Build Wealth on a Small Income
small income wealth building
Many of us think we have to make a lot of money to build wealth. This is not true. The main thing to remember about building wealth is the amount of money that's discretionary is the important thing. In other words the amount left over after paying for your expenses is the money that can be put to work. Most of us work hard at our jobs to make the money that keeps us afloat. Why not take some of the money that you take in from your job and employ it? Picture each dollar as a little worker. When you change your thinking to this mindset it can change your life.
Life costs money! There's absolutely no doubt about that. The first step is to get an income to cover your expenses or to reduce your expenses to be below your income. Think of yourself as a bill you have to pay just like the rent. You're paying your future self. Whatever it takes get some money to play with and put it into appreciating income producing assets like real estate, stocks, or your own business. I have to say that stocks are my personal favorite. It's easy to start with a small amount and build your financial fortress one brick at a time. There are more things to put money into than these three mentioned above. Do your research and buy into the assets that you feel most comfortable with.
I've personally built some wealth on a very small income. Below poverty actually. How did I do it? I made it a priority to build some savings. it makes me feel good about myself. What I can't understand is there are a lot of people with much higher incomes than me who run out of money about the 10th of the month and are asking friends for little loans. There's no reason for this! In this case it's all about managing money properly. Of course you do have to get your income to an adequate level first. Money is serious business! It doesn't make you happy in one sense, but it gives you options. Don't worship it just respect it. It has the potential to grow into much more.
It's imperative that you start saving and investing money today. The government and corporate employers are doing less and less for us which leaves us more on our own. Defined benefit pensions are going the way of the dinosaur, and social security is questionable. Even if social security is on solid ground why not build your own little financial independence war chest? You'll be glad you did.
© 2013 Blair Williamson, ChFC®