For many generations, we have been taught by our parents that the only way to succeed in life financially is to become savers. The financial timeline of life to wealth building has been to go to school to get good grades, get a job, buy a home, save money, be debt free and if possible with what is left invest in the share market or buy real estate. It is not our parent's fault that we have not yet succeeded as they were taught by their parents.
Wealth building starts with financial planning and financial planning begins with goal setting. Without a solid focus and a list of goals, you will never be able to accomplish what you'd like. The first step to wealth building is to come up with a list of goals and set priorities for each goal. You'll still be able to reach your most important goals if something unexpected happens. Goals should be very specific and quantified in numbers if possible..
Wisdom is knowledge and there is plenty of information available that will help you choose in what direction to invest. But is there too much knowledge available and does that detract from the overall goal of investing to make money.
If one of your goals is to have one million dollars of net worth by retirement one option is to put $300 a month into your 401k plan and choose S&P 500 stock market index fund. If you're 35 years old now and plan to retire at age of 65, you'll gave exactly one million dollars 30 years from now assuming the SP index repeat itself in performance at the rate of 10% return.
Before you can begin to build wealth you must understand the purpose or reasons as why you want to be wealthy. For some people building wealth can be a short term to buy a better home or car, for others it will be long term to set them up for retirement.
Are these people my only mentors? Let me explain. They were the most impacting in my life because they were the ones that guided me in my formative years; first as I grew up and then as I was a total neophyte of international business. Together, they formed my foundations to greater things in life.
Wealth building starts with financial planning and financial planning begins with goal setting. Without a solid focus and a list of goals, you will never be able to accomplish what you'd like. The first step to wealth building is to come up with a list of goals and set priorities for each goal. You'll still be able to reach your most important goals if something unexpected happens. Goals should be very specific and quantified in numbers if possible..
Wisdom is knowledge and there is plenty of information available that will help you choose in what direction to invest. But is there too much knowledge available and does that detract from the overall goal of investing to make money.
If one of your goals is to have one million dollars of net worth by retirement one option is to put $300 a month into your 401k plan and choose S&P 500 stock market index fund. If you're 35 years old now and plan to retire at age of 65, you'll gave exactly one million dollars 30 years from now assuming the SP index repeat itself in performance at the rate of 10% return.
Before you can begin to build wealth you must understand the purpose or reasons as why you want to be wealthy. For some people building wealth can be a short term to buy a better home or car, for others it will be long term to set them up for retirement.
Are these people my only mentors? Let me explain. They were the most impacting in my life because they were the ones that guided me in my formative years; first as I grew up and then as I was a total neophyte of international business. Together, they formed my foundations to greater things in life.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: An Individual Loan Can Bring You A Fortune Or Failure You have full permission to reprint this article provided this box is kept unchanged.
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