5 Things You Need To Know About Money While Waiting For Your Next Get-Rich-Quick Scheme

So, you missed the crypto train? Don’t fret. The jury is still out as to where that train is heading. I am sure there will always be another ‘gold rush” — or ‘opportunity of a lifetime.” Something different yet still the same.

But, if you’ve missed the last ‘opportunity,’ here are five time-tested, proven ways to build real wealth, much like billionaire financier Warren Buffet. The kind of wealth that is not fleeting that you can pass on for generations to come.

1. Enjoy Today And Plan For Tomorrow

Write a list of your three, five, and ten-year financial goals. It could be to pay off debt, put a down payment on a new home or launch a business. Decide when you’d like to accomplish these.

A study by the Harvard School of Business found that you have a higher chance of achieving your goals if you write them down. So, ensure you write your goals down. And create a plan for how you’re going to achieve those goals.

2. If You Can’t Pay For It, Don’t Get It.

Carrying debt robs you of a stable financial future. Almost half of Americans have a balance on their credit card. If money provides you with freedom, debt restricts your options of doing what you want to do.

There are one of two ways to eliminate debt. You can start by paying the loan or credit card with the highest interest rate. Or you can pay the loan or credit with the smallest balance owing, which has a snowball effect.

Eliminating debt one loan at a time — allows you to achieve small wins. Small wins give you a sense of satisfaction, creating momentum to tackle other debt.

The danger to paying off debt is racking it up again. Keep two credit cards and cut the rest. With an emergency fund in place, you should not have any reason to rack up debt caused by unplanned events.

If you need to replace your furniture or buy a new car, try saving for these instead of getting a loan, unless it is an interest-free loan.

3. A Portion of Everything You Earn Is Yours To Keep

Self-care in finances starts with paying yourself first.

Start by saving $1,000 in an emergency fund savings account that you only use in dire circumstances., like a leaky roof or car repairs.

Increase your emergency reserve to an equivalent three-month income as you get comfortable saving. So, you’re saving for unfortunate events. Such as job loss or sickness that may keep you out of work for a while.

A survey conducted by Schwab found that 36% of Millennials don’t have any money set aside for an unexpected expense. The habit of saving is the first step to feeling a sense of financial freedom.

Keep track of your expenses and stick to a realistic budget. You can keep track of your costs using apps such as mint.

4. Investing In Assets Is Sexy

Add additional savings into an investment account once you’ve got enough set aside for a rainy day. You don’t get rich by savings but by investing.

Invest in assets that increase in value over time. Assets such as real estate, stocks, and bonds.

Open an investment account and make a monthly contribution to this account. If you’re new to the world of investing, seek the advice of a licensed financial advisor.

The stock market is not a gambling den or casino. Research and buy the stocks of stable, large companies. Remember that your investment is meant for the long-term. You can start by purchasing Index or exchange-traded funds. With compounding, your money will grow substantially more than what you contributed.

If you’re young, time is on your side!

5. Start a side-hustle

Billionaire financier Warren Buffett says, “If you don’t find ways to make money while you’re asleep, you’ll work till you die.” And no one wants to work at something they don’t enjoy till they die.

Do you have a passion or skill that you know and enjoy? Why not teach it online? Share your expertise through YouTube videos. Thinkific and Udemy are great platforms to upload your lessons. Or start writing on blogging platforms such as Medium.com.

It takes time to create these, but once you’ve created and uploaded them, you will earn passive income through visitors to your site. Learn all you can about optimizing your site and promoting it through social media.

Bringing It All Together

Having money gives you the freedom to do some of the things you enjoy. Like travel, attending a hockey game with your son, or starting your own business.

Building wealth is easy, but it does require determination, focus, and intention. Take three or four actionable steps today to make it happen.

Open online savings or investment accounts, book an appointment with a financial advisor, start writing on Medium.com, or teach on Udemy. Whatever it is, start now!

People with a high net worth are not necessarily those with high incomes. High net worth individuals are people who…

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