For some people, learning new things is a cautionary journey to discovery. To make the disruption less painful, they take baby steps toward change. For others, the realization that change is necessary completely transforms their thinking and propels them into immediate action.
Where do you fall on the spectrum?
Wealth-building, for many people, is something that others do. They believe it is solely for those with a lot of money, not people who struggle each month to pay their bills. Once you realize that your life doesn’t have to be a week-to-week (or day-to-day) struggle, it can be one of those life-altering revelations that changes everything, from the way you think about money, the way you feel about your job and the work you do to earn money, and your relationships. Coming to terms with what you do with every cent that comes your way is the first step in building wealth.
The bottom line is that until you start saving and investing more than what you make, you will not begin to build wealth.
The good new is, you can start right now. It doesn’t matter how much or how little you earn. That is the beauty of money. It isn’t about how much you earn, what matters most is what you do with it. You can make $100,000 a year and spend every dollar, or you can earn $30,000 and invest $10,000. The person who keeps the most ends up with wealth.
Determine your goals for how you want to life your life. My goals are simple: create enough wealth that I can retire (if I choose) in 2021/22. I am doing this by maxing out all retirement accounts/tax deferred or tax-free options, like the HSA; living well below my means and funneling cash into investment accounts to buy income-producing rental properties. I plan to have enough rental units to replace my income by the time I can retire early. Your goals will be different, but make sure you know where you want to be and how you want to live. The details then becomes easier.
Once I figured out my goals, I skipped baby steps and made changes in quantum leaps. That’s my style. You can reach your goals your own way…slow, methodical steps or big, extreme changes. Whatever you do, please do something. If you continually feel anxious about money, paying bills and future uncertainty, this will help. Since I got my act together, I sleep better and never worry about how I will cover expenses or emergencies. Many people don’t start a wealth-building lifestyle because they don’t want to “lower” their standard of living. What they miss out on is the realization that “living on less, investing more” doesn’t make your current life worse, it exponentially makes it great.
This is your life and your one shot at living it on your own terms.
p.s. Check out the new NDQ Guide: 500 Tips the guide that will give you actionable steps to jump start your savings and investing immediately.
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