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5 Super Wealth-Building Tips Pave the Way to Financial Freedom

Here are five super wealth-building tips for the success-minded individual...









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There are so many things involved with building

 wealth that it would take much more than one

 article to explain it all. So, we've put together a

 simple five-step guide to help you get a great start

 in building wealth for a lifetime.


Step 1: Set Specific Goals


Goal setting is a task that can be easily put off -

 especially when you are extremely busy in day-to-

day activities. However, goal setting is the first and

 one of the most important steps you'll take to

 achieve wealth. Set both short-term and long-term

 goals. Short-term goals may be daily, weekly and

 monthly goals. These should reveal where you

 would like to be financially by a certain time in the

 near future. 


Long-term goals include the amount of wealth you

 would like to accumulate within a year, two years,

 or maybe even five or ten years. Both types of

 goals are necessary to build wealth. Without goals,

 you are wondering blindly with no care or thought

 of what's ahead. This pattern of life is sure to leave

 you empty-handed!


Step 2: Create a Business Plan


Every successful business from the past and today

 started with a plan. Your business plan should

 illustrate where you are now, where you plan to be

 in the future, and how you're going to get there.

 Write these few notes down on paper. Then, fill in

 the blanks to create a rough business plan. It's

 easier than you think. 


*Your current income

*Business profits and expenses (if you already own a business)


*Business budget (or personal budget if working for someone else)


*Capital needed upfront to promote and operate business


*Plans to acquire the capital needed (source of capital)


*Spending plan (promotions, supplies, inventory, online expenses, etc.)


*Expectations (What results do you expect from your initial efforts?)


Creating a business plan is a necessary step to build

 wealth through your own business. Even if you

 don't own a business, you should write down a

 similar plan to reach your personal wealth goals.


Step 3: Avoid Harmful Debt


Debt is the one of the key reasons many people

 never accumulate wealth. But remember, there are

 two types of debt: harmful debt and necessary

 debt. Harmful debt is the debt you create for things

 you do not need such as excessive shopping,

 luxury items, expensive cars that you can't afford,

 etc. Necessary debt is a debt most people must

 have to live, such as a mortgage, car loan

 (affordable), medical, college, etc. These debts are

 a part of life for most families and will be for

 many, many years. However, even these types of

 debts should be kept well within your income

 limitations. If you can only afford a $250/month

 car loan, then shop around until you find one at

 this price. Don't give in to the temptations and

 pressures to buy the fancier, more expensive car

 with a $450/month payment. It's not worth the

 risk!


You may ask, "I thought these steps were for building wealth?" 


As it happens, debt is the opposite of wealth.  The

 more debt you have, the less wealth you will

 accumulate. You can't save money or invest money

 that belongs to someone else. If you earn $3,000 in

 income this month, but owe $2,000 in loans

 (before everyday living expenses), you can't

 possibly have extra money to save. You must

 either earn more or sell some items to pay off your

 debt. You should avoid this "debt trap" if you

 intend on building wealth for the future.


Another type of debt is one for your business. You

 may take out a small business loan to get things

 started or to promote your business. If you are

 uncertain about whether the business will bring

 profits, try to avoid business debt until you have

 tested it a while.


Step 4: Develop a Personal Plan


Above, you developed a business plan. Now it's

 time to create a personal plan. What tasks will you

 do daily to build wealth? Put yourself on a

 schedule and a strict budget. Work toward your

 goals daily by making a list of things to do and

 marking off each item on the list as you complete

 the tasks. In your budgeting, include a set amount

 of money you will put away in savings (savings

 account, IRA, stocks, bonds, etc.) If you plan to

 invest, be sure to diversify your investments.

 Choose only one or two high-risk investments and

 several "safer" investments such as mutual funds

 or bonds. 


Step 5: Stay focused on the Goal, not the Circumstances


No matter what circumstances you find yourself in,

 keep your eyes on the wealth-building goal ahead.

 Even if sales are down in your business, don't stop

 dead in your tracks. Remember, businesses have

 ups and downs. If you remain steadfast toward

 your goal during the slow times, the busy times are

 bound to be much better than ever. Your income

 will grow and you will have the extra money

 needed to reach your wealth-building goals.


In a nutshell, building wealth does not happen over

 night with one get-rich-quick program. It happens

 with consistent labor toward the goals and tasks

 you have created. You can build wealth for your

 future if you do not waver from these basic truths

 that have worked for millions of others!