Learn the truth about money and wealth building.
I'm going to push back on experts who write about how to build wealth!
The articles usually go something like this:
Budget yourself silly.
Don't spend any money.
Don't live beyond your means.
Pay off all debt.
Contribute to your 401k.
Have a great life! Lol!
Some of these have merit, but some don't.
I'll go through each point in a minute.
I'm going to give you a step-by-step plan.
There are two different financial scenarios - one scenario for people that have massive credit card debt and one for those who don't.
Credit card debt and student loans are a real problem that need to be taken care of first.
High interest rates compound and grow quickly so the debt will grow fast unless you vigorously attack it.
Make them Priority #1!
Student loans may be at low interest rate, but it is not excusable in court even in bankruptcy. It's a permanent weight around your neck that has to go!
Let's revisit the points I mentioned earlier.
1. Budget yourself silly.
2. Don't spend any money.
Budgets can be hazardous to your wealth! Like diets: feel restrictive, want to go off them, can give you a bad relationship to money.
Don't live beyond your means - Obviously!
Don't get yourself into consumer debt except a mortgage.
Pay off all debt - wrong! A mortgage is ok, tax deductible. You need to establish credit. Pay off debt that's not mortgage debt or business debt that you are successfully using to grow your business.
Contribute to your 401k - yes, but it's not enough if that's all you do to save and invest!
Have a great life! Lol! How can you spend nothing, try to pay off a huge mortgage, pay for kids to go to college and have any money left to enjoy life?
The second financial scenario is for people who earn more than they spend.
For them I have advice that I call the 6 Steps to Wealth.
1. Create a wealthy mindset
Work on a positive mind, thoughts, goals.
Repetition.
2. Save a nestegg
Save money to invest, need capital to start.
3. Find a mentor
Follow people who have successfully made millions, not starving journalist.
4. Invest in a money engine
Must invest to create wealth! Can be a business, stocks, real estate, etc. No one way is right, but be smart about valuations you are paying! Money moves in cycles and peaks in bubbles.
5. Compound at a high rate
Let your money compound. Try to improve your rate of return. Bank vs. stocks
6. Protect your wealth
Don't lose the wealth you have created.
To get "11 Quick Financial Tips to Boost Your Wealth", go to www.lindapjones.com.