Wealth building is a common life goal for everyone. We strive to b e rich for a lot of reasons. It can be to improve the quality of our life. Or it can be to finance that dream business or vacation that you have always wanted. It can also be to get rid of our dependence to debt. While a lot of people may say that the amount of money that you have does not define who you are as a person, you have to understand that up to a certain level, it can provide you with happiness.
In a study done by Gallup.com, it was revealed that the more financially secure a person is, the more they feel happy. The definition of a financially secure person, according to the study, are those who have a job and are content with their standard of living. The study considered another factor – interpersonal security. This is when a person feels respected or they have someone to rely on, they are considered to be interpersonally secure. 83% of the respondents of their survey who are considered to be financially interpersonally secure laughed more. Those who are not financially or interpersonally secure, only 24% of them are happy.
While money is not the sole reason for your happiness, you need to understand that it can influence it up to some extent. Money can make you happy when you have enough to supply for your needs. Having it in excess, although it will not directly make you happy, can help you secure that happiness. That is why wealth building is important. It will ensure that you will have enough money to sustain your basic needs and thus make you content – even when an economic crisis will strike.
5 important rules if you really want to get rich
Of course, growing your wealth is easier said than done. In our consumerist society, there is always the temptation to spend your money on useless things – or stuff that you do not really need. But if you are serious in wealth building this year, then you may want to consider these 5 rules. They can help you overcome the temptation so you can successfully reach your financial goals.
Rule 1: Always start with goal setting.
Any endeavour, big or small, can be successful if you know why you are doing it. This is why a goal is always important. You need something to motivate yourself to grow your household wealth in order to finish what you started. Some people lose sight of the reason why they are working hard to build their wealth and that makes them give up even after a small setback. You want to avoid this as much as possible. Whether your wealth building goal is fueled by the need to erase debt payments or to secure your future, it is important to define this. Write it down and put it in a place where you can see it often. That should keep you focused and concentrated on the task that you need to accomplish.
Rule 2: Know the options to grow your money.
The second rule is to know how you will grow your money. The most common way that you can effectively increase your wealth is when you invest it. You have so many option before you. You can invest in stocks, bonds, mutual funds, ETFs – it is all up to you. The important thing is to know your options so you can choose the one that you will invest in. That way, you can maximize the growth of your money. Not only that, it can grow in at a rate that you personally prefer. For instance, people who are after a low risk investment that will yield long term profits should go for bonds. Those who can afford to risk their money at the expense of getting a higher rate of return can invest in stocks.
Rule 3: If you don’t understand, educate yourself.
Another rule that you need to seriously implement in your life during wealth building is to get help when you need it. This does not only refer to getting professional help. If there is something that you do not understand, you have to educate yourself. Do not just jump into something that you do not fully understand. As we discussed, one of the most popular ways to grow your money is through investing. It will always involve a certain amount of risk – even bonds that are considered to be the most secure. Knowledge will protect you from failure so take time to know your options.
Rule 4: Track your money.
Just like a seed you sow will have to be watered, put under the sun and nurtured, you need to monitor how your money is growing. It is not enough that you put it in stocks or your bank account and leave it at that. You need to check on it constantly so you can see if it is growing as you planned. Wealth building is not an overnight thing. You have to be patient because it will take time. And as you wait, the best way to spend your time is to ensure that your money is growing under the best possible conditions. If it is not as you expected, then look for another place where you can grow it. That is how you teach yourself how to invest to grow your personal wealth.
Rule 5: Do not be too greedy.
Some people are successful in wealth building but only at the expense of their loved ones and personal well being. Remember that you wanted to be rich so you can be happy. If that was your goal, you need to keep in mind the other things in your life that are making you happy. As your nurture your money, make sure you allot the same for your relationships and even yourself. Do not be too greedy that you are losing out on the other important things in your life.
The USA has the most number of millionaires in the world
You may be thinking – how can I be wealthy if the economy is not as strong as it used to be. Well here’s where you stop looking at everything around you and focus on what you know you can do. Success starts with the right mindset. Even if you think that the odds are against you, it helps to have the confidence to know that you can beat the odds.
If you are doubting the opportunities that you have at the moment, then you may want to read the article published by CNBC.com. The article released on October 2013 revealed that despite the economic conditions of the country, 1.8 million millionaires added to the already 11.5 million millionaires. That means, we already have 13.2 million millionaires in the country. If they can do it, then you should know that the economic conditions in the country should not be a hindrance to your pursuit of wealth building.
What is important right now is you begin with your first steps. No matter how small it may be, as long as you will not falter in taking one step after the other, then you can achieve the financial status that you are longing for. Do not be discouraged if you only have so little to begin with. You can grow that as long as you follow the rules that we have specified in this article.
Here’s a video from National Debt Relief that discusses tips to help you get more money. You can probably start with this and you can improve your strategies as you go along.
Diana hates debt just as much as you do. She is a finance writer for National Debt Relief. She aims to provide the best information to win the battle against debt.