It’s no secret that most people would like to make more money. To be able to earn more, save more, give more and spend more is a dream that can often feel out of reach for those who don’t currently have the means to accomplish these goals.
What does feel like a secret, however, is how those who are building wealth successfully are doing it so well.
How is it that the wealthy seem to have it all figured out? What information do they have access to that others don’t? According to the financial experts of Kiplinger Advisor Collective, it’s really no secret at all — and it doesn’t have to be that difficult to start.
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By building habits like saving and investing consistently and maintaining the right mindset, you too can build wealth that can help you achieve your goals and give you peace of mind for the future. Read on to discover seven steps you can take today to get started.
Avoiding credit card interest
“Buying stuff you don't need and carrying a balance on a credit card will keep you from building wealth. Use a balance transfer card to wipe away interest fees so you can pay off debt faster. Then, start investing the money you were paying on your credit card toward income-producing assets such as dividend stocks, real estate investment trusts (REITs) or peer-to-peer lending platforms.” — Andrea Woroch, Woroch Media Inc. / Andrea Woroch
Making long-term investments
“The best-kept secret to building wealth is consistency in disciplined investing — regularly saving and investing in diversified, long-term assets like index funds or real estate. Most people don’t do this because they chase quick gains or struggle with delayed gratification. True wealth grows over decades, but many seek immediate results, missing out on the power of compound growth.” — Greg Welborn, First Financial Consulting
Owning income-producing assets
“Too many people trade time for money instead of buying back their time. The wealthy invest in things that make money while they sleep — businesses, real estate, stocks. The problem? Most people spend every dollar they earn instead of putting money to work. Shift your mindset: Buy assets, not just liabilities, and let your money start making money for you.” — Justin Brock, Bobby Brock Insurance
Saving consistently
“Saving a small amount each year can lead to the accumulation of significant assets. Investing $2,000 a year creates a nest egg of more than $200,000 at the end of 30 years, assuming stocks return 8% per year over that time.” — Daniel Kern, Nixon Peabody Trust Company
Sticking to what you know
“I've worked with wealth managers, but I find that the best way to build wealth is to simply be patient and invest in things you understand. Don't go after fads. Real estate has its advantages, but if interest rates remain high and rents fall, it may not be the golden egg people think it is. Stocks have their issues, too. Diversification is key, but only within limits, else you won't know what works.” — Zain Jaffer, Zain Ventures
Leveraging the right accounts
“Be certain to take advantage of dollar-cost averaging and diversification in tax-free accounts, like Roth IRAs and Roth accounts in employer-sponsored retirement plans. But the best-kept secret is consistency and patience.” — Marguerita Cheng, Blue Ocean Global Wealth
Keeping to a steady plan
“The secret? Consistency over time. Wealth isn’t built overnight — it’s daily habits, smart investing and patience. I’ve seen people chase trends, but those who stick to a steady plan always win. Why don’t more people do it? Because slow growth isn’t exciting. But the ones who stay the course wake up one day financially free, while others are still chasing shortcuts.” — Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
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Disclaimer
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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