Get rich quick is the way most people view the route to wealth. However, very few people achieve that goal. Wealth is almost always built by devising a plan that involves saving money consistently and wisely over many years.
Start as soon as possible.
If you could start yesterday, it would be better than starting today. However, if you wait longer, the mountain climb toward riches becomes much steeper. Even putting in small amounts today beats trying to save huge amounts of money tomorrow.
Do not stake your future security to things that have not happened.
Never allow yourself to dream that the day will come when you will have so much income that saving a lot of money will be easy. It does happen for a few people. Unfortunately, if you do not save small amounts now, the odds are high that you will increase your level of living enough to keep from saving when your income is larger.
Begin saving with your first paycheck.
One problem that many people face is the inability to live on less income to set aside an amount for saving. These same people pay their taxes out of each paycheck and learn to live on their net income. If you start an investment deduction with the first check of a new job, you will find it easier to live on your new net income. The savings will be automatic.
Think long term.
This is a lifetime commitment. Achieving large financial goals takes a long time. Frustration can set in if you do not plan for a horizon that is far enough away. Watching a savings account grow is like waiting for water to boil. When you just let it happen, it is done before you know it. If you stare at the pot, it seems like eternity passes before significant bubbles break the surface. Over a 5 or 10 year period, big changes can happen to your nest egg. Just leave it alone and keep building it.
Set up a savings plan.
Spend some time and decide where you want to end up with your savings. Each person has his or her own definition of rich. Some people view rich as a few hundred thousand dollars while others require many millions of dollars before they feel rich. Once you have determined a possible target, you can begin to establish the type of plan that you will need to reach it.
Look for growth investments.
Find a good IRA, 401(k), 403(b), Roth IRA, or other investment vehicle that has a history of returning 12% per year or better. Invest just $100 per month for 20 years. It will exceed $100,000. Stretch that to 40 years. You will have over $1,000,000. Save a car payment of $300 per month, and you will be a multi-millionaire when you retire with $3,500,000 or more.
Learn how investments work.
If you are not financially savvy, find a good reliable trustworthy investment adviser to guide you. Ultimately, it is up to you to do the homework so that you can be certain that you investment manager is doing a good job. By doing the research, you can actively participate in your own personal quest for riches. By staying with various types of mutual funds, you should be able to earn a good rate while having a low risk of big losses.
Develop an income stream dedicated to building wealth.
If you can find a separate source of income from your main career path and job, this makes a great tool for funding investments. None of this income is needed for living expenses. This means that you can afford to take some risks early in the wealth building process without damaging your ability to survive financially. An internet business, using a hobby to earn income, or doing side jobs can all generate monthly cash to bolster investments.
Always look for extra cash to invest.
Instead of viewing tax refunds, bonuses, or other sources of unexpected income as ways to fund pleasure, use them to propel your quest for riches into a higer gear. Almost any extra amount added to your investments will help create momentum for faster earnings growth on your money.