6 PROVEN WEALTH BUILDING STRATEGIES

Posted By: TimoStevens (Wealth Sage, 2009)

Instance riches come to a few, but most riches are realized after careful planning and effective management of your resources. You can properly prepare for the days ahead by implementing these six proven wealth building strategies today:

1. Pay Yourself First.

If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. Enroll in a pension plan (e.g. EPF, 401(k) or 403(b) plan) and set up a reasonable percentage to invest

2. Save Now.

The earlier you start to save in your life, the more you will have later in life. With regards to your income, you can step up your savings until you retire and still have a decent nest egg.

3. Get Rid of Debt.

It's difficult to find any investment that gives you a return that exceeds your debt-rate. As such, it's best to get rid of your debt first before you start implementing an investment strategy and developing a wealth building campaign.

4. Pick The Right Mortgage.

If you plan on holding onto your home for a short period of time, select an adjustable rate mortgage as your rate will be lower than a fixed rate mortgage. Use the amount saved to pay down your mortgage quicker; refinance your home if rates begin to climb.

5. Build An Emergency Fund.

Without an emergency fund your well-laid out wealth plans will be wrecked. You will be tempted to take on debt, cash in your retirement accounts, and sell valuable investments. Thus, its wise to set aside up to six months of your income to live on in times of emergency.

6. Protect Your Assets.

No matter how healthy your portfolio, it can one day disappear into thin air. Take the necessary steps to make sure that all your assets (business, REITs, Stocks, etc) are insured properly. All it takes is one legal judgment against you to wipe out your assets.

Building wealth is as simple as saving a little bit here and a little bit there. You need not have great riches in order to accumulate wealth, but you need to have the drive, determination, and discipline to successfully increase your wealth.