5 Tried and True Strategies for Building Wealth

Daniel Penzing
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Start Your Own Business

Many people that want to be rich think that the only way for them to get there is through something called “working for yourself.”

But that doesn’t necessarily mean working for yourself by starting your own business. It can also mean working in the type of position that is usually associated with people who are already rich.

For example, being a doctor, lawyer, or tech entrepreneur.

These types of positions (with high salaries) are not hard to come by.

But there’s another strategy that, if you’re good at it, can be even better than those listed above.

If you’re a businessperson at heart, you can simply go out and sell!

Simple, obvious advice, right?

But if you don’t think of yourself as a salesperson, it might be hard for you to visualize how this might land you in the 1%s club.

The thing to remember is that sales is really just another form of business ownership.

These business owners pay you to get their products into the hands of customers, and in return you put some of that money back in your own pocket and continue to grow your wealth.

Isn’t that exactly what a business owner does?

Invest in Real Estate

If you have money to spare, there are plenty of great ways to build your wealth. Believe it or not, there are tricks to this process that can help even the most apprehensive investors amass a decent amount of money. Here are a few strategies to use to get you started:

{1}. Invest in real estate. If you have the capital to spare, try investing in real estate for the long term. The experts say that real estate prices have increased just about every year for the past century, and there’s no reason to believe that pattern will suddenly end. Why not get on the real estate boom early? Just make sure that you explore all of your options before getting into any real estate deals.
{2}. Maximize your retirement plan. The only people who really make big gains with any sort of normal retirement account are people who invest right from the beginning of their careers. And saving even a few thousand dollars can go a long way towards your retirement future.
{3}. Make sure to contribute a few hundred dollars every month to a dedicated savings account. Although this may not seem like much, it can go a long way toward building wealth over time for your family.

Pay Yourself First

Paying yourself first means that you set aside a portion of your income (before you pay your credit cards and other bills) into a savings or investment account.

Begin with a small amount that you can afford today, then increase the amount as your budget allows. This will help you maintain your savings over the long term.

Organize your funds into different bank accounts. For instance, you have an account for your household bills, an account for your business expenses, and an account for an unexpected expense, like a new car or your kid’s college tuition.

Pay yourself from each of these accounts before you pay anyone else. In other words, set aside part of each paycheck before you begin using the money for your needs.

Use your savings for needs and wants. If you have unexpected expenses for things like new tires, school clothes, or a home appliance, you’ll be able to use your savings account to pay for them.

Take Calculated Risks

It can be frightening to invest money in a new enterprise when you can’t predict the outcome, but it’s important as an investor to trust your instincts. If you’re drawn to a specific prospect, get in, even if you also recognize the potential downside. If you take risks, you will find yourself with good returns on your investment, but you need to know how to evaluate an opportunity and balance your risk and reward potential.

View Wealth as a Long-Term Goal

Many people believe that it is impossible to build wealth if you’re younger. The myth is that it takes time to save up a solid nest egg. However, this is not true!

There are many ways that saving money can be a short term goal if you focus on finding ways to save money. This is the number one strategy that has helped me accumulate wealth.

There are many ways we can save money in our lives and still have fun. For example, we can purchase second hand items from thrift stores, instead of brand new ones. We can choose to live in a home that is smaller and save money in the process. We can also find less expensive ways to have fun, such as learning to play musical instruments and inviting friends over for jam sessions.

We shouldn’t deprive ourselves, but we should always be willing to find new ways to spend less money. This is the first important strategy for building wealth.