11 Top Tips on How To Build Wealth

How To Build Wealth – T. Harv Eker once said, “Rich people believe ‘I create my life.’ Poor people believe ‘Life happens to me”. Anyone who ever waited for life to happen to them has never had anything to show for the wait afterward. Wealth is for those who take the bull by the horn, and if you ever stand the chance of creating a long and lasting wealth legacy, then you must be intentional about it. Before a farmer plants, the ground will have to be tilled and made ready for the seeds that are to come into it, and the same goes for anyone who wants to create wealth. You must be willing to change – ideologies, mindsets, and beliefs. You have to put yourself in the position of harnessing every available opportunity to grow wealth. And listed here are some of the things you need to start doing right away.

11 Top Tips on How To Build Wealth

1. Know that wealth is earned and not given 

Anyone can give you money, but the same cannot be said for wealth. Wealth is earned, and there is just no way around it. Even those who inherit properties worth millions of dollars earned the right to such inheritance by being related. It wasn’t just handed down to a random individual. Wealth is the result of creating value consistently over time. So to become wealthy, know that it’s required of you to hone your skill to razor sharpness and put in the work.

Yes, it is going to take a lot of hard work, grit, and determination. Especially if you’re not a Walton or Koch. It’s possible to create wealth. And even if you do not come from a wealthy family, You should ensure that you leave behind, a wealthy family.

2. Always look for ways to earn more 

Trading your time for money won’t ever make you wealthy. Sorry, 9-to-5ers, but that’s the way it works is in real life. Not that there’s anything wrong with working at a regular job. But if you dream of wealth, you have to do more. Asides from not being likely to plant you on any Forbes list, solely working for someone is risky.

What if you get sacked? What if there is an economic recession that eats in so bad that you have to be laid off? There is so much that can happen if you only have a single stream of income. Don’t get me wrong, there’s nothing wrong with a regular job, but start a business on the side to complement it. With time, you can develop it further till you can safely exit your cubicle and turn your side hustles to your primary sources of income.

Find a way to monetize whatever it is you are good at. Create a YouTube channel, start a blog, write a book, create a scalable product or service. The internet provides anyone with the leverage to produce themselves and make tons of money along the way. There are only so many hours in a day, and selling them for cash won’t get you far.

3. Cut down on frivolous spending 

This goes without saying. You cant build wealth if you cant rein in your spending. Avoid the mistake of trying to look wealthy rather than being wealthy. There will be time to splurge on a brand new $200,000 automobile and galivant on a yacht. But right now, your focus is to build wealth. And spending money on anything that does not further your ambition will only derail it. I’m not asking you to deny yourself a nice treat once in a while.

However, this should not be too often. You can treat yourself after completing a goal or a task. This gives you a sense of accomplishment and a taste of the better days that lies ahead. When you finally start making some good money, It’s tempting to go after the finer things of life and lean towards a lavish lifestyle. Don’t fall for it, at least not yet. Your work here is not yet done.

4. Have a constant saving policy 

When you can control your spending, it follows that you must save. Developing a saving habit is vital if you are to implement the next phase I will be talking about shortly. I know there are bills to pay, commitments to fulfill, and whatever else you have to buy, but in all these, have a percentage of your regular income kept aside. Let me tell you why.

Asides from having cash for emergencies, having substantial cash in savings can help you harness money-making opportunities when they arise. It could be a once-in-a-lifetime investment opportunity or a distressed property sale. Money loves speed, and those who have something set aside can easily take advantage and prosper. Being prepared to seize opportunities is an essential factor in creating wealth. Please don’t take it lightly.

5. Put your money to work!

For money to work on your behalf, you need to have money. That’s why having a diligent saving culture is one of the vital pillars in accumulating wealth. But don’t save for the essence of saving. Learn to put your savings to work as soon as an opportunity comes. Rather than have your cash idle in a bank account, you could invest in real estate, stocks, and several other options that will yield interest in the long term. This doesn’t mean you should take unnecessary risks. Ensure that every emerging opportunity is viable and legal because there is no point in saving up only to lose everything in the process.

6. Marry a good spouse 

Like it or not, this is very important. Two heads, in most cases, are better than one. And having a spouse who shares your dreams and stands by your side to spur you on to reach your goals will always be an added advantage. Choosing the wrong spouse could be disastrous based on a study that says divorce consumes about 75% of personal net worth. Apart from the money it can take from you, your emotional balance will always flutter from time to time, leaving you uninspired to take on personal dreams, goals, and aspirations. The distractions of an unhappy home will take their toll on your wellbeing and finances. Choose carefully. Knowing that you have a partner, you can lean on in times of turmoils and challenges is vital to building a successful wealth legacy.

7. Have a good insurance plan 

A black swan event can bring you to your knees financially if you don’t handle it properly. This is why it’s crucial that you prepare for such eventualities by having a good insurance plan. And not just life insurance but disability and health insurance as well. Insurance is perfect when everything works smoothly to prepare you for when it doesn’t. It would help if you protected your growing wealth by being ready to handle life’s unexpected unfavorable events.

It would be best if you had at least a short-term and long-term disability, health insurance, and life insurance plan. Being wealthy means that you can handle any financial obligations that come your way, and having an insurance plan is an excellent way to go.

8. Your friendship circle should always inspire and motivate you

A rich man who has 9 poor friends will eventually become a poor man sooner than later, or an eagle that lives amongst chicks will never know what it means to fly to certain heights. Surround yourself with those who are either on the same journey as you or are on track to achieving what you want.

Your friend circle is an essential factor in actualizing any dream you have, and they always have an important role to play. When you run alone, you run fast, but when you run with your friends, you run far. Choose your friends, don’t let them choose you.

9. Prioritize cutting your tax as much as possible 

By Prioritize, I don’t mean you should skip your taxes because that’s a foolish thing to do. I suggest you should use tax-advantaged accounts for investments. Here are some you can try out.

  • A 401(k) account allows you to shun taxes for a year on all the money you contribute to it. So, for every dollar you put in that account, you can save up to $0.30 depending on your tax rate, which is money you can use for other things. Although you will have to pay income taxes when you withdraw it at retirement, at that point, you are very likely to be in a lower tax bracket.
  • A Roth IRA account works by taxing every money you put into the account. Then unlike the 401(k) account, you are not required to pay any tax on the withdrawal. This account is beneficial if you feel the taxes you will incur after retirement is more than what you are currently being billed.

Accounts like the 529 college savings account and the HSA (health savings account) works similarly to the Roth IRA account. The difference is that you can only use the money for specific purposes for it to be tax-free—purposes such as education expenses and health care expenses. Whatever account you choose to operate will serve the same purpose and save you some cash in the process.

10. Learn to stand when you shouldn’t 

Some moments might make you feel that all the effort you are putting in to ensure your financial security and that of your family is not worth it. But in such moments, always remind yourself that you have come too far to give up. Cheer yourself up with victorious moments because I am very sure you will have them. Encourage yourself to be the best available, and it is at such pivotal moments that having the right spouse and surrounding yourself with the right people becomes beneficial. As long as you are alive and kicking, then I can assure you that there is every possibility to scale through that challenge or obstacle that seems to stand in your path to wealth.

11. Get a mentor 

Having a mentor that you can learn from is equally beneficial to sustaining your goal of becoming wealthy. You can avoid the errors they made and even better their accomplishments. They act as a map to what you’re intent on achieving.

We all know what a map does, right?

Yeah, that’s right, It helps us save time. In conclusion, anyone can become wealthy. However, only very few make it into the billionaires club because wealth is a result of deliberate, focused action, powered by iron-clad discipline. Naturally, not many people are cut out for that. They prefer the short-cut approach to wealth rather than rigor and unglamorous hard work, which is a prerequisite for creating wealth.

The fundamental of building wealth is a rather simple one – earn as much as possible while spending as little as you can. If you can afford to stick by this simple rule and play the long game, you’ll be rewarded with wealth.

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