Our relationship with money often is based on a variety of factors: upbringing, educational level, self-discipline and ambition, to name a few.
For some, money equals security and comfort; for others, it means financial freedom and yet for others, it is an avenue to power. In order to embark on a course of wealth accumulation, you must first define what money means to you. Understand why you want to build wealth.
Is it because you want to be able to pay your bills on time, send your kids to college, start your own business, purchase a nice house, get into the stock market? Or are you interested in using wealth as a means to wield influence and affect the behavior of others? Once you know why you want the money, you need to determine how to get the money.
There are several methods of asset accumulation:
- Birth, inheritance or the lottery
- Real estate (property value appreciation, rental property and “flipping” property)
- Business creation
- Securities investment/stock market
A relatively small number of people accumulate wealth via method number one. Most of us earn our income via one or more of the other methods listed above.
Regardless of the method, there are some basic guideposts that you can follow to put yourself on the right course for asset accumulation.
- Consult with a qualified financial professional for guidance on how to achieve your financial goals, as needed.
- Sacrifice immediate gratification for long-term benefit. Instead of spending your bonus or the profit that you made on a deal, save or reinvest it.
- Identify daily, weekly, monthly and yearly goals, and give single-minded attention to achieving those goals. Short-and long-term goals will keep you focused in your approach.
- Envision the lifestyle that you want to lead, and develop a plan that will help you attain that lifestyle. Getting to your destination is always easier when you have a road map to follow.
- Form strategic business and social alliances; a well placed word or an introduction by a well-connected associate might put you on the fast track to achieving your wealth goals.
- Avoid toxic influences; negative people and situations can drain your energy, creativity and confidence and waste your valuable time.
- Make opportunities happen. Don’t wait for something to happen-make it happen.
- Seize upon unanticipated opportunities. Take advantage of the unexpected lucky breaks that come your way.
- Maintain confidence, and remain steadfast in the face of financial loss or downturn. What goes up must come down and what comes down will eventually go up again.
- Develop a solid support network. These are the people who will help you keep your eyes on the prize.
- Make adjustments to your plan, as needed. Flexibility is essential; you never know when an unexpected bump in the road will throw you off course. Be prepared to make the appropriate corrections and keep moving.
- Follow your passion, whatever it may be. For some, the journey on the road to wealth will be a quick and smooth one; for others, it will be fraught with challenges. Regardless, you must decide what you want, take aim at your target, and chart your course for wealth.
About the Author
Greg Washington is the owner of Financial Strategists, a business advisory firm located in Olympia Fields, IL . Contact him at 708-850-1386.