Any sensible and experienced craftsman knows the first step in building a house is creating a blueprint and laying a strong foundation. The same common sense applies when you’re creating a solid plan for building wealth.
It all begins with 5 simple and effective tips for managing your money and beginning to build wealth.
See the 5 Steps Now
Step #1 - Get your money mindset right
You become what you think. Instead of worrying about money every day, try visualizing the level of wealth you deserve. Then re-affirm that vision to yourself every day. You’re conditioning yourself to think about wealth so much that there’s no room for worries about money.
Step #2 - Set goals and develop plans
Yeah, yeah, yeah … I know you talk about goals all the time. But if what you want out of life isn’t written down and backed up by action plans, then you’re just wasting your breath. You’re never going to realize anything you talk about. Written goals and concrete action plans force you to align your money and other resources to achieve your goals.
Step #3 - Pay yourself first
Before you pay any other bills, set aside at least 10% of your gross earnings from every paycheck. No matter what happens, never waiver from this policy. Does the tax man ask you how much you need for groceries or utilities before he deducts your taxes from your paycheck? Nope. Treat yourself at least as well as the tax man does. Pay yourself first and then figure out what’s left for your other expenses. Remember that 10% is your seed money for building wealth.
Step #4 - Invest wisely
Use that 10% you paid yourself wisely. Leaving it in a savings account seems safe, but the money does nothing there. Inflation wipes out any interest you earn. A much wiser plan is to commit to learning everything you can about assets and investments. Then, you’ll understand how to put your money to work for you instead of letting it work for the bank. A good financial adviser can help you get started.
Step #5 - Balance Risk & Reward
You work hard for your money, so it makes sense to protect it. If an investment sounds too good to be true, it probably is. Remember also that an investment that offers high rewards also carries higher risks. Conversely, a lower risk investment also delivers lower rewards. A balanced portfolio needs both high- and low-risk investments. Each investor has a different tolerance for risks. Our willingness to take risks also changes throughout our lives. An experienced financial professional to help you learn what risk you’re comfortable with and steer you to appropriate investments at different points in your life.
At CleveDoesMore, we help real people create practical pathways to optimize and sustain peak financial health
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Whether you are planning to buy a home, want to learn more about budgeting, or are simply interested in obtaining guidance on investing and other financial matters, the CleveDoesMore team has the tools, resources, insights, and accountability you need to succeed.