You asked for financial guidance, financial advisors and founders of Emeritus Wealth Group, Michael Soroko and Zach Zenda are providing it.
Building wealth is a hot topic amongst Americans these days. From get-rich-quick schemes to the explosive investing craze, everyone wants to know how to grow their money while living a productive life.
If this is you, here are 8 ways you can start to build wealth before 2021 comes to a close:
The best thing you can do for yourself is to gather reputable resources and learn how to save, budget, and invest. Becoming financially literate is essential for maintaining good financial habits and sticking to your long-term goals.
Have an accountability partner
Accountability is hard to practice by yourself. That’s why having an accountability partner by your side will benefit you. Whether it is a financial advisor, your spouse, or your wealth manager, these people can keep you on track when the last thing you want to think about is money. Your accountability partner’s sole job is to remind you of your long-term financial goals. In the end, you’ll thank them.
Create an emergency savings fund
You should always put a portion of your paycheck toward an emergency savings fund. This fund is a separate bank account where you should set aside money for large or unexpected expenses.
While you want to have a buffer for emergencies, don’t go overboard. There’s more money sitting in cash and money markets than ever before. To put it simply, money in motion is the key to long-term wealth-building; allowing cash to sit in the bank does not make you rich. So put aside money for your emergency fund and other important bills, and then invest the rest.
Eliminate high-interest debt
Carrying student loans and a mortgage can be considered good debt, but high interest and unnecessary debt can get you into trouble (i.e., credit cards, personal loans).
Be sure to prioritize paying off (and paying on time) that bad debt.
Create monthly and annual savings goals
Building wealth is like learning a new skill. You set a goal for yourself and then you take action steps to achieve it. Setting financial targets is essential to building wealth.
Here’s a tip: save 40% of your gross income! Yes, you heard that right. 40% is the ultimate goal! If you make $5,000/month, $2,000 should go toward some sort of investment/saving strategy for your future. If 40% is out of reach, then start with a smaller amount and build up to that milestone over time.