Did you know that the top one percent of the world's wealthiest people hold almost 50 percent of the world's total wealth? It's a staggering statistic, but it goes to show just how powerful wealth can be. Now, while money itself may not guarantee happiness, there's no denying that having financial security can bring a sense of stability and peace of mind.
So, are you ready to learn the secrets to building wealth? Today, I'm going to share with you the seven best ways to do just that. So grab a notebook or a pen because what I'm about to share with you is going to be invaluable.
Number one – build a great career. Pursuing a career you're passionate about can lead to higher levels of success and fulfillment. It can also result in fewer mistakes and better business decisions. It's all about finding something you love to do and making a living from it. You don't have to quit your job, but it's worth making a plan to make space for what you're passionate about.
Number two – have more than one source of income. Even if you have a well-paying job, it's always a good idea to consider the possibility of job loss or unforeseen circumstances. Starting a side hustle or freelance business can be a great way to generate extra income.
Number three – your most valuable asset is your time. Managing your time well is essential if you want to create wealth. Successful people know that they need to use their time wisely and focus on the activities that will generate the most income. It's important to prioritize your tasks and be organized.
Number four – change your mindset. Adopting a positive attitude towards money and keeping a watchful eye on your spending habits can help you break free from the traditional mold and develop a millionaire's mindset.
Number five – control your credit score. Having good credit can allow you to take out loans for investments in the future. Managing your credit well can also help you leverage credit cards to your advantage and build wealth.
Number six – create a realistic and flexible budget. Budgeting is like a roadmap for your money. You need a budget that's both realistic and flexible so you can adjust it as needed.
Number seven – have a mentor. Having a mentor by your side as you navigate the complex world of finance can make all the difference in achieving your financial goals.
One of the keys to success is controlling your credit. Why is that? Well, for starters, having good credit can allow you to take out loans for investments in the future. Whether it's investing in a new business venture, buying a rental property, or financing a new car, having access to credit can help you achieve your financial goals.
In addition to borrowing money, managing your credit well can also help you build wealth by leveraging credit cards to your advantage. Wealthy people understand the power of credit cards and use them to their benefit by taking advantage of rewards programs, free travel insurance, and other perks. By using credit cards responsibly, they can earn cash back, airline miles, and other incentives without paying a dime in interest. But good credit isn't just about using credit cards to your advantage. It's also about maintaining a good credit score which can help lower your cost to borrow in the future.
So what's the key to good credit management? Well, simply keeping your credit utilization rate below 30 percent. This means you shouldn't be using more than 30 percent of your available credit at any given time. By keeping your balances low, you'll show lenders that you're responsible with credit and can handle your finances effectively.
Number six is creating a realistic and flexible budget. Did you know that over 60 percent of people don't make a budget? That's a lot of people who might be overspending or not saving enough. But creating a budget doesn't have to be complicated. Think of it like a road map for your money. You need a budget that's both realistic and flexible so you can adjust it as needed.
First, calculate how much money you have coming in each month and then determine your fixed costs like rent, utilities, and insurance. These are expenses that tend to stay the same from month to month. Next, you'll need to think about expenses that can change from month to month like food or clothing. You can set a percentage of your income for these expenses and adjust it if you have more or less money.
A good way to start budgeting is by calculating how much money you make each month and deciding how much you want to spend in different categories like entertainment or savings. One popular method is the 50-30-20 rule, which means fifty percent of your income should go to needs like rent, thirty percent to fund things like dining out, and twenty percent to saving or paying off debt.
Remember, it's important to be flexible in your budget so you can handle unexpected expenses and it's helpful to use budgeting tools like apps to help you track your money. Establish an emergency fund to be prepared in case something unexpected happens. If you're looking for budgeting apps, some great options for beginners include Mint, You Need a Budget, Pocket Guard, and Good Budget.
Number seven is having a mentor. Having a mentor by your side as you navigate the complex world of finance can make all the difference in achieving your financial goals. According to a study by SunTrust Bank, individuals with a mentor report that they save more and have more financial confidence than those without a mentor.
For example, imagine you're a young professional just starting out in your career. You're interested in investing, but you're not quite sure where to start. A mentor who has years of experience in the finance industry could help you develop a solid investment strategy, guide you towards low-risk investment options, and help you avoid common investing pitfalls. In fact, research shows that 93 percent of startups that were mentored by successful entrepreneurs saw an increase in their success rate. This demonstrates the power of mentorship in all areas of wealth creation, including entrepreneurship.
Additionally, having a mentor can help you stay motivated and accountable as you work towards your financial goals. They can challenge you to think outside of the box and encourage you to take calculated risks to help you reach your goals. With their support and guidance, you can gain the confidence and knowledge needed to succeed in the financial world.
Thank you very much for watching this video. If you liked it, don't forget to share it with your friends or family and subscribe for more content like this. Take care and see you next time. Your buddy Myles Valentine.
