Accumulating wealth isn’t rocket science.
What’s Not Required To Accumulate Wealth
It doesn’t take intellect.
It doesn’t take complex strategies.
It doesn’t require you to be highly skilled at math.
It doesn’t take reading tons of books on personal finance.
It doesn’t require you to have a degree in finance or economics.
It doesn’t require you to come from a financially sound background.
What’s Required To Accumulate Wealth
It only takes the desire to improve your financial situation from where it is now.
I’m Ignorant, But I’m Still Accumulating Wealth
I’m not a financial genius.
There is countless financial information I don’t know and may never know.
But that’s okay.
I don’t need every financial piece of information available, and neither do you to elevate your financial situation.
It’s all about the financial basics.
If you master the basics, you will transform your financial situation for years and decades.
What are the financial basics?
Avoid student loans.
Avoid credit card debt.
Diversify your income.
Continuous education.
Don’t spend more than you earn.
Consistently increase your income.
Invest 10% (or more) of your income.
Don’t buy more car than you can afford.
Establish a 3–12 month emergency fund.
Don’t buy more house than you can afford.
If you master these ten things, you’re well on your way to building wealth for yourself and others you desire to help.
Living Above Your Means Creates Permanent Setbacks
Most people spend more than they earn, which permanently sets them back.
Your net worth will never grow if you constantly spend more than you earn.
It’s impossible unless you make prudent investments that will pay out in the future; this is not your average scenario.
Not Having Any Savings Sets You Back
One common need in emergencies or inconvenient situations is financial resources.
If you don’t have any savings or an emergency fund, you’re likely to create debt by leveraging a credit card or personal loan to help cover the cost of the inconvenience.
Most people don’t have savings.
And the longer they go without savings, the more debt they’ll likely lead themselves into.
Financial peace and independence are built on a solid foundation.
A solid financial foundation encompasses an emergency fund.
You will rarely be inconvenienced when you have savings of 6–12 months set aside.
Nothing surprises you anymore or catches you off guard, which is a luxury since most people are looking out for that next paycheck.
Living Above Your Means
It’s tempting to become materialistic in our society. Things are praised and overvalued, and you could be labeled an outcast if you don’t have them.
People look at you differently based on how you’re dressed.
Neighbors feel bad when their neighbors are doing better than them, driving better than them, dressing better than them, traveling better than them, and living better than them.
It’s a never-ending competition.
This is, unfortunately, the world we live in.
For those who refuse to get caught up in this wild materialistic frenzy, you will experience financial, mental, emotional, and spiritual peace.
The less you desire, the more free you are.
But another benefit of desiring less is you keep more money.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.