Wealthy Women Daily Invest in Your Dream Life
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Clear your mind and dump all the traditional thoughts you have about wealth.
Here’s the truth: you don’t have to be an old, white man in a suit and tie to build wealth.
You can do it right now – right where you are. All you have to do is move past the intimidating lingo and be intentional about building wealth.
Need some tips to get you started? Here are 10 secrets no one probably told you about wealth building:
1. You Can Start Now
Why invest later when you can invest now? Time is your best friend when it comes to investing. Investors who start early have a chance to learn as much as they can, take advantage of compound interest, and expand their asset portfolio over time. The longer you wait, the more money you allow to slip under your toes.
2. You Don’t Have to Be Debt-Free
You can’t wait until everything is “perfect”in your financial life before you start building wealth. You may have outstanding debts on your balance sheet but that shouldn’t stop you from paying yourself first and stashing a small percentage away for a “rainy day” or “sunny investment opportunity”. In order to build wealth fast, you have to be willing to decrease your liabilities while simultaneously increasing your assets.
3. It Should Be Exciting
The thought of never living paycheck to paycheck, being able to invest in your community, and contributing to the progress of the next generation should excite you. Building wealth shouldn’t feel like a chore; it’s a choice that should empower you to live the life you have always imagined.
4. It Doesn’t Need to Take Decades
Building wealth probably won’t happen over night but it doesn’t need to take 50 years to come to fruition. You can start right now with the resources you have at your disposal. Building wealth is an action. The more steps you take today, the earlier you’ll be able to enjoy the fruits of your money. Make sure you work with an experienced income strategist who can assess your situation and expose you to the different paths you can take to accumulate wealth in a specific period of time.
5. Have the Right Financial Plan
There’s no one size fits all financial plan but there are certain things you can do to expedite your progress. For example, a 30-year mortgage may be a horrible idea for most Americans. It ties up your money and extends the amount of time and money you spend on a home. Because of the cost of borrowing money (interest), a $200,000 house could end up costing you $350,000 when you take into account the amount of interest you had to pay every month. Yes, you may get a deduction for tax purposes but is that deduction worth a $100,000 commitment in interest that could have been used towards your wealth building journey?
6. Earn More, Save More
If you make more money, you should save more money. Unfortunately, most people spend more money to keep up with the status of other individuals in their tax bracket. These habits cause you to jeopardize your net worth just to increase your self worth. How expensive is your self worth? Think about how you could increase your self worth if you were able to change the financial status of the next generation if you decided to save more.
7. Only the Strong Thrive
You have to give up the temptation of wanting to be like everyone else in order to thrive in the wealth building game. That might mean forfeiting costly Friday night parties, giving up overpriced fast food lunches, and foregoing luxuries that don’t add to your happiness. If you’re serious about building wealth, you can’t be in it to win it one day and then take a detour every other day. Building wealth is a mindset and you have to be mentally strong to keep going even when it’s not the most popular thing to do.
8. Millionaires Don’t Just Have One Job
It’s easier to build wealth when you have multiple income streams. If you only have one source of income coming into your pockets every two weeks, you have to work extremely hard to ensure you are “financially responsible” with every penny you earn. It’s also a huge risk when you are highly dependent on one source of income because one wrong move in the workplace can cost you your livelihood. Diversify your income sources by looking at ways you can create earned, passive, and portfolio income. Receiving Investment income is one way to make more money without adding another job to your schedule.
9. Retirement Accounts Aren’t the Solution
You can’t build wealth through retirement accounts. Being involved in your company’s 401(k) plan or opening up a Roth IRA account doesn’t make you a certified wealth builder. It’s just one piece of the puzzle in a well diversified portfolio of assets. If you’re thinking about retirement at a young age, that’s a great start. But it isn’t the last stop you need to make if you want to create wealth that lasts a lifetime.
10. Wealth is an Ongoing Journey
Contrary to popular belief, becoming a millionaire is not the final destination. You often hear people say that if they won a million dollars in the lottery they would quit their job. Well, that’s great! Getting a million dollars is one thing but maintaining it and creating wealth is another thing. Most millionaire lottery winners go broke in less than 10 years because they aren’t equipped with the information that will prepare the next generation for wealth. It’s a journey that requires a mental shift; this can’t happen overnight through luck.
Wealth is not about the money you have in your account. It’s about what you’re able to do for yourself and for others when you accumulate wealth. The first thing you need to understand is that building wealth is possible right where you are. You can start with the $20 or $2000 that you have in your account.
If you’re ready to test the waters and learn how to invest, you can open a brokerage account like Robinhood or sign up for wealth tips on-the-go below!
