Three Quick Tips for Building Wealth.

by Ken Rupert. 0 Comments

Have you ever wondered what it takes to build wealth like the big boys? What makes those who possess large amounts of financial resources different from those who live paycheck to paycheck? Beyond remaining debt free and making frugal purchases, they think in terms of three basic principles. If you can incorporate these three principles into your thinking patterns, you too can build wealth. Cash – This seems obvious but it is not just earning large amounts of money that produces great wealth. It is how they use cash that set them apart. They do not exchange cash for stuff. They are frugal when they make purchases and they are not interested in impressing others. This allows them to preserve vast amounts of financial resources. They then invest these resources in various ways that result in substantial growth. Never investing in that which they do not understand. If you cannot explain it to your ten year old, stay away from it. Compounding – You have to understand the power of compounding to grasp its importance in building wealth. The big boys believe they have worked hard for they resources and they require their resources to work hard for them. A person saving $2,000 a year for only eight years (between 19 and 26) can retire with nearly $2.3 million at 65 by gaining a return of 12 percent annually. Your wealth building behaviors must include the principle of compounding. Putting money in a savings account earning the going interest rate will never be enough to build wealth. Commitment – A wealth building plan must be part of your overall life strategy. Once developed, you must be committed to funding that plan. If you fail to consistently fund your wealth building plan you will fail to realize the full potential of your resources. Sporadically funding your investment plan will cause you to miss the market fluctuations that add value and increase potential returns. Have your investment dollars auto-drafted into your investment accounts (including 401k’s, health savings accounts, brokerage accounts, and Roth & Traditional IRAs) so the resources do not appear in your monthly budget. Shifting your paradigms to include these three simple principles will position you to build wealth like the big boys. Eventually you will get to the point where you money makes more for you than you make for you. And that is a cool place to be. To learn more about personal life coaching visit http://kenrupert.com

Leave a Reply