10 Steps Toward Wealth for Beginners
By Floyd Saunders, The Author of Five Paths To Wealth, Family Financial Freedom and Figuring Out Wall Street.
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Starting out? Just Follow These Ten Steps To Be A Path Toward Wealth
1. Personal Development Will Increase Your Earning Potential
Get an education. Go to college. Take online courses, read books. College graduates on average earn more income and have more opportunities to earn more money than most people who don’t go to college. That increased earning potential will payoff if you start investing 10 - 15 percent of your monthly income.
2. The First Rule of Investing is to Pay Yourself First
When you start paying yourself first, you are getting on a path toward wealth. Set aside the first 10 to 15 % of your income for savings and investing. If you can’t start with 10%, start with 1% and build from there.
Automate your savings and investing to avoid the temptation of spending it. You can’t take advantage of compounding returns until you start investing. If your employer has a 401k use it.
May you can only start with 50 dollars a month. Hey its a start!
3. Understand The Risks You Take
Every successful entrepreneur and investor learns to
take calculated risks.
When you starting out as an investor, start with broad market passive ETFs to create a core portfolio and expand from there.
You can reduce your risk by using dollar-cost averaging to buy into an ETF. It will help to reduce your risks of overpaying and average your costs.
4. Wealthy People Build Multiple Streams of Income
You get wealthy by having more than one stream of income. Start building your income streams with side hustles that will one day provide passive income for your family. It does take work to get started, so start with whatever you are passionate about. But Just Start! Every dollar invested will build your wealth over time.
5. Develop Your Wealth Mindset
Surround yourself with people with a wealth mindset. Learn how to think about and mange your money. Use positive affirmations about building wealth and practice saying those to yourself every day. When you think wealthy. You become wealthy. BTW, wealthy people can do more good in the world than people without wealth.
One way of developing a wealth mindset is to read, Millionaire Mindset by Paul Stanley.
6. Never Stop Learning.
Read books about successful people, about investing and anything that interests you, take classes (online or in person). Find mentors, and always be learning from others who are learning how to be wealthy. Being broke is unfortunate, but being stupid is a whole lot worse. Create a plan to always be learning and growing.
7. Stop Wasting Your Money
Most millionaires are the family next door, who learned to live below there means, so they have money to build for future. The future will not take care of itself. You have to do this. Start putting your money to work and realize the value of the dollars you have working so hard to earn.
8. Your Money Can Be Made to Work Harder Than You Do
Don’t try to time the Markets, It’s Time in The Markets that will make you wealthy. Develop a long-term strategy, and stick with it. Compounding of returns is an investing approach that never sleeps. Soon you start seeing those reinvested dividends growing and those passive income streams paying you money with you doing more to make it happen.
9. Pick Quality Dividend Paying Stocks
Buy and hold in your core portfolio quality dividend stocks that pay out increasing dividends every year. Some stocks have been paying dividends for a 100 years or more. Only sell quality stocks when the fundamentals have changed. Establish holding periods, of five to ten years. Sell if the dividend is cut. This will lead to wealth.
10. Reinvest Dividends May Be The Best Investing Secret You Will Learn
Reinvesting dividends is playing with house money. It’s the secret of compounding returns. When you understand compound interest and applies it to you investment strategy who are building generational wealth.
You can learn more about investing and managing your money to be more financial secure by reading Five Paths to Wealth. Read reviews at GoodReads.
Other books by Floyd Saunders include Family Financial Freedom and Figuring Out Wall Street.
You can learn more about him at his author web site.
Floyd spent his career working across the financial services industry. He is former banker, financial planner, tax preparer, insurance agent and information technology manager, working at Bank of America, JPMorgan Chase, H & R Block, Transamerica and Security Benefits. He also the founder of Really Simple Investing and the CEO of Saunders Learning Group.
Book cover design by Ashley Dameron