Everyone wants to be wealthy. Being able to buy whatever you want, whenever you want; that would be the life. But, not everyone knows how to get there. Being wealthy isn’t just about what you were handed when you were born. There are self made rich people out in the world that were not born with a silver spoon. If you want to be able to build a nice cushion for you and your family there are some sacrifices you are going to have to make. Investing your finances and asset management is always recommended to be done with financial advisers. However, here are a few things that you could implement in order to try and grow your wealth quickly:
- No Car Payments
If you don’t have a car payment, well, you don’t have that payment, but you always don’t have to pay an arm and a leg to keep in insured either. If you can buy a car outright this is the best way to do it. Used cars are a lot cheaper to buy outright than a new car. Even if you think you can afford the car payment and insurance, car loans have such incredibly high interest rates that your car could end up being the highest debt in your household. Okay, a car payment is ‘normal’ but it won’t help you get rich that’s for sure. Own a car outright and your wallet will reap the benefits.
- No Mortgage Payment
At fist, you should rent. Renting offers a lot more flexibility until you are sure of where and how you want to settle down. Typically, a house loan lasts 30 years and what happens if you want to sell it and can’t? If you need to move for family reasons or a job change and can’t sell your house, then you are stuck with two house payments eating away at your wealth. If you are not sure about staying in a certain place, choose to rent instead until you are ready to take that step and invest in your first home. Don’t jump the gun and end up paying to much for a house you end up being stuck with, simply because you were desperate to buy and didn’t wait.
- No Frivolous Spending
Don’t buy things that you don’t need. This is most people’s downfall. No one wants to wait for anything good. They would rather spend it now. The problem with that is, most impulse buys are unnecessary. If you see something you want, don’t buy it right away. Give it a few days and think about whether or not you really need it or if you just want it. Compare it to how much you want to build your wealth and ask yourself if it is worth it. Even if it only seems like a small amount of money that you would be spending. Small amounts add up and these small amount is what stops people from becoming as wealthy as they could be.
- Save Some Income
This might seem fairly simple from if you have a lower income, it will be difficult to get your head around. Within your budget, you should set aside a certain amount from each paycheck for savings, just like you do for bills. Even if you can only put $50 a check into savings, do it. All those little $50 will add up and one day you will be able to begin putting in larger and larger amounts. Think about what things you can sacrifice in order to put more money in the savings account to grow it quicker. The more you put in to the savings the ‘richer’ you become as you stop living paycheck to paycheck and become more responsible regarding saving and spending.
Follow these simple tips and they will begin to set you on the right place to becoming wealthy. Having a plan is essential to growing your riches. It may be quick or it may take awhile, but if you stick to your plan and your budget, you will be pleasantly surprised at how quickly your checking account and savings account will begin to grow and increase. Just keep at it and do not ever give up!