If you use social media, you probably hear it at least once or twice a week in that someone online saying they learned how to successfully build their wealth and now live a stress-free life. It can be upsetting to see over and over. At first, you were all ears because who wouldn’t be? Who wants to spend the next 20 years in a gray cubicle? Unfortunately, you quickly realized that the only thing these self-proclaimed financial gurus want is for you to dig up for their bootcamp course, which you can pay for in four easy payments.
You didn’t really learn anything at all, which brings you full circle. Even if it seems like all hope is lost, it’s not. There are many ways to build wealth without having to give up all the things you like to do. You just need to know to do it the right way.
Why Start Now?
Unless you know you’re going to earn a lot of money in the future, you need to get started now. The thing is, investing all your money at one time might not be the right thing for you. While sitting and watching a lump sum sounds great in theory, dollar cost averaging might be a better choice. With DCA, you don’t have to wait for the right time to invest. Even those with no prior investment experience can go this route and grow their IRA, real estate accounts, or retirement account.
Minimize Your Spending
Being financially secure is a delicate balance between saving more and spending less, and while it sounds easy to do, many struggle with it. If you’re having trouble getting started, try creating an itemized list of your necessary expenses. These are ones that you can’t reduce, such as you mortgage, rent, or car payment. Then, create a list of expenses you know you can reduce, such as eating out, buying clothes, and last-minute purchases. Take note of how much you’re spending each month and decide how much you can comfortably cut back. Your goal should be saving at least 10 to 20 percent of your take home pay while still enjoying intermittent splurges.
Invest in Yourself
Saving money isn’t something we’re inherently born knowing. You need to learn which methods work best for you. There are plenty of free resources online you can use to learn more about investment types, savings accounts, and even tips to earn more while working less. You can even sign up for online or in-person courses at your local community college that teach investing basics.
Be Consistent
If you’ve been cutting corners and start to feel like it’s not working, it’s easy to throw in the towel and overspend. You might even convince yourself that you deserve it, especially with all the sacrifices you’ve already made. This is where you need to stay strong and stay true to yourself. Analyze your situation and see if you’ve been too stringent with your saving efforts.
Choose a Suitable Investment
Building wealth isn’t as unheard of as it used to be. In fact, you’d be amazed at how many people have succeeded in doing so. Most of them accumulated their wealth through investing. There are a lot of different investments you can choose from, and each one has its own unique way of building wealth. Here’s a quick list of the investments that you should start with:
- The stock markets
- High-yield savings account
- Mutual funds
- Certificates of deposit
- Real estate
The last option may come as a little surprising. It turns out real estate is one of the most beginner friendly investments you can partake in. In fact, many professional investors have said that real estate is safer than the stock market. That doesn’t mean real estate is completely risk free; it isn’t, but compared to most investments, the risk is very low.
Furthermore, there are also various types of real estate investing. You can choose to either purchase a building outright, rent out one of your unused spaces, or purchase real estate shares. Real estate shares function similarly to stock shares. You purchase them and make money off them over time, except you don’t have to worry about volatility or a stock market crash.
