Everybody wants the security that comes from having their finances in order and building wealth. Even if you have nothing now, you can start applying wealth-building techniques to achieve your long-term financial goals. Using the following strategies, you can live debt-free and learn how to acquire wealth.
One way to increase your wealth is to earn more to begin with. You can try to negotiate a better salary at your current job or transfer to a company that pays better.
You can also use these ways to add more sources of income:
If you are crafty or artistic, or are just able to build stuff on your own, you can create a website to sell your products. It’s actually easier than you think. There are services that will let you set up a selling website with a shopping cart already built in, with little hassle. Here are some of the best shopping cart software services:
If you’re a skilled writer, graphic designer, proofreader or website developer, start a freelance business to earn extra money on a freelance basis. You can advertise your services on a website and have inexpensive business cards printed to hand out as needed.
You can also start your own blog and write about whatever interests you while also making money on the side. If you sign up for an affiliate program, you can earn a commission on any products or services that you recommend on your blog. Here are some of the top affiliate programs:
As a freelancer, you set your own rates and deadlines, so you can have as much flexibility as you need to make the money you want.
Depending on your work schedule, get a second job on the weekends or throughout the week. You’ll accumulate wealth much faster by spending time earning money instead of relaxing at home. Consider these options:
Do you have furniture, antiques or other items you can sell? Host a garage sale or sell items online to make additional money. In addition to accumulating wealth, you’ll have a more beautiful home that’s free of clutter.
There are many ways to earn money outside of traditional employment opportunities. You could babysit, walk dogs or housesit for nearby families who would be happy to pay you to help them out. Ask your neighbors if you can plow snow off their driveways or mow their lawns. Most people aren’t focused on actually accumulating wealth and would rather pay you to do something than have to deal with it themselves. You can use this to your advantage.
You can also create passive streams of income, where you put in the work initially and receive compensation over time as people use or buy your product. Some examples of this would include:
The quickest way to have money is to not spend the money you earn. The longer you can keep this money in your bank account, the more money you’ll have overall.
Consider how many stories you’ve heard about celebrities who once made millions of dollars before filing for bankruptcy. Fans act surprised by how they squandered their money. No matter the amount of money you have, you’ll stay poor if you consistently spend more money than you keep.
To keep more of your money, you should lower your expenses for as long as possible. Ask yourself the following questions to determine how you can accomplish this:
You can lower your expenses by negotiating better rates with your regular service providers. Call your internet company and cellphone provider to see if they can offer you a better price. If they hesitate, be transparent and let them know that you’re shopping around to lower your rate, but you’d like to stick with their company. You can also get the most out of your taxes by using one of the best online tax services to help you optimize your tax return.
Some of your bills you can cut altogether. Think about things you pay for but don’t really need or use. For example, most families don’t need a home phone and a cellphone anymore. Consider if you need both, and drop the home phone bill if you can.
There are plenty of less expensive alternatives to services you routinely use. Cable is one bill many families opt to go without to save money each month. If you still want to watch your favorite shows, consider these alternatives:
You can also spend less on your variable expenses. Implement a budget for eating out, entertainment and grocery shopping. Get creative and find ways to stick to the budget so you save money every month instead of giving in to impulse buys. When setting up a budget, make sure you are consistently checking your credit card and banking statements to make sure you are safeguarding against identity theft. You can also sign up for an identity theft protection service like Lifelock. Check out our comparison of Lifelock vs. Experian to review the popular services side by side.
When you have debt, you waste money financing it through interest and limit your recurring cash flow through payments. It makes the most sense to pay off debt quickly and to commit to avoiding debt in the future.
One way to pay off debt is to make a list of all your debts, including student loans, credit cards and medical debt. Order them from smallest to largest.
Pay the minimums each month on all debts. Put any extra money toward the smallest one. Once you pay off the smallest one, add that monthly payment to the next one. Eventually, your debt pay-off strategy will gain momentum and you’ll pay off all your debts. If you can pay off your debts, take on your credit score next. Raising your credit score can mean savings when it comes to interest rates. You can repair your credit yourself or you can reach out to one of the few trusted credit repair companies to help you with the fixes.
If your dishwasher breaks, do not go out and buy a new one on a payment plan. Instead, put off buying the dishwasher until you save up to pay for it in cash.
It’s important to change the way we think about money if we’re going to learn how to accumulate wealth. Saving for something means you won’t have an ongoing payment related to a purchase you already made. If it’s not worth saving for, you’ll end up not buying it and saving the money instead.
Once you free up money by earning more, spending less and avoiding debt, you should start investing your money to maximize how much you have. There are different strategies you can use to do this. A well-balanced financial portfolio consists of a combination of strategies.
Most regular savings accounts at banks have nominal interest rates. When you have more money to save, you’ll have other options available to you, such as CDs and money market accounts. Ask your current banking institutions which accounts you can open that have the highest interest rates.
You should be contributing regularly to a tax-deferred retirement account, such as your 401(k), which might be eligible for an employer match, or an IRA. Aim to contribute the maximum each year to reduce your overall tax liability and prepare for the future. Health savings accounts and 529 education plans are additional ways to save and reduce your tax liability.
If you’re ready to invest in stocks or other formal investments, it’s time to hire an investment broker with the expertise to increase how much return you get on your investment. Ask friends and family members who they’d recommend, and conduct your own research. You want to make sure your money is safe and has the best chance of growing, so a personal recommendation isn’t enough on its own.
Find out how the accounts of other clients performed. Using these steps can help you feel financially secure, make healthier financial decisions and grow your wealth.
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