- May 10, 2021
- Posted by: calldcurry
- Categories: Blog, insurance, wealth building
Wealth creation is like reaching the top of a hard mountain. With innovative methods and a shift in wealth-generating mindset, the once-hard trek to the top becomes a fair trip with paved roads, an overnight lodge, and some barbeque. Learning the right wealth creation strategies will make tall orders turn into silly hurdles.
People mistake that creating wealth is a trivial matter; wrongly assuming that a few wise investments and a lot of hard work will make them happy campers. However, after retirement, they find themselves going back to work not because they want too, but because they have too. People thereby tend to underestimate the journey of creating wealth.
Wealth creation is not a random exercise. If you’re looking for a magic wealth secret, I’m going to disappoint you. Using the analogy of a plant, we do not expect a beautiful plant to bloom as soon as you start throwing the seeds in your garden. Like plants, wealth and money should be patiently groomed, trimmed, and carefully guarded. Therefore having the correct method to grow money involves having proven foresight of wealth creation strategies.
I’ve listed 5 strategies that will help you build wealth and begin creating the life you want
Strategy 1 – Wealth Creation Mindset
What is your deepest reason for building wealth or becoming debt-free?
Having the correct wealth creation strategies is only 20% of the puzzle. The bulky 80% starts with having the right mindset. Having the right mindset governs an individual’s actions to orient them to act and think as a wealth builder. This way, you can grasp the different wealth creation strategies today and even devise your strategy for your advantage.
Finding wealth creation opportunities does not rely on the best wealth creation strategies. Instead, opportunities are found by people with the mindset to create opportunities. Thus, the primary strategy in creating wealth is to develop a successful mindset. The faster that we change our mindset, the faster we can create what we want.
Strategy 2 – Make a Plan to Pay off Your Debt
Your most valuable wealth-building tool is your income. Every dollar you put towards your debt increases your net worth and it’s a process that you control. You control how much you put towards your debt, at whatever rate you choose.
So, here’s what you need to do…
Evaluate your current financial standing and create a plan with a timeline. You don’t have to put your entire check toward your debt, but putting $10 here, or $20 extra towards the interest in addition to the minimum payment all adds up. When you are free of debt, you have created a solid foundation to build your wealth. Remember, you have control of your debt freedom.
Strategy 3 – Incorporate Term and Permanent Life Insurance
In strategy 1, you created your vision. You answered the big question as to why you are building wealth. Now that you are on this wealth-building journey, you have to prepare for tomorrow, because you do not control it.
You have to be proactive.
With life insurance, you are establishing generational wealth, so that your vision can continue through your children and grandchildren well after you are gone. And to the stay-at-home parents, you need to think about life insurance as well.
Strategy 4 – Entrepreneurship
Since the pandemic, we all have realized we can not rely on a 9-5 to sustain us. We need to create “side hustles” or other streams of income to bring into the house. It doesn’t have to be extravagant. Take a look at the talents you have now. If you like to craft, you can start selling items on an eCommerce platform. You enjoy writing, you can become a content writer for social media. These are simple means to make additional income.
Another benefit to entrepreneurship is the ability to keep more of your money. When you have a business, full-time or home-based, there are certain tax write-off privileges.
Strategy 5 – Real Estate
This is by far, the historic way current millionaires or billionaires make their money. More people have increased their net worth over history through real estate. He who owns the land has the power. There are so many ways to invest in real estate and I can write an entire post dedicated to real estate. But this is where your tenacity comes in. For you to grow, you need to learn. I leave this for you to research various avenues related to real estate because your personality or goals will determine which way you go.
Not only do you work, but your money needs to work as well.