The luckiest people in the world are those who were taught as children or learned early in life how to save money and make it grow into wealth. Working to obtain a wealth of money is one thing but knowing how to grow it into even larger amount is another. Someday, we will want to retire and live the good life instead of working until we die. We may even want to leave a financial legacy to our loved ones.
This does not happen magically. It doesn’t happen by living short-sighted. We must be forward thinkers. If you are already in your midlife then it is still not to late to create long lasting financial security for yourself and your loved ones. I’ve heard it said many times by jaded individuals, “It’s all going to turnout how it’s supposed to. (sigh)” That is a fatalist’s view. We can take our destiny into our own hands and plan for the life we want to live and someday leave to our family.
Let’s talk about five simple tips for growing your wealth that you can get started with right now.
1) Create a budget
It seems the majority of people I talk to about finances fly by the seat of their pants. They don’t have a budget yet they wonder why they never have money when they need it. Bills will arrive and they seem surprised by the timing or the amount. They have no road map to financial success. Tip number one is to create a budget that allows for all expenses (yes, even for your Starbucks).
Don’t forget to allow for savings so that you can start investing to grow your wealth.
2) Live on less than you make.
That’s right, you don’t have to spend everything you earn. Over spending is your worst enemy for growing wealth. You absolutely need a budget! The budget you create can have a little fun money allocated but it’s vital that at least 10% of your income be saved as an emergency fund. This 10% nest egg is money that you could put into a safe investment for the future.
Delayed gratification isn’t a very popular concept in these days of instant gratification. However, it is one of the most important of the tips for growing your wealth. When you are ready to retire and enjoy time free from work you will be glad that you had a disciplined plan for a successful retirement.
3) Live Honestly – watch your credit
One of the five tips for growing wealth is to keep interest fees and redit to a minimum. The best way to live life is honestly. If you can’t afford to pay for that new dress or suit now don’t charge it; or if you do use a now fee credit card and pay it off at the end of the month.
If you truly want to grow wealth it’s important to avoid paying unnecessary interest. Sometimes interest must be paid such as when buying a car or home however paying monthly interest because we’re living beyond our means is simply foolish.
4) Pay off your car and home faster
This is just simple math. By making double the normal mortgage or car payments you can save thousands of dollars for these items. There isn’t a lot more to say about this. It’s just one of the smartest things you can do to avoid throwing money away.
5) Start your own business
The tax benefits of owning your own business can save you a lot money every year. Even when you are only working the business part time you can write off part of your house payment, your utilities, computer and phone expenses. Many people do not understand how much money they can save by keeping track of their business expenses. Some of these deductions may depend on what kind of business it is that you are operating. Another plus about having your own business is that you can use some the money to build up your investments. Yes, the benefits of being an entrepreneur are huge.
These five tips for growing your wealth can give you a happy, balanced kind of life from the time of your youth through your retirement years. If you need help getting started it’s a good idea to consult with your trusted accountant.