Wealth building is quite different from surviving or simply earning a living.
It is different from a steady source of income that your time and energy revolve around.
Great wealth has not been acquired from earning a salary, the wealthy do not have regular Friday night spending sprees or swipe their credit or debit cards however and whenever the mood strikes.
People who have generated wealth for themselves have been able to do this over time by ensuring they have multiple streams of income, investments, and proper money management.
Multiple Streams of Income – Businesses
As mentioned earlier, the one percent do not become wealthy from one source of income.
One source of income is not enough to take you beyond your regular living expenses and that come with supporting a family.
What would happen if that single source of income went away?
In this economy, anything can happen. You would then find yourself frantically searching for a replacement when, in fact, having more than one source of income is a safe way to build security.
Regardless of how bad the economy is, you will always have assets to support you. This gives you a safe place to land in case of an unpredictable financial event.
Having more than one source of income leaves you with more money to save and add to your investments for your future.
One of the best ways to have multiple sources of income that you can control is to build your own business. Even while you have a regular 9 to 5, having your own business allows you to generate additional income.
Investing is the second step towards growing your wealth.
In as much as you have businesses that make you money and you are probably putting some money away into a savings account, this is great, but you also need to invest some of your money.
When it comes to investments and wealth generation, you must do more than saving alone.
You need to make smart investment choices if you want to grow your portfolio into something sizable and worthwhile. To start you should consider investing in stocks and bonds.
This no longer requires an investment manager or a financial advisor. Thanks to technology advances you can use phone applications to trade stock and read about financial information.
Diversify in your investments
Do not play it safe and stick to only one type of investment, create range in your portfolio by investing in stocks, bonds and real estate.
Diversifying helps to ensure you have a balanced portfolio. This will lower your chances of having a portfolio full of risky investments.
Manage Your Money Properly
Money management can be difficult to improve on. There are bills, expenses and things that we presumably need and simply must have.
Naturally, we all have wants and needs, the idea behind managing your money properly is to identify what your needs are, sort them out, and sacrifice your immediate wants for a better future. Money management would include things like budgeting, saving, investing, etc. All of these aspects help to make sure that you are living within your means and that you have something stored away for the unpredictable future.
Building wealth is not rocket science; it simply takes financial knowledge, skill, and discipline to successfully execute these practices.