Do you want to build wealth quickly? Well, it is not so simple but if you really want, you can do it. Here are 5 Ways to Build Wealth Quickly.
Starting is for sure the hardest part.
Initially, you’ll have a huge amount of information to absorb, so many books to read, so many different paths and ways you could follow.
So you need a detailed strategic plan, to organize your journey to financial freedom:
1) Pay off high-interest debt as soon as possible.
To build wealth, first, you must repay your debts. High-interest debt (basically anything above 6%/year) needs to be paid down right now.
Keeping, for the moment, a low-interest debt ( < 6%/ year) can be good if it frees up your hard-earned money to buy more assets.
Other high-interest debt must be absolutely cut down.
Consider it a real emergency, and you should do whatever it takes to get rid of them as soon as possible.
2) Establish an emergency fund for liquidity.
Don’t forget to put some money on the side.
Not necessarily a ton, but at least the equivalent of 6 months of expenses.
The statistics are simply alarming: 63% Of Americans Don’t Have Enough Savings To Cover A $500 Emergency
Life is hard and unpredictable, and Murphy’s Law remembers us that “whatever can go wrong, will go wrong.” : a car breakdown, a medical issue, or a variety of other unforeseeable things, and you need to have a good stash of money to react immediately.
3) Stop buying useless stuff.
I believe in the beauty of minimalism.
If you are living paycheck to paycheck, but are still happy to spend all of your hard-earned money on luxuries, cars, jewelry, shoes, or Luis Vuitton bags, then let me say that you have a big problem
Adopt frugality and minimalism as a lifestyle can be very unsatisfying if you focus only on what you lack.
Minimizing your possessions, get rid of useless stuff, and spending your life energy on what really is important to you, can be incredibly satisfying.
The next time you want to impulsively buy your new iPhone, just think of how much of your time and life energy you need to spend in your sh*tt* cubicle at work.
4) Look for higher income streams.
How can you do that?
If you really want to build wealth, you have 3 choices:
- 1. Focus on your career, become an expert, ask for a raise, or look for a better-paid job.
- 2. Do a side-hustle. ( e.g. Start a Dropshipping Business, Freelancing, Become an Affiliate Marketer, launch a Print on Demand Store, Start Blogging, Sell Information Products, Become an Instagram Influencer, Become a Virtual Assistant).
- 3. Start a business.
Focusing on your career means spending time and money on constant training. You’re gonna make a great effort to be a top-performer in your field. This is the route of lawyers, engineers, and doctors.
It’s really hard to do a side hustle because your job needs time, focus, and absolute concentration.
If you want to do a side hustle, maybe your job is not so good and glamorous.
Maybe you haven’t a college degree, but you have extra time to do what you want. So let’s become a freelancer, tutor, dog-sitter, programmer, etc.
We live in the Internet Age, and there are so many ways to earn money.
The third way is the toughest: you have to quit your main job and decide to start a business.
The payoff could be huge, but the risk is high.
It depends only on you.
You have to choose one of these three options, to get rich over time.
The only mistake you can do is avoiding all these three options and continue working for your boss restrained in your cubicle for 40 hours a week, without a side hustle, and not doing any business.
You won’t find any millionaire who works 40 hours a week.
5) Start Investing.
Build wealth paying yourself first.
For each paycheck you got, your priority must be putting more than 30% of it into your investment account before you spend it on your smartphone or a new pair of Prada shoes.
- Put at least 30 % of each paycheck into your 401(k).
- Max out your Roth IRA each year.
- If possible, put also your remaining money in your 401 (k), or in another taxable account.
- If you can save and invest at least 30% of your annual income, things will change very quickly and you will start to see your wealth grow and take benefit from the compound interest.
If you can also automate this process… Well done my friend, you are on the right way to financial independence.