Tips For Building Wealth When You’ve Started With Nothing

What’s the key to financial success?

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How do you best ensure your own financial stability, and have something to pass down to the next generations? You have to focus on building wealth, but that’s not easy when you’re starting with nothing. No worries. These tips will help you create the foundation you need, and then grow from there. 

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Getting Started With Building Wealth

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Everybody has to start somewhere. Deploy these tips to develop a healthier relationship with money, and take important steps towards your financial goals.

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Shift From a Poverty Mindset to a Wealth Mindset

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This is a tricky one, but it’s so important. If you’ve lived with limited funds, you probably have some thought processes that lead to unhealthy habits. You may not be able to make every change immediately, but you can begin to recognize habits, behaviors, and attitudes about money that could be holding you back. Here are some things to think about:

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• Falling Prey to Instant Gratification - People who struggle financially often give in to instant gratification. This isn’t a lack of discipline or entitlement. Instead, it’s a result of a cycle of feast and famine that is so often a part of poverty along with a lack of hope for long-term financial stability.
• Lack of Financial Literacy - To be clear, poverty is a complex thing, and it’s important not to reduce that to any one cause. That includes a lack of financial literacy. Still, before you build wealth, you need to recognize where your understanding is lacking.
• Survival Vs Long-Term Growth - What will it take for you to be able to focus on long-term financial growth?

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Get a Handle on Your Expenses

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Write down what you spend. Then, use that to create a budget that is based on your current earnings and spending. Once you have that, you can begin the process of cutting out needless expenses. Challenge yourself to save a certain percentage from each budget category. 

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Once you carve out some savings, use that extra money wisely. Don’t treat it as a slush fund to be raided whenever you want something. Instead, have a clear plan for the money you save. It can go towards debt reduction, savings, or used for another specific purpose.

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Get Your Partner on The Same Page

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If you’re with somebody, this needs to be a team effort. Couples who encourage one another to work towards a goal are more likely to make it happen. If you’re looking for romance, mention your financial goals in your dating profile on apps like Hily. That way, you’ll attract people who share your vision.

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Find a Way to Boost Your Income

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What would just a few hundred dollars more each month do for your financial situation? Would it give you more money to save, invest, or pay off debt? Consider how adding one or two more streams of income could help maintain your financial stability if you lose your job. Maybe it’s time to look into freelancing, getting a side job, or asking about a raise. Of course, changing jobs is often the best way to increase your income.

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Take Care of Wealth Killing Debt

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Are you working towards wealth, but constantly sandbagged by debt? The money you owe is an albatross. Make a plan to get rid of it. Start with high-interest debt, and use a methodological approach to deal with it one account at a time.

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Make Saving And Investing a Habit

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Consistent savings over time is key to building wealth. Don’t sweat the amount, just commit to putting something away each time you get paid. Focus first on creating an emergency fund, and then contributing to a retirement plan. Once you’re doing those things, you can set other savings goals, and start investing in stocks, ETFs, and other possibilities.

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Don’t Leave Tax Breaks to The Big Guys

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When you legally save on taxes, you free up more money for yourself. For example, investing in your 401k or health savings account can lower your tax burden.

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Don’t be Reactive

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Building wealth and financial stability is a long game. Don’t allow small setbacks or economic shifts to throw you off. Otherwise, you could make decisions out of fear that will throw you back into poverty mindset behaviors. 

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Moving up: Quick Tips For Risk Tolerant Folks

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If you have a good foundation or can absorb more risk, here are some more advanced steps to take. Before you start, dig a bit deeper into these. Talk to your financial advisor, get educated, and proceed carefully.

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• Dedicate a portion of your investment portfolio to high-growth stocks such as businesses in emerging industries or startups - anything with the potential to take off quickly.
• Learn how good debt can lead to wealth. For example, a business loan can be used to grow a small business and create greater income down the road. 
• Become a startup investor. Once you have acquired some success and knowledge, use that to identify startups that could give you a great return on your money.
• Explore real estate investing. Buying and selling properties can be lucrative, but it’s imperative that you know what you are doing. Consider finding a mentor to help you understand this market.
• Create a personal brand and use it to make money. Are you charming and personable? Are you a subject matter expert? Start creating content and building an online presence? This could lead to monetization, influencer opportunities, or even speaking gigs?
• Invest in crypto and other blockchain opportunities. Yes, this financial sector is volatile, but it’s possible to make money with a thoughtful and disciplined strategy.
• Trade options or forex. Like crypto, there is risk here. There’s also a potential for fast returns. Get educated and avoid get rich quick scams, and this can be a valuable part of your overall wealth building efforts.

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Wealth Building For All

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Stop thinking of wealth as something that’s only attainable for others. You can improve your financial situation and put yourself in a better position. Start with these tips along with a measured approach to financial growth.