Five Secrets to Building Wealth
With one percent of people now owning half of the world’s wealth, it might make you wonder if wealthy people have some sort of secret that the rest of us just haven’t learned yet. And actually, that might be true to some extent. There are certainly things you can do to build more net worth. You might not become a billionaire by practicing these five habits, but they are common among wealthy, successful people.
Consider your goals when making spending decisions. You might picture millionaires enjoying a nonstop spending spree, but most of them actually don’t live that way. You become wealthy by setting goals, aligning spending with those goals, and then keeping your priorities in check even after you’ve made your fortune. Identify what matters to you, and stick with it.
Don’t compete. Resist the urge to spend money in an attempt to “keep up with the Joneses”. Buy what truly matters to you, and always live below your means. Competing financially is one of the surest ways to squander a fortune.
Prepare for emergencies. If you suffer a financial setback, borrowing money to dig yourself out of the hole could set you back for life. On the other hand, if you can access liquid resources, you could sail through rough economic times relatively unscathed. Wealthy people always have a Plan B.
Manage your tax burden. There’s a difference between paying your fair share, and paying more than you have to. Successful wealthy people realize that there’s no point to over-paying Uncle Sam. Work closely with a skilled tax professional to lower your tax burden as much as possible, and preserve your own wealth.
Surround yourself with the right advisors. Wealthy and powerful people rarely accomplish enormous goals 100 percent alone. They understand the importance of surrounding themselves with smart advisors, and you should too. Consult with an experienced financial advisor on matters like investing and saving to help ensure that you’re making the best choices possible for your situation. Give us a call, and we can work together to plan a long-term financial strategy to accomplish your goals.