Building Wealth Rapidly

Once you are in a position of being financially free, only then can you realize the power of building wealth very rapidly. When you don’t have to put money towards other debts, but instead, can put that to an investment vehicle, you can compound your rate of return on savings and assets. The power of compounding interest should never be underestimated. In any case, building wealth is a lot more fun than paying debts for the rest of your life. For example, if you are able to put an extra $1,000 or even more to wealth building, instead of debt, you can really start seeing results. Your investment should also be well diversified. You don’t want all your eggs in one basket as my old Finance teacher used to say.

You should build Wealth even while in Debt
There should be no surprise that if you are in debt right now, you should also be building your personal wealth, little by little. Put away at least 10% in a safe account every time you produce income. If you cannot squeeze 10%, save 5% for the time being. As you knock off more debt, more income will become available to you in the way of freed up cash. You will have more disposable income per say. This is the time to start saving at least 10% for your own wealth. The secret to saving disposable income is to bank it right away or you’ll find a way to ‘dispose’ of it! A disciplined person with their finances can reap the rewards of saving cash especially in this recession. In a recession, cash is king. Everything around you is usually also on huge discount for investment, so work on stockpiling your cash or get a little leverage for an investment that may pay great dividends in the emergence out of a recession.

Hammer your Savings once Out of Debt
When you are completely out of debt, it is very possible to live on as little as 25% of your income every month (and some cases even less!). Think about it, if you don’t have that mortgage payment, car payment, credit card debt, misc. debts – how much further along would you be right now? Those that are Financially Free can afford to live a lifestyle that many others cannot, simply because they sacrificed earlier in their financial life to get where they need to go. If you are that disciplined, you too can reap the fruits of your reward later. When you are finally Financially Free, you can really put away a very sizable nest egg in no time because you can save and invest immensely without the worry of owing so much of your income to other non-essential expenses like debt.

If you start early, you can really get a grasp on wealth building early, you will be ahead of the game. Make your financial purpose to become financially free so that you can really build wealth like top earners. To your success! If you enjoyed this post, please feel free to comment or use the Share link below to re-post this link.

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Category: Financial freedom, Financially Elite Blog