The key to building your wealth is much more than earning more money. We want to show you how you can become a lot wealthier on the same income.
1. Change your way of thinking- Stop thinking in this order, bills, spending, then saving but rather saving, bills, then spending. Figure out how much you need to save, then pay your bills, and lastly you can spend the remaining money on whatever you need. You don’t need to save an outrageous amount of money every month. Start small with $50, you’ll be surprised at how much of a difference this can make. Once we start seeing progress our likelihood to keep repeating this behavior increases.
2. Set specific Goals & know where you want to end- Is your goal to buy a house or be able to go on a trip to Hawaii next year? Whatever it is, you should have a specific goal in mind that you want to reach. Imagine yourself achieving that goal and then break it down into small steps of how to get there.
3. Know what’s coming in and what’s going out- This might be something that seems self explanatory, however when payday comes most people don’t know how much money will actually be deposited. Read your pay stubs in advance and know what to plan for. Missing a few days of work could be detrimental if you are living pay check to pay check so you have to be prepared in know what is coming in and what is going out.
4. Get out of Bad Debt- Bad debt can have a lot of harmful effects on your financial situation. It can lead to a poor credit score and will cost you extra money as they tend to have higher interest rates.
5. Consult an expert- Having someone outside of your personal finance situation give you advice might be just what you need to start building up your wealth again. A financial planner can help you stay on track and help you understand the answer to hard questions. They will give you specific tips
Stop worrying about the things that aren’t in your control and take advantage of the things that are. We hope with these simple things you are able to better build your wealth!