fbpx
U

5 Ways to Build Wealth (and live a happier life)

September 2, 2016

5 Ways to Build Wealth Money Guy Show

Financial security and stability is something that most people want. It’s also something that most people aren’t entirely sure they have. 

According to GoBanking Rates, 62% of Americans have less than $1,000 saved in their bank account. The Federal Reserve Board reports that as many as 47% of Americans wouldn’t be able to cover a $400 emergency without borrowing money or selling something.  These are some startling statistics that reveal Americans today are not successfully building wealth for their future.

So what can we do? What can be learned from past financial mistakes or missteps so that you are able to build wealth for your future? Regardless of your financial circumstances today or how old you are, there are five important ways you can start or resume building wealth. And the best part: you may even live a happier life in the process.

Here are five big tips to start building wealth and never stop.

1. Defer Gratification

Yes, defer gratification so that you can build wealth. When you stop yourself from purchasing everything you want right when you want it, you become more selective about your spending. This behavior allows you to give yourself a “cooling off period” so you can determine if it’s a purchase you really want, as well as save up the money until you can afford that item in full at the time of purchase. Even if you want something, it is always a good idea to step back and consider if it really makes sense financially. “Live like no one else, so you can live like no one else in the future.” – Dave Ramsay

2. Look For Big Opportunities in Dark Moments

“Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffet  What this means is to buy low and sell high. Really, it’s most valuable to simply be aware of your own human behavior in these economic moments. How are you invested? We recommend that you save 15-20% of your gross wages going toward the future and live debt free. Beyond this, it’s putting yourself in the position to ride out economic turmoil without panicking and taking advantage of dislocations in the market. Working with a financial advisor on what this looks like for you can help you see and seize opportunity in such moments.

3. Invest in Yourself

It takes five years or 10,000 hours to master something. We encourage that you learn as much as you can so you can better yourself in the future. Avoid the get rich quick schemes. Instead, learn and hone a marketable skill set so you can potentially earn a higher wage and set yourself up for long-term income growth. When it comes to your finances, long-term is your friend. Just as a financial strategy grows and builds wealth over time, so too does your income when you learn and grow your own discipline.

4. Make Best Use of Your Time

Make sure the things you are spending your time on are really making the best use of your time. It can be too easy to get busy doing nothing. When you consider how you spend your time in any given day, are you spending it in ways that align with your passions and interests? Living a life that makes the best use of your time can have a powerful impact on your ability to build wealth. This is because you focus on the things that make you happy and remain steadfast in your desire to increase these opportunities. Whether it’s taking a family vacation or enjoying a hobby, traveling someplace new or even learning a new skill. Whatever it is for you, we encourage you to protect your time and spend it in ways that are truly fulfilling. Wealth comes in different forms and extends beyond money to other areas of your life that matter most to you.

5. Don’t Be in a Hurry

Lastly, try to not be in such a hurry that you don’t enjoy each moment of your life. It can be easy to fix on the future and the next thing you’re trying to accomplish and miss the fulfilling and rewarding moments happening right now in the present. Slow down and smell the roses so to speak. It may sound fluffy, but slowing down can help you evaluate situations with a clearer perspective so you make more intentional decisions with your time and money.

To hear us talk about this subject in more detail, be sure to listen to our podcast episode, “I Wish I Knew Then What I Know Now About Building Wealth.”

FILED UNDER: Blogs

Most Recent Episodes

How to Win With Money in 2023!

Financial resolutions are always near the top of the list of Americans’ most popular New Year’s resolutions. Whether you want to save and invest more, pay off debt, or have other financial goals, we will give you the tools you need to win with money in 2023.   In this...

TikToks That INFURIATE Financial Advisors

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

5 Levels of Wealth AND How to Achieve Them! (2023 Edition)

We believe there are five distinct levels of wealth, but they aren’t solely dependent on income or net worth. We’ll walk you through each of the five levels - including how to know where you are at, how to advance to the next level, and signs you are doing it right.  ...

Average Net Worth By Age in 2023!

It’s time for one of our most anticipated shows of the year: our annual Net Worth By Age show! In this year’s edition, we’ll shared updated numbers and data for 2023 and discuss the most important things for you to focus on in each decade.   In this episode, you'll...

Win Financially During a Recession! (Everything You Need to Know)

The bear market we've experienced in 2022 has been longer than many in recent memory - and some are concerned that the economy may soon enter into a recession. Here's everything you need to know to stay on-track and win financially during a recession!   In this...

The Fed Just BROKE the Car Market! (What You Need to Know)

Car prices have been on a rollercoaster ride the last few years, and it looks like they might finally be coming down. In this episode, we’ll discuss what you need to know about the current car market, pitfalls of buying a car, and how to do it the right way.   In this...

Top 4 Money Mistakes People Make During the Holidays!

There’s a reason why financial resolutions are always near the top of the list in January - many Americans spend the holiday season making financial mistakes. In this episode, we’ll discuss the top money mistakes people make during the holidays and how to avoid them....

Financial Advisors Share What They WISH They Knew About Money Earlier!

Have you ever felt like if you just knew this one thing about money earlier your finances would be in a better spot? In this episode, we’ll share the five biggest things we wish we knew about money earlier!   In this episode, you'll learn: What we wish we knew earlier...

Dave Ramsey vs. The Money Guy: Which Strategy is The Best?

Dave Ramsey has an incredible legacy of helping folks get out of debt and take control of their financial lives. We agree on a lot of things, but there are a few points of contrast. In this episode, we’ll discuss differences between The Money Guy Show and Dave Ramsey...

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...