If you’re lucky enough to have a top job that nets you hundreds of thousands of dollars per year, or you managed to inherit millions from parents or family members, chances are you don’t worry too much about building wealth, just maintaining it.
However, for the rest of us who aren’t quite so lucky, that doesn’t mean that becoming wealthy is impossible. What it does mean is that there isn’t an easy answer and there are things you need to do in order to accumulate any sort of real wealth.
Use this guide to help you save money and build wealth over your lifetime. It is possible – you just have to be smart about how you spend and save your money.
When you get your paycheck, the first thing you likely do is take care of bills and obvious things like your rent or mortgage. While that makes sense and you obviously need to pay your bills for living space, you also need to take some money and put it aside every single time you get paid.
That can seem pretty difficult, but the amount you put aside doesn’t have to be huge. Even taking 5% to 10% of your paycheck and putting it somewhere safe where it can earn money like a 401k or Roth IRA is something you should be doing every single time you get paid.
If you do that, you’ll have quite a sum invested in the next five years without completely limiting your lifestyle.
Cut Unnecessary Costs
One of the most common reasons people don’t end up saving money is because they have so many unnecessary costs in their lives. For example, you might be paying $100 per month for premium cable but you really only watch the basic channels and one or two of the premium channels. Cut out what you don’t need and you’ll save money.
You might also be paying for subscription services or for an expensive cell phone plan. Trim the fat and keep that money in your pocket to build wealth faster.
Related Post: 5 Smart Ways to Budget Your Household Expenses