Monday, January 4, 2010

6 Proven Strategies to Build Your Wealth in 2010

6 Proven Strategies to Build Your Wealth in 2010

The issue of wealth building or wealth creation is not limited to an individual or group of people. It is indeed a general phenomenon. To effectively build your wealth, the words of Napoleon Hill in his book “Think and Grow Rich” that “Wishing will not bring riches but desiring riches with a state of mind that becomes and obsession, then planning ways and means to require riches, and backing those plans with persistence which does not recognise failure will bring riches”.

Wealth building is as simple as A, B, C, D and 1, 2, 3 and yet one of the most difficult things to learn. Infact, someone once said that there was no such word as “simple”. You consider something simple because you know it. Another person may consider the same thing or situation as very difficult. It all depends on the individual involved.

Have you ever wondered why the rich get richer and the poor gets poorer in the midst of plenty under the same atmosphere and environment. It goes beyond luck or academic intelligence. The following proven strategies by Matthew Keega enumerates some strategies you can put to use today and build your wealth tomorrow:

1. Pay yourself first.

2. Save now.

3. Get rid of debt.

4. Plan for your own home.

5. Build an emergency fund.

6. Protect your assets.

Pay Yourself First – If you do not set aside money before you start paying your bills, chances are you will never save any money after you pay these same bills. If your employer has a retirement plan, enroll in it and set up a reasonable percentage to invest. The money would have been deducted before your salary is paid to you, therefore the “loss” of discretionary income will be less noticeable to you.

Save Now – The earlier you start to save in our life, the more you will have later in life. Of course, if you are not able to save much until after your children are grown, you can step your savings until you retire and still have a decent retirement savings account.

Get Rid of Debt – Even before you build up your savings, it is best to get rid of our debt first before starting a wealth building campaign. It would be better for you to pay down your debt first and then implement an investment strategy.

Plan for Your Own Home – One of the best thing you can do to yourself is to plan to own your own home before you finally retire from active jobs. One of the challenges faced b many people after retirement is the challenge of where to settle with their families.

Build An Emergency Fund – Nothing wrecks the best laid plan more than emergencies, particularly one that costs you money. Set aside up to 6 months of your income to live on in case catastrophe hits. Save for the rainy day even though it is always rainy. Without an emergency fund you will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Try recovering quickly from this sort of hit to your wealth without an effective back up plan.

Protect Your Assets – You can have a healthy portfolio and see it disappear quickly if you are not properly insured. Make sure that your health/dental, homeowner life, and disability insurance coverage is adequate to meet your needs.

The best time to build wealth is NOW. Do not wait for a change of environment before you act; get a change environment by action. Act NOW.

No comments:

Post a Comment

Thank you for your interest in this blog. Please leave a comment below. It will definitely motivate us to improve on our standard. It may also touch someone's life.