Personal Finance and Investing

So you want to be wealthy, but have no idea on how to start? I’m going to let you on a little secret. Building wealth is not rocket science, it requires discipline and resources. Start by setting a realistic financial goal.

It is common for individuals believe that it takes large sums of money to become wealthy, so they make excuses about if i had a lot of money I would do this and that. Well guess what, if you lack discipline you will be back right where you started. The first mistake individuals make is bigger paycheck equals upgrade. Well, here is a newsflash, if you continue at that pace you will never have a buffer/comfort zone and one mistake could put you in a serious financial hole. There are only certain circumstances that upgrading would be ok: family and if you live in an unsafe neighborhood. If neither applies to you then, STAY PUT! Building your credit is the best decision you can make in building wealth. When you have a high credit score you entitled to the cream of the crop, you get the best interest rates, you get government grants for home buying, you just get the best of everything. Check out my article “Building your credit” when your done reading this one.

The first step in wealth building is setting a financial goal. Financial goals are going to vary from person to person. Once you have established your financial goal you have something to work towards. Setting goals and accomplishing them builds confidence and momentum. Do not get caught up in “analysis paralysis” meaning try to focus on your current financial status and not spending a lot of time with projections a.k.a “the what if’s”. If you are making $30,000 a year base your planning around that and NOT around if I was making $50,000, I could do this or that. Once you have tackled your goals lets move on to how to accomplish them.

The next step is too minimize your expenses. Often times individuals make goals, but are not willing to make sacrafices to accomplish their goals. If you have to be a frugal for a time period in order to reach your goal then that is what needs to be done. You can start minimizing your expenses by buying generic brands instead of the name brand products. I find that some of the generic products are sometimes better than the name brand product. If you have channels included in your tv package that you watch once a month, you need to down grade to standard package. If you don’t watch t.v then you are already saving money, good job! Remember, the internet has become very popular over the years a lot of the shows on t.v can watched over the internet. You must be real with yourself buy things you need not want.

The next step is to do research and find your resources. Do not commit to anything before doing your research. Make sure you make comparisons of products. Try your best to find alternative ways of doing things.

The final step is to make sure you have fun. Yes, I know you are on a budget, but that does not mean you can’t blow off some steam. You will go crazy if you don’t. Try to find outdoor activities with your friends, you don’t have to spend money to have fun. Good luck!

Remember your best investment is yourself, you are in control of you!

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