I actually believe that wealth is a state of mind and that rich is a number.Riches can come and go but wealth is a solid foundation
Your definition may vary from mine or from your neighbors and that's okay,whatever your definition is,the step for building wealth are the same.They are based on solid financial principles that are common in all wealthy people
Tips for building your wealth from scratch
1.Get out of debt
Wealth is defined as having an abundance of material possessions or money,webster and I will have to agree to disagree on this one.Material possession do not make you wealthy.you are not weathy because you drive a certain car,live in a certain stores.As a matter of facts,most of these things can prevent you from achieving wealth and financial freedom,in my research,I have found that most people who look like they are wealth really aren't.
This is because they have used to maintain their lifestyle,the best way to get a clear grip on your financial picture is to determine your net worth,This is all of your assets(home,cash,retirement,etc) minus all of your liabilities(,everything you owe),this is your actual wealth,most people when they do this formula,end up in the red,This is because they have mortaged their future to support their current lifestyle
2.Spend less than what you make
If you speñd every money you make,you don't have anything left over for a rainy day or to sock away for your future that time when you will no longer bring in a steady cash flow,The only way to have money is to set aside some of your income for another day _a day when it may rain,a day when you can't work, or a day when you don't want to work anymore, make it a priority to keep your expenses at less than 80 % of your income.This is a good sweet spot for wealth building
3.Build your budget
Even millionaires budget.They may not write it out anymore,but I guarantee youvwealth people have limits in every category of their spending even if it's in their head,This is the best way to make sure you stay below the 80% number we spoke about before,if you just spend your money willy nilly,you won't have any clue where it's going and inevitably will come up short most of the time.with a simple budget you can know where every money is going
4.Use the system
Investing is the key to wealth building once you set money aside.Investing simply helps your money make money.
5.SET GOALS
...Without goals,we can't see the reason behind doing step 1-4,goals gives us a purpose,goals help us reach our dreams,Goals give us something to aim for,Dream your dreams then set the goals that you need to set to reach those dreams
..make sure that your goals are written, realistic, adjustable and specific
...Building wealth isn't based on our circumstances our past,where were born,our parents or any other environment factor
..Building wealth is based on our decision and our belief that we can
...you can start today to make decisions,goals and choices that will bring you to a life of wealth and financial freedom,yes you can!!
Your definition may vary from mine or from your neighbors and that's okay,whatever your definition is,the step for building wealth are the same.They are based on solid financial principles that are common in all wealthy people
Tips for building your wealth from scratch
1.Get out of debt
Wealth is defined as having an abundance of material possessions or money,webster and I will have to agree to disagree on this one.Material possession do not make you wealthy.you are not weathy because you drive a certain car,live in a certain stores.As a matter of facts,most of these things can prevent you from achieving wealth and financial freedom,in my research,I have found that most people who look like they are wealth really aren't.
This is because they have used to maintain their lifestyle,the best way to get a clear grip on your financial picture is to determine your net worth,This is all of your assets(home,cash,retirement,etc) minus all of your liabilities(,everything you owe),this is your actual wealth,most people when they do this formula,end up in the red,This is because they have mortaged their future to support their current lifestyle
2.Spend less than what you make
If you speñd every money you make,you don't have anything left over for a rainy day or to sock away for your future that time when you will no longer bring in a steady cash flow,The only way to have money is to set aside some of your income for another day _a day when it may rain,a day when you can't work, or a day when you don't want to work anymore, make it a priority to keep your expenses at less than 80 % of your income.This is a good sweet spot for wealth building
3.Build your budget
Even millionaires budget.They may not write it out anymore,but I guarantee youvwealth people have limits in every category of their spending even if it's in their head,This is the best way to make sure you stay below the 80% number we spoke about before,if you just spend your money willy nilly,you won't have any clue where it's going and inevitably will come up short most of the time.with a simple budget you can know where every money is going
4.Use the system
Investing is the key to wealth building once you set money aside.Investing simply helps your money make money.
Maoni
Chapisha Maoni