Proven Wealth Building Plan That Can Make You Rich at Any Age
Wealth Building Plan
Having financial freedom generally means having enough savings, investments, and cash on hand to afford the lifestyle we want for ourselves and our families, plus a growing nest egg that will allow us to retire or pursue the career we want without being driven by earning a certain amount each year.
Whilst that all sounds great, unfortunately, not many people manage to achieve it. The burden of increasing debt, financial emergencies, overspending, and other unexpected financial issues are usually the things that thwart us from reaching our goals. Even those people with the best intensions can fall foul to things they could never dream of happening, such as the recent corona virus pandemic, that had a drastic effect on the world as a whole.
Don’t Delay – Start Today!
For the majority of people, becoming rich won’t usually happen by luck, such as winning the lottery, or some other unforeseen circumstance. And so, expecting luck to bring a financial windfall will only delay the time you have to build your wealth.
The money spent on lotteries and other get-rich-quick schemes will be better utilised as savings and investments, as the only way to really create wealth is by diligently working to do so.
Whatever age you are, the principles to building wealth are remarkably similar.
If you were wondering how to build wealth in your 20’s, how to build wealth in your 40s and even how to build wealth in your 50s, it may surprise you to know the answer is not that different, it’s just the younger you are, the more time you have!
So, whether you’re 25 or 52, building wealth starts with proper planning at every stage of your life. It’s easy to read about millionaires and successful investors and think that their strategies don’t apply to you. But they do. No matter how little you have, with patience and planning you can still build wealth from nothing.
Wealth Building Strategies
When thinking of wealth building strategies, or how to create wealth without money, a financial plan is crucial. You plan should include things like;
- A definition of exactly what financial independence means to you – following someone else’s definition won’t get you there
- A realistic picture of your current financial situation
- ideas as to what you’ll have to give up, to get where you want to go
- An assessment of any obstacles in your path that you might encounter
- A series of goals that will help you to become financially independent
Becoming financially secure isn’t a single goal, but a series of sub-goals. This is because your financial life has several facets. In order to reach your overall goal of financial independence, you’ll have to establish goals in the various areas of your financial life, including,
- Increasing your income
- Taking control of your spending habits
- Paying off any loans and credit card debt
- Making saving money a habit
How to Build Wealth UK
Believe it or not, how you think could have an effect on how financially successful you are – the answer to ‘how to become wealthy’ could involve a simple mindset change. A recent interview with 4 self-made UK millionaires highlighted one thing they all had in common – it was the belief that, “… success, fulfilment and happiness are the natural order of existence..”
This single belief drives the great ones to behave in ways that virtually guarantee their success.
The rest of us believe we’ll never be rich, and so since beliefs drive behaviour, that negative belief leads us to behave in ways that guarantee that outcome. Change your beliefs, and your behaviour will follow.
How to Create Wealth in 10 Years
Take a second to think about what your life was like 10 years ago. Things probably looked a lot different back then, right? Maybe you were still in college. Maybe you weren’t married yet and didn’t have any kids. You might have even had a completely different career and salary.
Now let’s talk about the future: What do you want your life to look like 10 years from now? That’s a lot to think about! But listen to me: A lot can happen in a decade, and what you do right now—no matter what age or stage of life you’re in—will have a huge impact on where you are 10 years from now.
How to Build Wealth From Nothing
To accumulate wealth from nothing, you need to save money, increase your income (or find an additional source of income) and then deposit the extra cash into a separate savings account. To top up your salary, look into things like selling online or part-time freelancing, as these are effective ways to either start earning, or earn more.
Once you have some income, cut your expenses and put that money towards paying off any debts. When your debts are paid off, add that money to your savings account instead. Remember, even a little bit helps; something is better than nothing, and they are all ways in which you can increase your wealth.
Frugality is the key!
Save more, spend less. This is a mantra to live by if you want to become a millionaire. By saving a large portion of income you free yourself from a payday to payday lifestyle and can start to save for investment. Even millionaires often live and spend comfortably below their means. In fact, 50% of millionaires budget and consider themselves frugal!
For those just starting to save and kill debt, focus on keeping housing, food and transportation costs low. Even if you can afford it, choose a rent or mortgage that doesn’t take much of your income. Take public transport, bike and walk when possible. Buy a second-hand car if you need one. Cook at home. Practice self-control and avoid the temptation to blow your savings on trips, take-away meals and shopping sprees.
Together, these frugal habits help you build up savings for investment.
Put simply, to accumulate wealth over time, you need to do four things:
- Make money. Before you can begin to save or invest, you need to have a long-term source of income that’s sufficient to have some left after you’ve covered your necessities and debts.
- Pay Off Your Debts. Cut up those credit cards once they’re paid off, so you’re not tempted to use them again
- Save money. Once you have an income that’s enough to cover your basics, develop a proactive savings plan.
- Invest money. Once you’ve set aside a monthly savings goal, invest it prudently.
Manage Your Money More Effectively
By learning how to manage your money more effectively you could find ways to cut down on your outgoings, therefore freeing up extra cash to invest/save. Don’t automatically renew any insurance or other policies that due to expire. Shop around for better deals or try to negotiate with your existing supplier for a better deal.
Setting up direct debits, automatic payments and account alerts doesn’t take much time, and the payoff is immense. You’ll have one less thing to worry about, so you can focus your full attention on the big-picture factors that will help you to build your wealth.
Invest Money Appropriately
When we look at investing money, it’s easy to procrastinate, telling yourself that it’s not the right time, that you’ll start investing next month, but if you’re serious about investing to build wealth from nothing, you’re in it for the long term. So, start now!
So, let’s say you’re making enough money and saving enough, but you’re putting it all in conservative investments like the regular savings account at your bank.
That’s fine, right?
If you want to build a sizable portfolio, you have to take on some risk and one of the most popular ways of making money is to dabble in the stock market and look to invest in stocks and shares.
But, where do you start though if it’s not something you have experience of?
The simple answer is consult the professionals. Talk to a shares broker or other type of investment company to discuss the options available to you. They do say ‘the greater the risk, the greater the reward’ but tread carefully if you’re only just starting out and be aware not all gambles pay off, so you could end up worse off than when you started.
When financial freedom synonyms include things like; independence, wealth, fortune, prosperity, opulence, self-sufficiency, stability, having no debt etc etc, it’s not surprising that it’s one of the main things most people aspire to.
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