Granted, it’s much more fun to spend money on a vacation in Hawaii than it is to invest money, saving for retirement and grow your wealth. But the hard truth is that in order to build wealth and continue to have expensive vacations, you do need to save, make money, invest, and grow your money.
Although living below your means, cut your expenses, and avoid eating out are great way to start, doing these things alone won’t grow your wealth.
To become wealthy, you need to learn how to grow your wealth. In other words, you need to follow the habits of the rich. You don’t necessarily need a wealth advisor or the top wealth management firms, but you do need to follow these 11 easy tips.
If you want to know how to get rich, read these books:
- Rich Habits
- Rich Habits – The Daily Success Habits of Wealthy Individuals
- Rich Habits Poor Habits: Discover why the rich keep getting richer and how you can join their ranks
1. Practice good wealth management.
Practicing good money management is a great way to build wealth. If you’re always in a debt, you don’t a retirement savings account, you’re always procrastinating to pay your bills, and you’re always swiping your credit cards, and you always carry a credit card balance, you might have a money management problem. And, it will be hard for you grow your wealth.
To fix this, use a money wealth management app like Personal Capital to help you manage your money better.
As I said earlier, in this age of technology, you don’t necessarily need a wealth advisor. With Personal Capital, you can see where you spend your money and how much money you have available.
Personal Capital is like Mint.com. It’s a great tool to track all of your finances in one place. It allows you to connect all of your financial accounts including your mortgage account, your bank accounts, your investment accounts, your credit card accounts, your retirement accounts, etc. The good thing is, it’s totally FREE.
Click here to sign up for Personal Capital
2. Pay off your debt.
Pay off debt is one action that can help you to grow wealth fast.
The more debt you have, the less likely you will become rich. If you have a lot of credit cards debt, pay off the one with the highest interests first.
The first way to dig yourself out of debt is to know how much debt you have. You cannot make a plan to pay off debt if you don’t know how much debt you will pay.
So you need to look at your credit report. Most importantly, you need to look at your credit score. Keeping a good credit score is crucial when it comes to applying for personal loan to pay off debt. To know whether you have a good score, check it for free at Moneytips.com.
Click here to check your credit score with Credit Sesame. It’s completely FREE.
3. Invest in Stocks to grow your wealth.
When it comes to building wealth, time and compound interests are your best friends. See, the more time you spend without investing, the less likely you will grow your wealth. While there are many ways to grow wealth besides investing, investing in stocks has been known to build wealth. If you are in your early 20’s or late 30’s, you should start now, even if you only can start with a small amount of money. Investing early is a sign of a rich person.
Wealth management firms such as Ally Invest, make it easier to find and make smart investments.
Sign up for Ally Invest here and get started investing to grow your wealth.
4. Use other people’s money to build wealth fast.
One way to grow your wealth fast is to use other people’s money through leveraging. There are several ways to leverage other people’s money. But the one thing that comes to mind is through a loan for an investment property.
When you’re investing in real estate property, even if you have the money to buy a property in full, take out a mortgage to pay for the property.
For example, when you buy a property for $200,000, you only have to come up with 20% as down payment. So you’re using 80% of other people’s money to buy the property.
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5. Rental Real Estate.
Another way to build wealth fast is through rents from a real estate investment. Just as you’re able to leverage other people’s money to buy a house by only putting 20% down, when you have a rental real estate you get to use the rents received from the tenants to pay off your loans and you get to keep any profits. Real estate allows you to generate multiple passive income streams.
Related: 5 Passive Income Streams That Will Make You Rich
6. Increase your income to build wealth.
If you want to build wealth, you need to know how to increase your income. As the saying goes, “you have to have money to make money.”
When you increase your income, not only do you have money to cover monthly expenses, you have money to save and money to invest. Whether you ask for a raise at work, change job, or open your own business, there are several ways to generate more income and there are resources available.
For example, you could take a part time job, or complete surveys to make extra money. One of the easiest ways to make extra money is through Swagbucks.
You can also launch a blog as a side hustle to make money.
7. Take advantage of your employer’s 401k.
I always think of a 401k plan as free money. When your employer offers a 401k plan, take full advantage of any matching contribution to boost your retirement savings. Otherwise, you’re just turning down free money.
If an employer 401k is available to you, why not take advantage of it. Many employers match your contribution to a 401k, so you get pretax investing, tax-deferred compounding, and an extra bonus from your employer.
You simply cannot beat it, because your contribution comes right off the top of your paycheck before taxes, all of your earnings compound tax-deferred, and many employers match your contribution, and your contribution is automatically deducted from your paycheck; you never see it and you never have to make the decision of not to invest.
Related: 5 Reasons Why You Will Retire Broke
8. Create Passive Income Streams.
Not only should you have multiple income streams, but also you should focus on building passive income. Passive income is, in simple terms, income you earn without actively trading your time for it.
Whereas active income is income you earn while you are actively involved. Earning income from working at a 9-to-5 job is active income; earning income from collecting rent as a landlord is passive income.
Focusing on passive income is important because it allows you some free time to spend on other things that you actually enjoy while at the same time earning money. This is quite different from active income where you trade your time for money. You simply cannot build wealth if you rely on your work to generate income.
Focusing on building passive income is a better alternative than active income. There is only so much time in a day, so it’s hard to build wealth quickly when you’re trading your time for money. Now, I’m not suggesting that you don’t have to work to create passive income. To create passive income, you need to put a lot of work upfront and reap the benefits later.
Some examples of passive income include:
a) earnings from internet ads or from affiliate marketing in a blog or website you own;
b) rent from rental properties you own;
c) dividends from stocks, mutual funds, etc.;
e) profits from businesses that you own
9. Own your own business.
If you spend your whole life working for someone else, the odds of building wealth is slim to none. Again, there are exceptions. If you are a successful attorney in a big law firm, or a successful CEO of a major corporation, etc, you can become rich.
But if you are a 9 to 5, minimum-wage worker, with no other sources of income, it will be very hard for you to grow your wealth.
But by opening your own business, you get to keep most, if not all, of the profits
10. Automate your savings.
Saving money regularly is one of the best saving tips to boost your savings and grow your wealth. Don’t just open an account, leave it there, and not contribute to it. Set up your high interest savings account to go via automated payments set up with your bank.
That way, you can set and forget it, knowing that you are boosting your savings without you having to transfer them every time you get paid.
11. Work hard.
The rich or the wealthy did not become wealthy or rich by accident, unless of course they won the lottery or inherited a large sum. In order to grow your wealth, you need to work hard, be persistent, have discipline and courage. Successful and rich people know early on that building wealth is not easy. If you want to build wealth and be successful you have to have a good work ethic.
These are some of the best ways to grow your wealth. Do you agree?
If you want to know how to get rich, read these books:
- Rich Habits
- Rich Habits – The Daily Success Habits of Wealthy Individuals
- Rich Habits Poor Habits: Discover why the rich keep getting richer and how you can join their ranks
While working on growing wealth, here’s what you can do in the meantime:
First, you can try to make some extra money.
This extra money can help pay small bills, like phone bill, cable bill or even pay credit card debts. You can earn extra cash by completing online surveys.
A few good ones to try are: E-Poll Surveys, iSay Survey Panel, MySurvey US, OneOpinion, Vindale SOI, Panel PayDay (earn $25-$75 per survey), SurveyClub,SurveyJunkie, Panda Research, OnlineSurvey, Inbox Pays, Opinion City, PointClub,KeepMoreCash, VIP Voice.
Also, sign up for InboxDollars, which pays you cash for simply surfing the web, watching videos and playing games.
Second, you can start a blog.
If you’re interested in earning passive income, then you need to create your own blog. It’s one of the best ways to make money while you sleep.
Starting a website with Bluehost takes less than 15 minutes and hardly costs anything. And there are several ways to monetize your website.
Read our step-by-step guide on how to start a successful blog in 15 minutes. It’s one of the best passive income streams you can have.
Third, If you’re thinking of buying a house, estimate how much you may be able to borrow. Get pre-qualified.
Fourth, maintain a good credit score.
A good credit score of 730 means that not only will you able to get qualified for mortgage loan, it also means you’ll get qualified for a better interest rate. And being able to get a better interest rate means that you will have lower monthly mortgage payments. This, in turn, means that you’ll save thousands of dollars on interests.
Click here to check your credit score with Credit Sesame. It’s completely FREE.
Work with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
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