Many people tend to wait until life’s
graph begins to take a downward curve – that’s when they stop and begin asking
themselves why they did not start building
wealth at their young age. You are never
too young to begin setting a course for success or wealth. Whether you just
landed your dream job or you launched your first startup, the time is now to
start making your way to realizing your vision. There is no foolproof quick
pass to getting rich. Instead of woolgathering about that six-figure income,
you want to walk a step after another. The earlier you start building wealth,
the easier you are able to succeed. Here are steps you can put into action now
that will lay the groundwork in for an overflowing bank account or series of
real estate properties in your 30s.
·
Build
a plan of action – a budget
Just like you develop a budget for your
spending, you also want to have a plan for becoming wealthy. You need to get a budget
that you will stick with for the long term. A budget offers you a plan that
helps you to live below your means while being able to spend mindfully – this
is very important if you are going to accrue wealth.
When you stick with your budget, it ensures
that you pay down and eliminate your bad debt, particularly those high-interest
credit cards. Also, your budget needs to allocate cash for your monthly
expenses while also allowing you to build a cushion or emergency fund that can
cover unexpected expenses when they occur. Often, when you don’t have an emergency
fund, you find that you cannot save for that real estate investment or for that
big saving in your bank account. And you know, you cannot build wealth without
money – you need to build that reserve for investing.
·
Increasing
your earning potential
Becoming wealth requires that you focus
on career decisions that allow you to stream in more money. You need to look
for ways you can increase your earnings – bringing in more income is paramount
to getting rich. You should ask yourself whether you need to seek a pay rise or
you need to get better career opportunities that may more.
You may also want to ask yourself if you
will be able to increase your income with a credential or a degree in your
field. There are many ways you can maximize your earning potential – including
seeking side jobs that help you meet immediate expenses so that you avoid being
in debt or living paycheck-to-paycheck. Maximizing your earning potential allows
you to save more. Also, ensure you work hard and give your best shot to
whatever business or job you are doing.
·
Build
multiple income Streams
It’s difficult to become wealthy on just
one income. If you look at the wealthiest guys, they averagely have seven or so
income streams. If you are serious about becoming rich, you need to build
several income streams. It may be a side hustle, a part-time job, a business,
offering a service, or even selling something.
Probably, you may want to start a
home-based business in an areathat you are most interested in. It could also be
an idea for a product that you create. It may also be something you are
passionate about or obsessed with that you could monetize, for example, selling
items on Amazon
or Etsy
or some other online store. You need to think creatively and out-of-the-box so
that you can find ways you can multiply your income streams.
You will realize that when you have
multiple streams of income, you have cash that you can use to begin building
wealth.
·
Build passive income
Having
residual passive income means that you get assets that stream in income monthly
without you putting a lot of effort or input. It could also mean some work that
you did once, and it has been earning you money without involving yourself.
Residual passive income can automatically generate foryou some wealth over
time. Some of the examples of passive income include selling ad spaces on a
blog you built, collecting royalties from pieces of artwork or books you wrote,
or selling digital products such as online courses and eBooksor videos and
online workshops.
Another way
you could earn passive income is by investing in dividend-paying stocks. You
will be getting your share of earnings after say, annually. Other options are
such as renting the extra room you have in your homeor creating an online
store. You may also sign up for cash-back shopping where you are able to get
money back after you shop your essentials.
For example,
if you spend $10,000 annually on shopping, and you have cash-backs of about 3
percent on every purchase you do, it could mean that you cash in about $300.
There are cash backupsthat offer bonuses for purchasing things that you already
buy. These are things you would still purchase even if you didn’t get a bonus.
So utilizing the bonus allows you to stream in some cash, which otherwise you
won’t be able if you did not have the cash-back bonus.
·
Cut
down on living expenses
Frugal living can offer you an
opportunity to start building wealth. Most wealthy individuals don’t drive
expensive cars; they don’t live in mansions. These people tend to keep their
living expenses low in order to use the surplus income to pursue more
investments, thus ensuring that they keep on building wealth.
What you need to realize is that the
more money you reinvest, the quicker you canaccumulate wealth. You may want to ruthlessly
trim your expenses on items or things that do not serve you. Seek ways in which
you could reduce your bills – credit card rates, energy bills, and
subscriptions on home delivery kits, Netflix,
and others.
You could even get rid of your car and
consider using carpool options and public transport so that you can get more
cash. You can invest in wealth-building opportunities.
· Own an enterprise
Individuals
who want to get rich by the time they are in their 30s need to seek wealth-buildingopportunities
that are able to pay off quickly rather than seeking the traditional long term
investments. An excellent way to achieve this is to get to the path of
entrepreneurship. Walking through the entrepreneurial game, where you set up
your own business, allows you to rack up wealth quickly.
When you own a
business, you get unlimited potential to continue earning, but remember,
businesses have some level of risk. Again, owning a business allows you to
enjoy taxi benefits that you cannot when you are an employee. When owning a business,
look at the areas you are passionate about, areas you have more interest in.
This way, you will be able to build motivation and work hard to see the
business succeed.
·
Start
planning for long term
You may want to start investing in a
retirement scheme in your 20s. If your employer has enrolled in a matching
program like the 401k
plan, it is crucial that you don’t miss on the employer’s generosity –
contribute to that plan. If you don’t have that option, you can go the Roth
IRA route.
It makes sense when you start saving for
your retirements early in advance. It allows you to take advantage of the
benefits of compound interest. Also, consider setting aside some cash for an emergency
fund so that it helps protect you when things are thick, it will help prevent
you from getting into massive debt. Saving for the long-term allows you to
build a nest egg that can sail you beyond your 30s.
·
Consider
taking risks
One of the things that hinder people
from building and growing wealth is not willing to take risks. If you want to
become rich, you have to step outside of your comfort zone. You don’t want to
remain in the space where you feel comfortable. You need to recognize that the
avenue or path to success has many uncertainties, so you have to take risks.
The traditional paths, such as having a fixed check or a steady job, maybe
safer, but wealth, in most cases, is realized by taking calculated risks.
You should not let fear drag you behind or
hold you back. Pursue your dreams – stop being a daydreamer where you have
ideas for something that can make you money, and you allow it to remain
untapped. You need to embrace different possibilities – and they are there. It’s
likely that you have always had an idea of doing something that could earn you
money- but you have never taken the first step to pursue that dream. For
example, you have never saved to raise money to begin that business you have
always wanted to set up.
·
Have your financial plan
within an autopilot
One of the
easiest ways you can build and grow wealth is to ensure that you are not
constantly thinking about your money. Try to keep things simple; get the
finances automated. Putting your finances on autopilot means automating actions
on your money or income.
You can have
the paycheck automated such that once it comes in, a portion of it is directed
automatically to your savings account, emergency fund account, and retirement
savings accounts. This way, you don’t have to start thinking of what to do when
the paycheck comes in. This is because, in most situations, you will make
mistakes in decision-making when you start thinking about what to do with the
money. You may even find yourself doing impulse buying because you cannot identify
where the money should go.
Automating
your paycheck ensures that you do away with the emotional attachment you have
when the cash comes in. It allows you to only think of the money that is left
after all the other is directed to various accounts that help secure your
financial future.
·
Seek
good mentors
If you are going to succeed and build
wealth, you need to navigate risks and challenges. This is an uphill battle for
individuals in their 20s – so they need a mentor to help them out. A mentor is
invaluable in that he or she gives you advice that you can listen to and
believe in it. Remember that not everyone can tell you something and you
believe it. Even financial planners may not take the place of a mentor because
you sometimes doubt their advice.
A good, experienced mentor is your
soundboard when you find yourself in dilemmas or when you suffer setbacks. More
importantly, a mentor puts himself in your shoes so that he can see things how
you see them and offer you guidance on which way to take – a mentor can see
beyond what you see.
·
Nurture
a money mindset
You may not realize it, but your
attitudes and beliefs regarding money caninfluence your ability to gain and
maintain wealth. Some individuals don’t believe in building wealth. They don’t
believe in making so much money. You should re-evaluate your philosophy about
money. You need to check your belief about putting money in a bank account and
paying your debts. Do you believe that when you save money and eliminate debts,
you can be better off financially, or you can build wealth?
Look at what kind of lifestyle you are
accustomed to. Cultivating a money mindset in your 20s allow you to begin
building wealth so that by the time you are 30, you haveaccumulated wealth. You
need not only desire to have financial freedom but also be willing to put
effort into attaining financial success. You also need to believe that you can
get rich, and you deserve it.
·
Make
it a habit to invest in yourself
No matter what you do or what kind of
efforts you make, you should realize that you’re your own greatest resource.
All you are doing, you’re doing it for yourself. You, therefore, need to invest
in yourself in order to maximize your options and identify your best
opportunities. Investing in yourself means taking a more in-depth look at your
interests, skills, and talents and finding the best ways you can optimize your
potential.
You may want to spend money to gain
education or training to sharpen your skills. You may also want to broaden your
mind and consider connecting with like-minded individuals or branch out from
your typical career path. Also, you may want to seek experience in your line of
work so that you get the upper hand when seeking valuable career opportunities.
This way, you can build a sound financial foundation.
The
Wrap Up
These are some of the secret weapons you
can use when you want to build and grow wealth. You need to realize that wealth
is better built when you are most productive and creative. It is built when you
are young rather than waiting until you get old. Make sure that you change your
money spending habits, you consider saving, you live within or below your
means, and you develop the right attitudes and positively believe about saving
and building wealth. Being rich should not be an option, but something you
deserve.
