Wealth Building Tips
Building wealth is entirely under your own control, despite what some schools of thought will tell you. All it takes is smart decisions and breaking bad habits.
“Save a penny, and the dollars will save themselves,” is an approach that will add up over time. You'd be surprised to know that Americans waste money on a multitude of things.
USA Today listed 20 of the top ways recently. Chief among them were: wasted energy bills, daily coffee purchases, premium cable packages, traffic tickets, lottery ticket purchases, unused gym memberships, tobacco, alcohol, gambling, ATM fees, expensive (unneeded) warranties, credit card interest, and so on.
Some habits that are worth getting rid of:
1. Using out of network ATMs
2. Buying overpriced coffee every day
3. Using retirement money for extra cash
4. Not tracking your spending
5. Only paying your credit card minimum
If you were to break those habits, and combine that with a smart approach to saving and actually building wealth, you’d be well on your way to seeing a major shift in your financial life.
The term “wealth mentality” isn’t about standing in the mirror and meditating or visualizing large bundles of cash, although there is something to be said for nurturing a positive outlook in general. But here are some practical ways to turn those imaginary bundles of cash into real ones:
Whether you take 10% of any income, and put it straight into a savings account, or whether you have another method of saving, the point is that you are saving. Not everyone does this. In fact, nearly 60% of Americans don’t have enough savings to cover an unplanned expense. Savings add up over time, and the more you contribute to your “wealth vault,” the more your mentality will shift in that direction.
2. Spending habits
Buy things that you need vs. things that you want. This will go a long way to creating a proactive attitude when it comes to money. Frivolous or extravagant spending gets people into debt, which has disastrous long-term effects. Live within your means and also within your needs.
Reach for a realistic goal. For example, “I want to become debt-free this year,” or “I want to have $10,000 in a savings account by the end of this year.”
That gives you some practical and realistic goals you can plan and strategize toward. If you take the smaller steps, the larger steps will become easier and easier as you progress.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC
Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com
Connect With Us