

  1. Those are all great starting points. Thank you for providing them.
    I like tip #4 the best (Find a Mentor) but I’m thinking of changing it. Many of my friends are financially responsible so I think meeting up with one another to keep each other on track would work just as well.

    -Ravi G.
    Ravi Gupta recently posted..FNBO Direct Lowers Rate to 100

  2. @Ravi, it’s great to surround yourself with people who are financially responsible. Keep it up!

    @Debt Free Divas, it’s funny how the old becomes the new. I’m sure our grand parents wouldn’t hesitate to “own what you buy”.
    Charles recently posted..Top 8 Cash Back Credit Card Myths

  3. Determination generally is the most important trait of successful people. It allows us to overcome the various obstacles that just naturally come up.
    krantcents recently posted..Cash or Credit

  4. I agree that everyone should learn to invest, but you shouldn’t necessarily meet with a financial advisor — there’s lots of free information online, and lots of great books, that will teach you investment fundamentals. If you do see a financial advisor, see a fee-only one, not one who gets commission for driving you to certain funds.
    Paula @ AffordAnything.org recently posted..The Biggest Accounting Mistake Small Biz Owners Make

  5. From the “Millionaire Next Door”:
    – Stay married. Divorce is expensive
    – Buy suits off the rack
    = Buy cars by the pound
    – Outsource routine chores. Spend the time saved doing financial planning.
    101 Centavos recently posted..Raised Garden Beds on the Cheap

  6. Here’s a tip, start saving for retirement in college! So many students squander this opportunity. If you start then and regularly invest, you’re looking at $4 million plus by the time you’re 65.

    • Teach your children the value of money, encourage them to get a job even while in high school, and match every dollar they save (or something along those lines). Teach them about credit, how it is usually a bad thing, but can be good if used sparingly and responsibly, and teach them about simple budgeting. Budgets are extremely beneficial, and a lot easier to stick to when they become habit, so start early! Sorry for the rant, but I believe everything I just said is not being taught to most children/teens today, leading to adults stuck in debt with little put away for retirement, etc.

  7. Agreed^


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