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9 Ways To Build Wealth Fast (That Your Financial Advisor Might Not Tell You)
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The Slow And The Fast Way To Build Wealth
- The long-term approach to wealth building: If you’re younger and your income limits allow, open up a Roth IRA. Invest in mutual funds and ETFs while making sure you have enough cash in your emergency fund.
- For a faster approach more aggressive measures are necessary, like saving and investing on education, a business or real estate.
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“Great wealth builders focus on both saving money and earning more.”
Todd Tresidder
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9 Ways To Building Wealth Fast
- Save on vehicles. Before buying a car, investigate vehicle reliability, pricing and financing.
- Rent. Most rentals offer more flexibility in case you need to move. Also, not having the mortgage payment allows you to start saving earlier.
- Don’t be a consumerist, buy only the things you really need.
- Save a percentage of your income so you have more money to invest.
- Work hard on your current work regardless of your feelings for it. It’s easier than finding a new great opportunity and may lead you into a promotion.
- Educate yourself even if it doesn’t bring any immediate benefit, being educated opens new opportunities on the long run.
- Invest in yourself and your marketing to open up new opportunities.
- Being an entrepreneur is the best way to maximize your earnings, short of being an investor. Try it, even if it fails the learning from it will be invaluable in your next attempt.
- Real estate won’t make you rich overnight, but it’s a solid strategy to increasing your network.
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SIMILAR ARTICLES & IDEAS:
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From consumer to investor
A consumer spends money and follows trends while an investor puts capital to work and takes advantage of trends.
Chronic...
Discover if you’re a consumer
- You feel the need to reward yourself after a hard day of work by buying new clothes/accessories or eating out.
- Lifestyle creep controls your expenses. When your income increases, you buy a new car or a more expensive house.
- You reserve your credit card for unexpected expenses instead of using an emergency fund.
- You rationalize using a credit card to buy things you might not purchase with a debit card.
- When something is on sale, you feel the urge to buy it, even if you wouldn't have otherwise bought it.
- You follow social trends.
- You don't think you have money to invest or the time for it.
The chronic consumer
Consumers will remain consumers, even if their income increases.
- Negative spending habits can destroy your financial life, and disrupt your mental health and relationships.
- Credit card debt can put stress on the quality of your life an contribute to unhappiness.
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Common investment questions
Two of the most common investment questions are "what do you invest in " and "what are the best investing strategies"?
The best investing strategies are...
Shady investment advice
Bad investing advice can come from many quarters, such as wealth expos or financial advisors. If anyone promises you any type of return over 12%, 99% of the time, they are probably playing you.
There are great financial advisors out there, but many people who sell investment products just want your money. However, it's not that hard to invest for yourself.
How to avoid bad investment advice
- Never buy a financial or investing product from someone you just met.
- Getting returns over 12% per year is ridiculously hard. If it sounds too good to be true, it is.
- If you don't understand it, don't invest in it.
- If one of your friends recommends an investment that's making them a lot of money, they are probably suckers too. If you see the "results not typical" on any marketing materials, move on.
- There are no "secrets of the super-wealthy" that anyone will sell you for $500 or that you can take advantage of unless you have hundreds of thousands of dollars.
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Investing defined
Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.
Most of the time, this is best achieved th...
Productive assets explained
- Productive assets are investments that internally throw off surplus money from some sort of activity.
- Each type of productive asset has its own pros and cons, unique quirks, legal traditions, tax rules, and other relevant details.
- The three most common kinds of investments from productive assets are stocks, bonds, and real estate.
Investing in Stocks
- It means investing in common stock, which is another way to describe business ownership or business equity.
- When you own equity (the value of the shares issued by a company) in a business, you are entitled to a share of the profit or losses generated by that company's operating activity.
- Equities are the most rewarding asset class for investors seeking to build wealth over time without using large amounts of leverage.