Building wealth is a lot like building a house.
It takes a while to accomplish, but in the end, you'll know it was time well spent.
Also, like a house, slow wealth needs a sturdy foundation on which to stand.
Here are some of the ways you can build a strong financial foundation for your future.
Pay Off Your Debts A bit of healthy debt is a good thing.
Healthy debt includes high-yield investments like a house, a business, or a college education.
But it's possible to have too much of a good thing.
If your debt is unhealthy, such as high-interest credit card debt and personal loans used to purchase depreciating items (think vacations and cars), you're building on a very shaky foundation indeed.
Before it cracks, you need to shore it up.
Pay off your high-interest credit cards first, and then tackle them in order until they've got a balance of zero.
It's up to you whether you want to close the accounts after you've paid them off; some people save their cards for emergencies, or for the boost that a lot of available credit gives their credit score.
Others, knowing they can't trust themselves to use the cards properly, prefer to close the accounts and breathe a debt-free sigh of relief.
Spend Less Money This seems like a no-brainer, but it's more difficult than you'd think.
Many of us don't realize how much of our money goes toward consumables like fast food and nights out on the town.
Reduce this type of spending, and track your money with a spreadsheet or financial software.
Even a session with a financial planner could be a good investment for your financial future.
Make More Money Some people believe that increasing their income will pave the way for a wealthy future.
They're right, but only if your standard of living doesn't rise in proportion to your income.
There are millions of "well-to-do" families barely making ends meet because of uncontrolled debt and spending.
Why? Because when they get a higher level of income, they start buying more expensive things rather than investing that money in stocks or retirement funds.
Which would you rather have when you're 60 years old: enough money to see you comfortably through retirement, or the memory of a zillion trips to fast food restaurants? If your income goes up, don't waste it on rapidly depreciating things.
Put it toward your future.
Believe me, you'll thank yourself later.
It takes a while to accomplish, but in the end, you'll know it was time well spent.
Also, like a house, slow wealth needs a sturdy foundation on which to stand.
Here are some of the ways you can build a strong financial foundation for your future.
Pay Off Your Debts A bit of healthy debt is a good thing.
Healthy debt includes high-yield investments like a house, a business, or a college education.
But it's possible to have too much of a good thing.
If your debt is unhealthy, such as high-interest credit card debt and personal loans used to purchase depreciating items (think vacations and cars), you're building on a very shaky foundation indeed.
Before it cracks, you need to shore it up.
Pay off your high-interest credit cards first, and then tackle them in order until they've got a balance of zero.
It's up to you whether you want to close the accounts after you've paid them off; some people save their cards for emergencies, or for the boost that a lot of available credit gives their credit score.
Others, knowing they can't trust themselves to use the cards properly, prefer to close the accounts and breathe a debt-free sigh of relief.
Spend Less Money This seems like a no-brainer, but it's more difficult than you'd think.
Many of us don't realize how much of our money goes toward consumables like fast food and nights out on the town.
Reduce this type of spending, and track your money with a spreadsheet or financial software.
Even a session with a financial planner could be a good investment for your financial future.
Make More Money Some people believe that increasing their income will pave the way for a wealthy future.
They're right, but only if your standard of living doesn't rise in proportion to your income.
There are millions of "well-to-do" families barely making ends meet because of uncontrolled debt and spending.
Why? Because when they get a higher level of income, they start buying more expensive things rather than investing that money in stocks or retirement funds.
Which would you rather have when you're 60 years old: enough money to see you comfortably through retirement, or the memory of a zillion trips to fast food restaurants? If your income goes up, don't waste it on rapidly depreciating things.
Put it toward your future.
Believe me, you'll thank yourself later.
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