Building wealth is easier than you think. In all honestly, it requires attention to just four key principles. Independently, these elements all help you make progressive steps towards building wealth, however, when utilized in conjunction with one another, they become powerful drivers in developing, sustaining, and growing your wealth overtime.
1) Figure out what your means are - Then live below them.
One of the most fundamental attributes to growing your wealth lies in your day-to-day behaviors. Specifically, you need to make more money than you spend. Making more than you spend creates a surplus which can be utilized to help you save and invest to help grow your wealth overtime.
Signs you’re living beyond your means and are spending more money that you’re making:
· You live paycheck to pay check
· Your debt is growing
· You do not have an emergency fund
· You have little money in savings or have not been able to save
· You carry a credit card balance
· You aren’t or can’t save for retirement
Generally, small behavioral changes can get you back on track to ensure you’re living within your means, but if you continue to find yourself slipping further and further into debt overtime, consider whether large scale solutions are in order. Remember your financial future is much more important than that new shiny vehicle, fancy vacation, or designer blouse.
2) Decrease your floor
Another key attribute to growing wealth, shares a connection with the first item. You need to decrease your floor, or rather, the amount you’re spending. Decreasing your spending involves both reductions in things you knowingly spend your money on, but you can also decrease your floor by looking for money in unanticipated places. For example, many people find that when performing a financial audit, they are spending money each month on things they didn’t even know they were.
Breakthrough Innovations offers various resources to guide you through the process of performing your own internal financial audit. Click below to learn more.
Often times you can decrease the amount you are spending without giving up things you care about. Check our Breakthrough Innovation’s Financial Empowerment E-Book to learn how to give up nothing, gain everything, and accelerate your financial outcomes by changing your relationship with money and implementing sustainable processes for growing your wealth.
3) Increase your ceiling
Increasing your ceiling, or rather, increasing the amount of money you make, is one of the strongest but least talked about attributes to building wealth. Typically, financial gurus talk about everything you need to give up to build wealth, but they miss a fundamental component to wealth acquisition and that is the extent to which you can increase your preexisting income.
Some ways you can increase your income include but are not limited to:
· Starting a side gig or taking on a second job
· Investing in passive income streams
· Asking for a raise at work
· Looking for other job opportunities which are more lucrative
4) Be strategic
Living within your means, decreasing your spending, and increasing your income are three powerful ways to build wealth, but the reality is that you need to also be strategic with your money. One dollar can turn into one hundred dollars depending on which tool you place it in. Similarly, that one dollar can turn into fifty cents, and you can lose money overtime if you’re not strategic with your fiscal allocations.
The majority of Americans will not build wealth, that’s a fact. In order to build wealth, you need to do things that others aren’t. You need to look at strategic and intentional ways to decrease your floor, increase your ceiling, and consider strategic pathways to help you grow your wealth overtime.
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Breakthrough Innovations LLC