Hello I’m Brian Tracy and today I want to talk to you about starting with nothing, as most of us do, and becoming financially successful over the course of your lifetime. Building wealth is a journey. Like most journeys, the sooner you start, the further you’ll go. Therefore, whether you’re saving for retirement, to put your kids through college or to achieve any other goal, it’s important to start as early as possible.
So many factors affect your wealth and your ability to create it. You’ll need to begin by coming up with a clear detailed financial plan. The specific path you take will vary based on your ambitions, your family size and any other factors. Every plan for building wealth must contain these things.
Have a Goal to Increase Your Income
First you must have a goal to increase your income. You can’t save money unless you make money. The first step in building wealth is to earn a high income. This requires that you earn and you work more hours than the average person. The average person, they say, works a 40-hour week. If you take away lunch and coffee breaks and you take away chitchat and socializing the average person works about 16 to 18 hours a week. They waste or burn up most of the time. Successful people work an average of 59 hours a week and they work all the time they work.
Build Your Skills
Formal education is only part of the process of building skills. It is equally important to gain practical experience in your field. All that matters is your ability to get results. Only practical experience enables you to get results that people will pay you for. Begin working at an early age. Do as good a job as possible for every employer you work for. Remember Ralph Waldo Emerson said, “if you work for an ungrateful employer, work twice as hard”. You’re not working for, him you’re working to build the character you will need to be a great success later in life.
Even if you’re still in school, you may be able to gain work experience through an internship, a fellowship or a part-time job. Such opportunities are especially valuable if you can get course credit while pursuing them. Depending upon your ambitions and skills, founding a business may be a great investment in your long-term wealth. Almost all businesses are started at a kitchen table by one person, and sometimes two. Look at Apple. They started with Steve Jobs and Steve Wozniak. Look hewlett-packard, they started in a garage in Palo Alto. Look at Microsoft, it started with Bill Gates and and his partner. Most all of them were started by one or two people. While you lose money, in the short term, if you understand the industry and run your business well it will eventually become one of your greatest assets.
Knowledge and Skill
Knowledge and skill are the keys to your success. Most professionals see their incomes increase over time. Thus, if you can achieve high earnings at an early stage, you’re likely to make even more later on in your career.
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Save and Invest
You must be able to save and invest. As important as it is to earn large amounts of money, you can only build wealth if you can save a sizeable percentage of those earnings, like 10%, then 15%, then 20%. If your employer offers a 401k plan, maximize your contribution. Put as much money in as you possibly can, that they will match. Likewise, set up your paycheck to send a large portion of your money to your savings or investment accounts automatically. Automatic deductions can make you rich rather than giving you a chance to spend it first by taking the money and cashing the check.
The more your money goes to your savings and investments, the less of it you’ll think about spending. Unless you plan to move frequently, purchasing a home is one of the best ways to build wealth. You’ll have to pay for housing anyway, but unlike with renting, you’ll get your house payments back in the form of equity. There are also sizeable tax benefits to buying a home now. Interest on debts can consume a large portion of your income.
Get Out of Debt
It makes sense to pay off anything you owe as quickly as possible. One of the most important things you want to do is get out of debt. The only type of debt you want to have is debt that more than pays for itself. If you own a house or you have a mortgage, you have a debt on the mortgage. However, rental payments more than pay for the mortgage and give you a positive cash flow. This is the only kind of debt you want. The more quickly you pay down the principal, the less interest you will pay, reducing your total spending on debt service. Maximize the interest you earn on those savings. The higher the yield of your investments assets, the faster your money will grow compounding your savings over time.
Cut Wasteful Spending
As your income rises throughout your career, you’ll have the opportunity to devote an ever larger percentage of your money to savings and investment. This is provided that your spending doesn’t rise at the same time. It’s important to look for ways to save by improving insulation and investing in more sustainable technology for your home and car. You can reduce the amount of money you spend on electricity and gas.
Homeowners often pay for 1,000 channels but only end up watching four or five cable shows. Consider buying channels individually from your cable provider, the cost per channel may be higher but your total spending will be lower. Bulk purchases are cheaper in the long run, better than individual purchases. This is provided that you use everything that you buy. Almost everyone makes at least some wasteful purchases in their life. Be periodically evaluating your spending and looking for sources of savings you can then cut down on this waste and maximize the amount of money you keep.
Should you find yourself needing a cash loan in NZ along the way, you can get one from Kiwi Cash if you are employed or have income that enables you to repay your loan in a timely manner. Get one from Kiwi Cash today by clicking the apply button and submitting your application. You will receive a quick determination whether you qualify to receive a fast cash loan.
Brian Tracy is the most listened to audio author on personal and business success in the world today. His fast-moving talks and seminars on leadership, sales, managerial effectiveness and business strategy are loaded with powerful, proven ideas and strategies that people can immediately apply to get better results in every area.