Have you ever thought of turning your income into wealth? A high salary can help an individual appear wealthy, however, building real wealth requires commitment Not everyone can accumulate wealth, but most people with a decent income can build wealth if they are diligent at it. What does it take to handle real wealth, following the guidelines below will help you understand wealth management.
Get Out Of Debt: Trying to accumulate wealth whilst in debt is akin to building a castle on sand. Your first priority should be to get out of debt. Imagine trying to fill up a basket with water. The interest you are paying on your debts is a bit like the holes in the basket.
Live within your means: If you spend absolutely everything you earn, you’ll find yourself back to square one time and time again, unable to get ahead. It is incredibly important to understand your income and expenditure. Many commit in their heads to investing each month. When their income hits their bank account, they then pay their bills and fund their lifestyle, with the intention of saving “whatever is left over’. Which usually turns out to be nothing or very little – certainly less than they had anticipated Make a list of all your outgoings and compare this to the income you receive each month. If you’re spending more than you earn, you’ll soon end up in debt. You can get ahead by reducing your expenditure through careful budgeting and cutting out frivolous expenditure. Or you can get ahead by increasing your income through changing jobs or getting that promotion.
Start small, finish big: Your circumstances will dictate how much you can save but aim to save 10% of your net income as a starting point. If for example you take home #20,000 per month, at least #200 per month of that should be going into a regular savings plan of some sort. As time goes on and your fund builds, you’ll find yourself more motivated to save more. The snowball effect of this can turn humble beginnings into a large nest egg over time.
Invest for the long-term: There are several long term investment that can turn your income into real wealth. Decide which best fits or suits you before putting your money there. Long term investments like real estate, stocks, mlm and many more.