Wealth isn’t something you wake up to one morning -- “Oh, guess what honey. We’re wealthy today!”
Wealth is built and earned over time. Carefully. Strategically. With deliberate purpose.
According to a Stanford University study, average American household wealth doubled between 1983 and 2010. But today, those in Gen X and Gen Y have accumulated less wealth than their parents did at that age over a quarter-century ago.
Their average wealth in 2010 was 7% below that of those in their 20s and 30s in 1983.
If building a healthy personal fortune is appealing to you, then here are some tips to help you on the wealth-building path:
Start with the end
Without a clearly stated end-goal, how can one expect to make it there? Luck maybe? Not likely though. Whether it's retirement, buying your dream home, or whatever your personal goals are, always consider the consequences of your financial decisions and how they contribute to the big picture, as well as the prize at the end of the wealth-building road.
Save the pennies, and the dollars take care of themselves. If you're going to become wealthy, you need to monitor all parts of your wealth. Be frugal but not foolish. Don’t spend an inordinate amount of time trying to save a penny, when you could be focusing your energy on earning a dollar somewhere else. Your wisest way to build wealth initially would be investing those hours in understanding investing and increasing your own financial literacy.
It adds up
There is no lottery ticket for most of us. In fact, you’re probably more likely to get in an accident on the way to buying a lottery ticket than actually winning. Slow and steady is the rule to wealth development. You may need to sacrifice a night on the town here and there, or frivolous and extravagant spending as you get there, but remember that some of the richest people in the world have accumulated wealth without flaunting it.
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
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