Slow But Sure: How to Build Wealth Gradually
Americans spend about $1,000 a year on lottery tickets. That doesn’t count the billions spent on gambling and sports betting.
While those things are considered entertainment, for many, they’re a way to get rich quickly. We’ve become conditioned to think that we can get rich in an instant.
It rarely happens.
It takes time to build wealth. If you constantly try the get-rich-quick schemes, you’re not very likely to be successful. You’re probably going to end up broke.
Do you want to know what it really takes to build wealth? Step away from day trading and put down your lottery tickets. Keep reading to learn how to build wealth.
1. Get Out of Debt
You can’t build wealth if you’re deep in debt. There are some forms of debt that are OK to have, such as low-interest mortgages.
Debt with high interest rates such as credit cards won’t let you build wealth. They’ll keep you stuck in debt for years to come.
If you can pay down your debt, the easier it becomes to build wealth. Create a strategy to get out of debt. If you have a lot of credit card debt, you can consolidate it into a low-interest loan.
Another strategy is the snowball method, where you pay off one card at a time.
2. Adjust Your Mindset
You have to believe that you can build wealth. It might feel impossible from your starting point, but if you don’t believe it, there’s no way that you’ll build wealth.
It’s likely you’ll have to contend with old money beliefs, too. This is your chance to create an abundance mindset and dispel those old money beliefs once and for all.
Check out resources like books and podcasts to help you develop a strong money mindset.
3. Set Goals
Goal setting is another piece of the foundation to build wealth. Start dreaming and write down not only what kind of wealth you want to generate, but what it will do for your life.
Don’t get overwhelmed by looking at your starting point. You’ll talk yourself out of taking any action whatsoever.
Break down your big goals into small steps that you can take right now. For instance, you might not be able to save $1500 a month. You can save $20 a month.
That gets you on the path and you’ll be able to create enough momentum to reach your goals.
4. Educate Yourself
Learning how to build wealth isn’t something that gets taught in schools. You have to learn strategies for wealth building on your own.
There are a ton of resources available about investing and finances. Read books, listen to podcasts, watch YouTube videos, read blogs from thought leaders.
Learn as much as you can about building wealth so you can make better financial decisions.
5. Build an Investment Portfolio
You could stash money in a savings account. The average savings account interest rate is .06%. Sure, you want to build wealth slowly, but this is a little too slow.
You could keep $5,000 in savings and in five years, you’ll have about $5,152.
You have to choose the right investment vehicles that match your goals. Let’s say that you’re saving for retirement and you’re in your 40s.
You don’t have much time to save and build wealth, so you’ll need to go with an aggressive growth strategy. If you start earlier, you can afford to be more conservative with your investments.
Real estate is another investment that allows you to build wealth slowly. It’s also a very stable asset that usually appreciates over time.
An investment property generates income and gives you many tax benefits. Real estate is seen as one of the main strategies to build wealth.
6. Don’t Change Your Lifestyle
Do you feel like you have to put off purchases or deprive yourself because you don’t have enough money? When the money comes in, you’re going to spend it on the things you’ve been putting off.
That’s a money cycle that keeps you in debt.
As you start to build wealth, you might want to buy a fancy car or a bigger house. That kind of lifestyle change isn’t going to help you build wealth.
It will keep you stuck in that cycle of just getting by.
You need to stay disciplined with your finances. Don’t spend money just because it’s available. Build strategies that allow you to enjoy your successes while continuing the path.
For instance, you might have a system in place to put a certain percentage of earnings into a new investment. You can set aside a small percentage for enjoyment.
That creates a balanced approach so you can continue on the path toward building wealth.
7. Start Now
You might be in your late 40s with a ton of debt and little to show for the years of work you put in. You might think that it’s too late or you’ll never get there.
Yes, it’s better if you start your wealth-building journey earlier in life. Don’t ever think that it’s too late to start your own journey, no matter what age you are.
Start now, and take small steps to build wealth. You’ll make progress over time. In 2 years, you’ll be shocked by where you are.
How to Build Wealth Sustainably
It doesn’t take a miracle moment to build wealth. It does take a lot of hard work and dedication to create wealth.
Adjust your mindset, choose the right investment strategies, and start small. Most importantly, start now. The longer you wait, the harder it’s going to be.
Do you want more helpful tips and insights to gain financial freedom? Check out the blog for articles about building wealth today!