Building wealth isn’t rocket science, but it isn’t always obvious, either. While the foundation of building wealth is in smart savings habits, there are numerous other steps to the process that can both expedite the process and boost your savings potential. So with that in mind, I’m sharing my five most unexpected steps to building wealth.
1. Stop Procrastinating
The longer you wait to start building wealth, the more you stand to lose. Procrastinating on your savings and wealth building plans only keeps you from taking advantage of compound interest. The more time you give yourself to collect interest and then collect interest off that interest, the faster and easier it will be for you to build wealth.
2. Be Open to Taking Risks
The bigger the risk, the greater the reward! While it certainly isn’t the right course of action for everyone, taking a financial risk every now and then can really give your wealth building strategy a boost. Of course, before you decide to invest in that volatile stock portfolio or help to back someone’s business idea, you need to make sure you’re in a place of relative financial stability and can afford the potential downside.
3. Uncover the Fun in Your Work
If you’re the type of person whose job is simply a means to justify an end, it can be difficult at times to really find the joy in your work. That lack of workplace happiness can make it hard to really succeed and could inhibit you from getting more work done or qualifying for a promotion. Try to discover something about your job that you really enjoy doing or, if possible, consider switching to a career path you think you’d enjoy more.
4. Nickel & Dime Yourself
Building wealth starts with saving more money, everybody knows that, but sometimes it can be difficult to find more ways to save. An easy and incredibly helpful way to put a little more away each month is to nickel and dime yourself. Round up all of your purchases and deposit the change into a savings account. You’ll be surprised at how much extra you’ve socked away at the end of the month.
5. Everything’s Negotiable
Whenever you look to make a big purchase (think cars or appliances) or renew a service (cable, phone, etc.) try to see how low the other side will go. You don’t even have to make yourself crazy trying to master the art of negotiation, just make a habit of asking for a lower price. Simply asking the question might just help you save hundreds (or even thousands!) of dollars on a purchase.
Warren Buffett didn’t become a billionaire overnight. When it comes to building wealth, a variety of factors come in to play, but none so important as patience. Providing you take your time, save consistently and stay on the lookout for more savings and investment opportunities, you’ll find yourself a wealthier person in no time.
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