3 Steps to Wealth Build

The difference between every generation’s financial successes or failures usually comes down to how they saved and spent. The current generation has taken a bad rap while inheriting one of the worst economic depressions in recent history. Success and failure is often measured by the implementation of knowledge, which makes knowing how to wealth build a key to securing one’s future. Using the knowledge here can help you start putting money aside and securing you a better more financially secure future. Here are 3 steps to wealth build, all starting with your base paycheck and moving on from there.

Step One: Make a Plan

While this step may seem a little obvious, a lot of people tend to just jump right into situations or ideas without giving it the right amount of planning first. Sitting down and working out your monthly or weekly finances is a great way to help start yourself on the road to wealth building. The key term is wealth building, which constitutes that you will be accruing monetary gains for an extended period of time. Do not force yourself into thinking that this is a get rich quick scheme. The key to this first step is planning out the stability in which you will be able to sustain wealth building long term. So take your time and review your numbers, this often overlooked step is probably one of the most important.

Step Two: Put Aside MoneyWealth Build 1

Put aside money every time you get paid. Seem simple enough, right? Depending on how frequently you get paid, will really decide the percentage you may be able to afford putting to the side that won’t interfere with living expenses. If you get paid weekly, you might be able to put aside as much as 15% of your weekly income. Bi-monthly perhaps only 7% to 10%, but every little bit helps because at the end of the day you are using it to build your own wealth. The most sound and practiced savings advice given to young people states: pay yourself first. The purpose being that out of all the money you are going to make to live, pay rent or your mortgage payments, and all your living expenses and bills; it is easy to forget that you are working towards a goal. That goal being not to work the rest of your life away! So the first step in building wealth is putting aside money. The purpose behind putting money aside is because you can use it to invest in yourself. This money that you are to be putting aside is not to be taken from your already allocated funds for retirement because you don’t want to lose the tax benefits that come from contributing to those funds.

Step Three: Invest in Yourself

Investing in yourself is not hard. Usually we define investing in ourselves as a long weekend or saving up for a vacation and while that too serves an important purpose, we are focusing in on wealth building. So when I say invest in yourself, I mean take the money you are putting aside and invest it in something that will appreciate over time. We are looking for stocks or bonds, or even hobbies that you can wisely invest your time and money into and see a return as profit. Whether you are looking at the more traditional ways of investing or the more current alternative ways of investing your money, it is important to understand that you are investing your money in what is essentially your future. Find something you are interested in and can turn into a long term investment, you are more likely to pay attention to how the investment will or can mature without feeling so stressed out. Often when investing in things we find interests us, we can eliminate the stress that comes with the uncertainty of what we are pouring time, effort, and money into. At the end of the day, you are looking to gain the biggest return you can on this investment, so why would you want to make that return be unneeded stress?

These three steps can help you find stability as well as success in wealth building for the rest of your working career. Understand that there is more than one way to help build wealth for your future but these three steps are to help you get there a little more wisely. Whether you choose to invest in yourself in the more traditional forms of investing or follow the trends that have been established in more recent years, do so as best educated as you can. Sometimes investing in something you enjoy is the best way to invest your money for the purpose of wealth building because you are more likely to be more invested personally than just financially.

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