In Sickness And In Wealth

In Sickness And In Wealth



For Starters

When asked to​ name an​ effective way of​ obtaining wealth, a​ common answer is: "Invest". What is​ the​ problem with this answer? Well, the​ majority of​ respondents have very little or​ no money in​ their savings account. I see the​ beginning of​ wealth building in​ a​ different light. a​ saying that almost everyone knows but nearly no one applies is: "A penny saved is​ a​ penny earned". in​ today's culture it​ is​ definitely much easier to​ spend money than it​ is​ to​ save it. the​ average American is​ exposed to​ 247 advertisements in​ one day! Less than 5% of​ Americans have at​ least $3000 in​ savings and​ no debt. it​ is​ no wonder that most consumers struggle with saving money or​ grasping the​ concept of​ building wealth. We are mentally flogged with television and​ radio commercials, newspaper and​ magazine ads, billboards, signs, posters and​ even conversations. Whatever the​ method, it​ all serves one main purpose - to​ take your money and​ make it​ theirs.



Unveiling the​ Mystery
So with all those statistics and​ all that advertising, how in​ the​ world is​ it​ possible to​ build wealth? Well consider yourself ahead of​ the​ game already. By reading this article you are opening your mind to​ ideas and​ concepts which could help you to​ begin the​ process which is​ more than can be said for​ most people out there. a​ house starts with a​ single brick and​ the​ same is​ true with wealth building. You have to​ start with what you can and​ keep adding to​ it.
Why not jump in​ to​ stocks, mutual funds or​ other investments right off the​ bat? Life will continue to​ happen whether you plan for​ it​ or​ not. So plan for​ it. You must start with a​ lump sum of​ money in​ your savings account which has been referred to​ as​ an​ "emergency savings". a​ good figure for​ this is​ $1000. You MUST pay your savings first, before anything else. if​ you do not, your savings will not grow (or it​ may not happen at​ all). This extra money will act as​ a​ soft landing for​ any financial falls that can and​ will occur while you pay down other debts that are road blocking your way to​ building wealth. You must realize though; this money is​ first priority but can not be touched - ONLY for​ emergencies. By following these 2 steps:
1) Stocking up your savings with $1,000 and​ then 2) Eliminating extra debts (with great fervor), you will prepare yourself for​ a​ much easier road to​ building wealth.



Making it​ Happen
You have to​ take action now or​ this whole savings thing will not happen. First, get a​ savings account. if​ you have one, find out what the​ interest rate is. Many have something like 0.25% to​ 1% (WHOOPEE!). Remember that you are not trying to​ make all your money in​ interest right now but since the​ money is going to​ sit you may as​ well look around. it​ is​ possible to​ land up to​ a​ 3-5% interest rate. Another option is​ a​ money market account to​ get a​ good rate although restrictions sometimes apply for​ things like early withdrawal fees and​ keeping a​ minimum amount in​ the​ account at​ all times. Secondly, as​ I stated earlier, take your savings off the​ top on payday. You have to​ make a​ painful change as​ well though. You may have to​ sacrifice some things to​ get that initial $1,000. This could mean no eating out or​ temporarily cutting out an​ expensive hobby. You also might want to​ try changing your phone company or​ downgrading your cable package. I hate this next idea but it​ is​ for​ a​ good cause: Drop your credit card payments below the​ minimum (JUST for​ NOW). Anyway, you get the​ idea. Cut some here - cut some there. Now, take all the​ figures you cut and​ add them together. This is​ what you will put in​ to​ your savings account until you reach $1,000. See, when the​ average person feels like they are getting ahead or​ even staying even, a​ setback occurs and​ sends everything spiraling downward. This is​ the​ hard part of​ building wealth and​ it​ is​ just the​ beginning (the first brick). However, without this extra money in​ savings you will tread water until you eventually drown, so stop thinking about it​ and​ start acting on it​ today.

The next step is​ paying off your debts quickly. an​ article which discusses this in​ detail is​ "Beating Debt with a​ Stick" and​ can be found at​ http://www.cleancreditonline.com/beating_debt.html.





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