While wealth may conjure different dreams, we all aim to achieve the same fundamental goal: live comfortably, debt-free, and well-prepared for whatever the future may bring.
So how do you get there? The good news is, you don’t need to make a big salary or have a lot of money in the bank to start building wealth. Though wealth may sound grand, at its simplest form, it means your accumulation of assets, no matter how much. It takes planning, dedication, and a little time to begin building the kind of wealth that will benefit you and your family in the long run. A financial professional can be an invaluable resource to help you achieve your financial goals. He or she can help you create a strategy, stick to it, and devise strategies for making your savings work smarter through investments and insurance.
To create the kind of wealth that allows you to achieve your financial goals, you must be willing to stick to a strategy and accept guidance.
How to Start Building Wealth
Create a Budget - Write down a basic accounting of how much money you bring in vs. how much goes out. Earmark every dollar of income for a specific purpose, including living expenses, savings, ‘fun money,’ and any debt elimination. Begin building an emergency fund with the goal of saving enough to cover your expenses for at least three months should you lose income, have to cover a major living expense such as a house repair, or if you get sick or injured.
Eliminate Debt - If you have loans or carry credit card debt, make a plan to eliminate the debt as quickly as possible, in order to free up more income for saving and investing. Rather than paying interest, we want you to be earning interest.
Invest wisely - Choosing to invest is a big step. You are looking for growth but may have to accept that it comes with some level of risk. You can possibly grow your wealth, but you can also experience a loss in wealth. Also, time needs to be considered when it comes to investing so you invest in solutions based on your risk tolerance and needs. Enlist the help of a financial professional to explain your investment options and design a strategy that can help get you closer to your goals.
Use insurance - Whether purchased individually or through an employer, different types of insurances can actually help you build wealth faster!