Interest and finance charges lead to getting discouraged about your overall financial situation. All of these problems occur once you let yourself fall behind on your payments. Whether it’s normal monthly bills, credit cards, or student loan payments, falling behind on your payments can be a difficult problem to dig yourself out of. The more money you sepnd on finance charges, the less money you have to invest in your future.
If you don’t know where you are headed, how on earth do you get there? In order to begin building wealth, you need a roadmap. Write out your goals, very specifically, including a way to achieve them, and you’ll be on your way to wealth building.
The greatest thing you can do for yourself is to start early. Even if you can’t invest much, start with what you can (even $5 per week) and let your money begin to grow.
Whether you are looking to invest in real estate, stocks, or gold and silver, make sure you know how the investment works from top to bottom. If you don’t understand the company's business model, what the company actually does on a day to day basis, or how it generates revenue, then do not invest a single penny in it. This principle should be heede at all times and applied to all the different types of investing.
When everyone is talking about an investment, that is generally when the smartest investors are getting out of their position. If everybody understands a stock is hot, or that the real estate market is booming, it generally indicates an economic bubble. In other words, it is time to cash out. Investors make money buying low and selling high. If an investment is already hot and lots of money is flowing into it, you aren't buying low.
Don’t get greedy with your money. This is easier said then done, but don’t try to be a hero with your investments and take on too much risk. Building wealth takes time and dedication to your craft. There are no shortcuts or easy ways to get rich.
This is one technique that sounds really basic, but can be really difficult to achieve. Most people want instant gratification and go out to treat themselves on a regular basis. Before you start spending that money burning a hole in your pocket, try to save 30% of it. Split your 30% between charity, church tithes, emergency fund savings, and other investment goals.