Wealth Building

Here’s The Secret To Building Wealth. Be Patient.6 min read

Reading Time: 5 minutes It’s hard to not want wealth in a materialistic society. Intriguing, the key to building wealth is patience and discipline. Curious to know how? Read on to find out.

August 29, 2020 5 min read
Diversify Investments

Here’s The Secret To Building Wealth. Be Patient.6 min read

Reading Time: 5 minutes

Patience makes your money grow. You’ll be surprised to find out how much. Time is an essential ingredient to building wealth. The longer you hold your money, the more you’ll end up with. A patient individual can afford to wait. This discipline allows them to witness the bigger picture.

Patience leads you to go beyond “here and now” and find income streams of substance. After all, wealth is not limited to dollars and cents only. If you want to build wealth, you need to strategize. Your net worth isn’t built in a day.

Why We Recommend These Books

The Standard & Poor’s Guide to Long-term Investing: 7 Keys to Building Wealth by Joseph Tigue

If you’re curious to know how to tackle common financial issues then this book should be in your reading list. The book deals with a wide array of subjects that help improve your financial stability. The author doesn’t focus on technical terms and complicated mathematics to convey the importance of financial guidelines. He uses simplified terms and illustrated data to explain how one can create a sensible portfolio.

The book highlights various investment vehicles you can look into. It talks about the success rates of long-term investment strategies too. You learn how to make use of the money you earn without affecting your daily expenses. Someone on a small payroll may not be able to make large investments but can make smart choices. The book highlights how you can achieve diversification and invest in low-cost but promising mutual funds.

The author also ensures to address the common misconceptions people have regarding long-term investment strategies. If you’re a beginner who wants to learn the investing process then this is the book to help hone you.

Business Boutique: A Woman’s Guide for Making Money Doing What She Loves by Christy Wright

“There’s enough room for you too” and Christy Wright is on point. The Business Boutique empowers you to turn the ideas in your head into reality and earn some income from it in the process! Reading the book feels like you’re getting advice from an elder sister. The author pushes you to stop brushing off your desires, skills, or gifts as an afterthought.

Explore your unique offering and reap the benefits from it. The book simplifies the business intricacies and teaches you how to integrate things you love into the money-making process. It doesn’t matter if you’re selling something someone else is. You can too. Just do it with confidence.

You don’t have to choose between family and business. You can make both work. The book highlights how you can manage your time in a way that leaves you enough time to enjoy the life you want the way you want it.

Mantras You Need to Follow

Wealth Building

In order to accumulate wealth over time, you need to ingrain these steps in your mind. They may be basic but they’ll pay off in the long run.

1. Define

If you have no ambition in life and have no ideas on how you want your future to be, how will you make use of the money you have in your hands? Living in the moment doesn’t guarantee a stable future. Without a defined future, you can’t begin building your wealth. Do you want a good retired life? Do you want to live in a luxurious home? Devise a plan, develop it, and start building your wealth.

2. Earn

Earning money, passive or otherwise, is the first step to building wealth. In order to save or invest, you need to have a sufficient amount of money. That is, after you’re done purchasing your necessities, paying your bills and repaying your debts. Even small amounts saved every other month can compound into a large amount. You need to make sure you’re earning enough. If you think you’re not earning enough then you can consider investing.

3. Save

Once you start earning, you need to create a savings plan. To do that, find out if you’re saving enough to begin with. If you don’t have money to save after your current spending, it’s time to track your budget and control your splurging habits. Differentiate between wants and needs and focus on the needs more.

Don’t ignore your wants. Caving into laziness and ordering food rather than preparing it every week is easy. Cut that to twice a week and it’ll do wonders to your bank account.

4. Invest

Once you’ve started the saving process, you need to make some wise investment choices. This means going beyond the safe yet conventional savings account at your bank. If you want accumulated wealth, you need to go big and take some risks. Invest in securities that meet your criteria and budget. Don’t focus on a single line only. Use a diversified strategy so your risk is lowered.

Habits You Need to Let Go

Lose Wealth

Building wealth is a long game. You need to let go some unfavourable habits in the process.

1. “Saving” But Not Earning

This means you’re working hard, not smart. You won’t build wealth by just saving. You need to increase your earnings simultaneously too. Essentially stop worrying about running out money. Plan how to make more.

2. Buying Things You Can’t Afford

It’s easy to get tempted by luxurious goods. Owning them doesn’t mean you’re getting any richer though. Maybe you got an increased paycheck. It doesn’t mean you need an elevated lifestyle.

3. Being Content with Your Paycheck

Don’t be. Aim higher. If you want to build wealth, don’t limit yourself to a single stream of income. Get a passive income. Aim to get more projects done. Don’t be content with your hourly salary rate.

4. Ignoring Investments

The most effective way of earning money without too much work is investing! The earlier you begin to, the more wealth you’ll accumulate. You don’t even have to focus the stock market, just start with your retirement fund.

5. Spending First and Saving Later

Leftovers won’t cut it. Put yourself first. Keep a portion of your wage away in an emergency fund. Then pay your bills. This is a simple, slow but effective way of expanding your wealth.

Bottom Line

It’s the slow and steady who wins the race of wealth. It’s easy to let go of the idea of becoming rich when things don’t work your way. Just start. The money will follow.

Open a savings account at first. Make a few small investments before venturing into large ones. Believe that whatever decision you’re taking is the right one. Big or small, all decisions will pay off in time. It’s up to you to give these plans the time and patience to flourish.

Don’t get disheartened if an investment fails. Remember that building your wealth requires a penchant for risks. Set a financial goal. Clear out your debts. Work on your discipline. No one gets rich overnight. Not even millionaires gambling in the stock market. Patience is the key to building wealth. Trust in those words and your wealth will follow.

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