When you google “creating wealth” you’ll find a variety of articles, quotes, videos, etc. touting their version of the steps to wealth building. You’ll see the “8 keys to creating wealth” and “the 9 tools to building wealth”, “106 steps to wealth building” Well, maybe not that last one, but you get the point. While these pieces maybe good, they lack an essential component to creating wealth: What is wealth?
In order to truly reach your goals of creating wealth, you must first define what that looks like. Is wealth having a yacht in Southern France? Is it living in a quaint ranch house in the Colorado Rockies? Taking the kids or grand kids on meaningful vacations every year? Or perhaps having the freedom to spend most of your time doing what you love?
You see, in order to follow a map, you must first know your destination. Then, and only then, will you have a clear direction on how to create wealth.
Foundations of Creating Wealth:
While you’re sorting through your ideas of financial success, here are some basic wealth-building pillars:
Dump Debt.
One of your strongest wealth-creating tools is your income. Think about it: the average American household carries $130,000 in debt. If instead of paying payments each month you invested that money, you could be sipping mai-tais on the beach once you reached retirement rather than drinking water on a couch you’ve been paying on for 20 years.
Small Deals, Big Deals.
Once you’ve got your debt under control and you’re starting to build up a nest egg, invest it wisely. Start with smaller deals first that will help you grow your portfolio: precious metal IRAs, mutual funds, and/or small real estate deals, for example. As your returns pile up look for bigger deals that will yield larger returns: buy commercial real estate or purchase a business.
Slow Your Roll
One all to simple, yet ubiquitously ignored rule to creating wealth is to stop spending! Think about it, if you constantly upgrade your standard of living every time you make another buck, you won’t have anything to save, which means you won’t have anything to invest, which means you won’t have any extra income to make you’re goals a reality. Break out of the vicious rat race – save! It will give you the freedom to explore wealth-creating avenues.
Tip: save at least 15% of your income each month so that you’re ready to capitalize on big and small deals when the come around.
Your Map to Financial Success
At Landmark Capital, we can help you reach your financial goals so that you can relax on the boat, or in that house, or with those grand kids. Our experienced Advisors have created their own wealth and want to share their tips with you. Let us help you start the journey.