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5 Steps Everyone Must Take to Get Rich


5 Steps Everyone Must Take to Get Rich

These moves will be your foundation for establishing positive financial habits that will move you closer toward your goal.



The millennial generation is at the point now where they’re starting to think hard about how to build long-term wealth for themselves.
When I was young, I was really bad with money, but now I’ve learned that when it comes to building personal wealth, often the best strategies are the simple habits that, when properly implemented, end up paying off big in the end. The challenge, of course, is that financial responsibility is not always easy when bills are piling up and you feel as though you don’t have the ability to save. But part of building wealth is learning to discipline your spending habits so that you are always operating in the positive -- instead of racking up debt.
If building true wealth for yourself is something you’re interested in, these 10 steps will be your foundation for establishing positive financial habits that will move you closer toward your goal.

1. Never operate at a loss

The most simple step toward building wealth that people struggle with is spending less than they make. It might seem ridiculous, but it’s the truth -- many people spend more than they make and float the difference on credit cards. They assume they will make more in the future and that it will all “even itself out,” when in reality, the moment they start making more money, the more they spend.
The bad habit stays, and they continuously operate at a loss.

2. Place a tax on yourself.

If the government suddenly increased taxes and forced you to pay an extra $100 each month, you’d find a way to pay it. You would have to. Yet when it comes to saving money, people constantly find ways to rationalize their inability to sock away $100 each month.
Set up an automatic bank transfer so that as soon as you receive your paycheck, a small portion of it immediately goes into your savings account. You should pretend it doesn’t even exist. And a few years from now, you’ll thank yourself.

3. Open an IRA account (to accumulate interest tax free)

One of the best things a young person can do is open an IRA account, which can double as either a primary or secondary savings account. The intention here, however, is that money is not touched until much later in life. If you withdraw from it before the age of 65 you are penalized. The bonus, though, is that your money in an IRA account can grow tax free, which compounded over three or four decades ends up being a lot of money.

4. Don’t play the stock market

Unless your day job is trader, don’t try to time the stock market. Don’t think you’re smarter than the stock market. Don’t think you know which stocks are going to do well and which ones are going to do poorly. To think that you can do casually what some people make their entire careers is naive and reckless. At best, it’s gambling.
Instead, invest a portion of your money that you’re willing to lose in companies you like and want to hold on to for years to come. It’s best if you make these decisions with a financial advisor, and even better if you purchase these long-term options inside your IRA account. That way, your gains remain tax-free.

5. Build a side hustle

Even the world’s most successful entrepreneurs have side hustles. According to Warren Buffet, the average millionaire has seven sources of income. Having multiple income streams is just part of the process.
The best thing you can do is figure out what you can provide or offer people that delivers true value. A perfect example is internet famous entrepreneur Sam Ovens, who has made millions selling online courses and consulting business owners.

Comments

  1. Enjoyed reading the article above , really explains everything in detail,the article is very interesting and effective.Thank you and good luck for the upcoming articles

    ReplyDelete
  2. These are just simple tips many people are aware of this. Your heading not supported your article anyway, Good Luck.

    ReplyDelete
  3. Need more effort to make your post effective anyway best of luck.

    ReplyDelete

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