The best way to build wealth is to deserve it. In other words, this blog entry isn’t about any get rich quick ideas. The best wealth is created by people who bring value to their own lives through hard work, strategy and the ability to stick to a plan to build wealth in the ways we know work:
Steady savings is not optional if you want to build wealth. You must commit to building in steady savings in every paycheck you get. We tell people to focus on the percentage of after-tax income you are putting to savings. How much – by percentage – of each paycheck are you putting to work for your family?
Constantly work to increase the percentage of your after-tax paycheck going to savings every two weeks or every month.
Be realistic about money. Money is slippery. Treat it with respect and know that only putting money to work over a period of decades will truly help you super-achieve real wealth.
Build the proper emergency fund for today’s world. You should work to build 15 to 18 months of expenses in emergency savings (money market savings and certificates of deposit). This amount will build a lot faster than most people think…if you start and stay committed to steady and regular savings. You can check out our “1% Savings Plan” in previous blog entries or you can get it at http://www.MiddleClassMoney.com.
Purchase assets that build upon themselves. A good example would be dividend producing stocks or mutual funds that grow simply because you own them (this is not to say the value of the stocks or mutual funds go up; it simply points out that dividends purchase more of the source element or stocks). We call this building an Asset Train. Trains go places. By reinvesting dividends, your “train” will go places, too.
Pay down debt. Debt is the #1 killer of wealth in the middle class. If you have it, work to reduce it. Negotiate with your lenders on interest rates (especially credit card companies). Work to control, reduce and eliminate debt.
Stay away from credit card debt. This is special debt. Treat credit card companies as the enemy of your family because they are. Control, reduce and eliminate.
We live in a society where many feel they are entitled. Others feel fear. Working with your own family members, you can teach, learn and grow wealth for you and your children over time.
Start. Begin. Commit. Stay the course once you have set strategy. When others tell you that you can’t, re-commit to growing your wealth over time. As the old song says, “Teach your children well…..”
You can do this.
HELPING YOUR KIDS GET AHEAD
If you think I was born saving money, you are wrong. My own family didn’t believe in saving. They don’t believe in having a 401k. They have had “emergencies” all their lives. These emergencies always get in the way of saving money regularly. I was not brought up to save and invest regularly and I have made every mistake you can think about when it comes to money. My parents thought they were shielding me from the realities of bills and worry. In fact, they were isolating me. I learned nothing until I had made many of the mistakes they made. I have had to learn the absolute hard way how to get savings on track and make it a part of your life without killing your lifestyle. I have had to learn the hard way how companies mislead with marketing. It is my mission to share what I have learned about regularly saving with my own children and also share it with you. That’s why we have a lot of “free” (blogs like http://www.boostmywealth.wordpress.com and http://www.stickyasset.com/blog and groups on Facebook like “Coupons & Coupon Codes”)!
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!
Connect with us on Facebook with these free groups:
“Coupons & Coupon Codes”
“Live The Lifestyle Your Family Deserves”
“The Money Store”
All on Facebook – join. It’s free.