Stop searching on google how to be a millionaire. It wont happen over night. Not that way. There is not a magic secret or get rich quick scheme. So how can you build wealth? This is everyone’s dream. Build your own wealth, and travel around the world. Or just do what you ever want to do.
1 – Making money
It means you have to get started by having an income. Earn money. This is called, active income. And the money comes from derived investments is a passive income.
So what you need to figure out is how can you earn, save and invest to build step by step your wealth.
A- Consider, what you enjoy doing most. It might will take years to build your wealth so you must enjoy your journey.
B- Consider what you can do best. Have you got any skills or any talents that you think might help you make a living.
C- Consider what pays well. You need to match in the end that, you want to do what you enjoy doing using your skills and getting paid more money.
D- Consider how to get there. If you need a course or any education maybe you should get started by doing so.
2 – Saving money
Live within your means. Spend less money than you make. First make a budget. Figure out how much money you earning. What are the spending figures? What’s left. You can do so by using checkbook. It will help you keep your spending habits under control. But you still need food, need to pay the bills but save whatever you can. Start small. Get rid of what you don’t need. For example if you eating lunch every day out then may be you have to cut that and take your lunch from home.
3 – Investing
Saving is good for many reasons, but first you never know what’s around the corner. So having some money aside not only feels good but it really helps building up. I am not saying you will get rich by saving. But once you got some savings you should give serious thoughts on investing that money. Maybe you need financial advice, as most of people do.
What you need to consider is:
- What is the investment
What is an investment? Investments are something you buy or put money into to get a profitable return. It could be
- Cash (the saving you put into your bank)
- Bonds (you loan your money to a company or government for profit)
- Shares (you buy a stake in a company)
- Properties ( you invest in a physical building)
Returns are the profit you get from your investment. It could be paid in a number of different ways.
Yes there is a risk you might end up losing your money. But the fact of the matter is there is not such a thing as no – risk investment. You want to build wealth and to do that you have to take risks.
Knowing when and whereto invest.
This is crucial point. The timing when to invest. You still taking risks but whilst you want to see your money grow you decide where to invest and when to invest.