SIX STEPS TO BUILDING WEALTH
BUILDING WEALTH by Chris Hogan
Every day , I work with clients around the country — musicians , entertainers , professional athletes , successful businesspeople — and one thing I always stress to them is wealth is a mindset and a lifestyle .
You can come into money quickly — a lot of people do that . But people who come into money without a plan lose that money as quickly as they made it . Just look at all the former athletes out there who go broke after retiring .
So what ’ s the real way to build wealth ? Live below your means . Your income is your number one wealth-building tool , no matter how much you make . If you ’ re living paycheck to paycheck , spending everything you make , then you ’ ll never get anywhere .
Make a plan . Write down a budget , each month , before the month begins . Have a goal in mind ? How long will it take you to get out of debt ? How long will it take to save up a $ 1,000 emergency fund ? Set deadlines and goals , and plan for results . Make sure what you ’ re doing with your money is matching what you have set as your goals !
Stop using credit cards . It ’ s all about the cash , baby ! Think green from now on . Think about how much you ’ re getting burned by credit card interest and burn up those cards forever . Make interest work for you , instead of letting it get you into deeper debt .
Build an emergency fund . You want quick access to cash . Life is going to happen — the flat tire , the leaky roof , the busted HVAC unit — and you want to be prepared when that happens . With an emergency fund , you can pay cash for these setbacks , instead of throwing down a credit card . And , remember , this is an emergency fund — so don ’ t let your wants get in the way of your needs !
Diversify . When you get around to investing , understand that spreading your assets out and having the right allocation is extremely important . Make sure you find an investment professional that you can trust to guide you through the process and answer any of your questions without talking over your head . And , no matter what , don ’ t listen to Uncle Earl and your broke friends . Use a professional .
Remember estate planning . This one is so easy to forget , but it ’ s unbelievably important ! Make sure you have a will in place , starting today ! Get on it . This isn ’ t complicated , and it ’ s not expensive . Not only that , but you also want term life insurance coverage of eight to ten times your annual income .
Remember , building wealth is not something you can do from watching a 30 second infomercial . It takes time , patience , and understanding how to do things the right way .
Trust me , you can do this . Start the process and you ’ ll be amazed at how quickly you build momentum and take control of your money . This is the real way to build wealth !
BLACK WORKING MAN 13