No matter how you define wealth building, it’s important to start now. Time is one of the greatest factors when it comes to wealth building, so use it to your advantage. Here are four gems to remember on your wealth building journey.
The time is now
There is not a specific time when you should begin creating wealth. Begin with working towards paying debts off so that you have more disposable income to invest in stocks, bonds, businesses, etc. The more you owe, the less you have to invest.
Stack your savings
You need to have liquid savings before beginning to invest as a way to build wealth. This cash should be designated for emergency situations and kept in a safe place, preferably one that doesn’t get hammered by the sea of changes in the financial markets. A traditional savings account or money market account are options.
Double your money
Contributing to your employers retirement program can be considered investing; however, due to the fact that many people are living longer and healthier, it may not be enough to live comfortably throughout retirement. With fewer companies offering pensions, the burden of saving for retirement is on the individual and your 401k or 403b may not be enough. Research stock options, individual retirement accounts or additional wealth building options to double your money.
Experts exist for a reason
The best place to seek guidance is by contacting a CFP® (Certified Financial Planner). Investing is a good start towards building wealth, but it’s most impactful when incorporated in a plan. Without guidance, there may be instances where your investments may be negatively impacting your taxes and other parts of your planning.
Start where you are.