It’s quite overwhelming to aim high when building your wealth. Sure $1,000,000 sounds great, but is it a reasonable mark? Setting a smaller goal does not necessarily mean you are capping your financial success. It actually sets you up for a higher chance of achieving the goal and give you the foundation you need to build wealth.
Here are 10 ways to build on $10,000 for your starting capital.
Change Your Perception
Everyone knows that a fat paycheck can get severely trimmed down once taxes and monthly bills are deducted. This turns the idea of having to save for retirement like an almost impossible feat. However, to build wealth, one must change his/her perception, particularly on how to spend their net income.
Imagine The Finish Line
Just as sports athletes imagine themselves making the shot repeatedly, investors should know how they want their money to perform. Financial experts recommend having a 5-year plan, where you produce specific money goals you’d like to achieve in a 5-year period.
Establish Personal Mind Tricks
Humans are born consumers hence when faced with the decision to buy a $1,000 designer purse rather than tuck the money in for rainy days, they usually falter and choose poorly. Fortunately, it is possible to overcome this behavioral pattern. Creating rule-of-thumb techniques can help simplify the many choices people have to make everyday.
Act Like a Rich Person
To become rich, a rookie investor must start acting like one. For some, the thought of a millionaire summons visions of high-rise mansions and car collections. However, most millionaires will tell you that they don’t live large like that. In fact, many rich people stay rich by living a frugal lifestyle.
Plan For Retirement Now
If you’re only on your twenties or thirties, retirement is likely not on your list of priorities. Indeed it is understandable not to have a single dime invested on your retirement nest at such early ages as you try to juggle your humble paycheck in between paying for college, weddings, your first car and home, etc. Unfortunately, the later you start, the more you’ll have to save.
Know Your Income & Expenses
You probably have the best intentions when trying to build your first real block of wealth. But if you don’t know how much your bank account receives and how much goes out per month or year, you won’t be able to formulate realistic goals.
You can’t totally avoid debt. Everyone will have debt at some point in their lives. However, a bad debt is something you should try to evade as they have the tendency to become rooted and grow out of proportion.
Increase Your Income
There are two ways to build wealth – spend less or save more. Spending less, however, is not enough. You must be able to save the money you don’t spend and then reinvest it so that it grows and beats inflation. Ask for a raise at your current job or look for easy part-time work.
Ask For Professional Help
Consultation services cost money, but there are situations where they pay you back threefold. Seeking financial guidance from a professional can streamline your money-saving habits without having to limit your lifestyle options.
Involve People Around You
In order for these wealth building techniques to become habits, you must surround yourself with people who understand what you are doing otherwise they may throw you off the path you’ve decided to take.