It’s easy to build wealth if you start using three modern approaches to managing your family finances.
However, most of people have chosen a completely different path for themselves and act “the old fashioned way”: they go to work every weekday and look forward to retirement.
In this article we will talk about 3 steps that are guaranteed to lead to wealth.
Check yourself — can you get rich or are you now doing everything possible to prevent this from happening?
Automate your behavior to become rich.
I have good news for you!
You already have everything you need to create sustainable financial wealth.
By and large, for this you need to purposefully move in 2 directions:
(1) Increase your assets and
(2) Reduce your debts and loans to a minimum.
The second good news is that the journey to wealth can be automated so that it goes “on autopilot” and does not take up your time and energy.
THREE STEPS TO BECOME RICH:
1) Use the power of compound interest
I’m more than sure that each of us has heard of “compound interest.”
But for one reason or another, I was never able to realize their incredible potential in my own financial life.
The classic definition of “compound interest” is interest calculated on both the original amount and the interest earned.
It sounds abstruse and incomprehensible.
But the effect is truly explosive, allowing you to create huge financial capital over time with negligible amounts.
WHAT TO DO: Unleash the magic of compound interest!
To do this, you will need very little — start regularly saving a certain amount (optionally, 10-20% of each income you receive).
2) Automate investments
Your money should “work” and not gather dust lying on a bank deposit.
Because there is such an extremely unpleasant thing called “inflation”, which every day reduces the purchasing power of money.
WHAT TO DO: Set up an auto-payment in your bank’s personal account, which will direct some of the salary you receive to investment.
A good option is to buy currencies and index funds.
This way you will beat inflation, protect yourself from national risks, and enable compound interest.
3) Periodically level-up your income
As you already understood, the first two steps will require only one thing from you — your money.
Therefore, increase your income in any way available to you!
This could be: advanced training, career growth, part-time work in your free time from your main job, various options for passive income, etc.