6 Proven Wealth Building Strategies

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					6 Proven Wealth Building Strategies
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. Let’s look at 6 proven wealth building strategies
you can put to use 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. If your employer has a 401(k) or 403(b) plan, enroll in
it and set up a reasonable percentage to invest. The money will come out
before you see your paycheck, therefore the “loss” of discretionary
income will be less noticeable to you. Maximize your contribution if you
are able, especially if your employer matches your contribution.
2. Save Now. The earlier you start to save in your life, the more you
will have later in life. Of course, if you aren’t able to save much until
after your children are grown, you can step up your savings until you
retire and still have a decent nest egg.
3. Get Rid of Debt. Even before you build up your savings it is best to
get rid of your debt first before starting a wealth building campaign. If
your credit card rate is 14% you will find it difficult to find any
investment that gives you a return that exceeds that rate. It would be
better for you to pay down your debt first and then implement an
investment strategy.
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. Nothing wrecks the best laid plan more than
an emergency, particularly one that costs you money. Set aside up to six
months of your income to live on in case catastrophe hits. Without an
emergency fund you will be tempted to take on debt, cash in your
retirement accounts, and sell valuable investments. Try recovering
quickly from this sort of hit to your wealth without an effective back up
plan!
6. Protect Your Assets. You can have a healthy portfolio and see it
disappear quickly if you are not properly insured. Make sure that your
health/dental, homeowner, life, and disability insurance coverage is
adequate to meet your needs. All it takes is one legal judgment against
you to wipe out your assets.
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.
Matthew Keegan is The Article Writer who writes on just about any and
every issue imaginable. You can preview samples from his high performing
site at http://www.thearticlewriter.com

				
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posted:10/19/2010
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