If you’ve been listening to the news, you know that one percent of people now own half of the world’s wealth. It seems like the wealthy know something we don’t! But really, the secrets of getting ahead aren’t such a mystery after all. While you might never become as rich as Warren Buffett or Bill Gates, you can put some of these lessons to use in building your own nest egg.
Spending should match your goals. True, it’s much easier to lecture on spending when you have plenty of money lying around! But contrary to popular belief, most wealthy people don’t live on a nonstop spending spree. Many of them became wealthy because they set goals, and then aligned their spending with those goals. They might be willing to invest in something that truly matters to them, but they aren’t out there buying things for the sheer fun of it. Identify what matters most to you, and stick with it.
Don’t compete with others. When your attention is focused on what you want, rather than what everyone else has, you’re less likely to spend yourself into debt just to impress other people. Always live below your means, not beyond them.
Prepare for emergencies. If you’re not spending every last dime you make, you can set aside some liquid resources for an emergency. That way, one financial setback doesn’t have to devastate you for years. Set aside enough cash to cover six to nine months of living expenses.
Taxes can tremendously impact your long-term wealth. As our presidential candidates have made us aware, the wealthy are skilled at locating and utilizing every available tax deduction and credit! Work with a skilled professional to lower your tax liability, especially with regard to retirement income, and you can keep more of your money in your own pocket.
Advisors are tremendously important. Most wealthy or powerful people got that way by surrounding themselves with smart, skilled advisors. Budgeting, investing, saving, and tax planning can all make an enormous impact on your long-term financial outlook. Consult with experts, and you can make the best decisions for your situation.
On that note, remember to schedule an appointment with us soon. We can discuss your short- and long-term financial strategy, identify areas that can be improved, and work with you to create a plan for financial success.