Investment and Saving

Building Wealth Basics

By Candace Bahr, CEA, CDFA

5 Basic building blocks that will  start you on the road to financial freedom.

When the great master told her pupil, "You must first learn to walk before you can run." She could have very well been giving financial advice.

Wealth building is a result of organization, planning, and motivation. Take these 5 tips to heart in your plans to be financially independent.

1. The first step to building wealth is the decision to do so. Set a goal and then you can begin mapping out a strategy to achieve it. Sounds easy, but it takes discipline to stick with it.
   
   
2. Money begets money. When you save and invest a portion of your income, you may begin to reap the benefits of money at work.
   
   
3. Spend less than you earn. Save at least 5% of everything you make ...10% is even better.
   
   
4. Earn interest...don't pay it. Put your credit cards away, except for emergencies, and reduce you installment debt to zero. This will help you begin to pay yourself rather that your creditors.
   
   
5. Finally, put time on your side. If you have ambitious financial goals, one of the best moves you can make is to start saving as soon as possible.

To build wealth you have to be able to see the big picture. What seems like an insignificant amount now, will become significant later. Just remember… baby steps.

At WIFE we welcome your comments. Please feel free to contact us.

Help support WIFE.org and the Money Club

All proceeds support the non-profit Money Club and WIFE web site and projects
Free Gifts with Different Membership Levels