How Do You Plan On Getting Wealthy? Try These Steps.
At the beginning of every year, I set personal financial goals but before I write those out, I review Black Enterprise's Wealth For Life Principles - an awesome guide for those who are unclear about where to start. Check them out below:
1. I WILL LIVE WITHIN MY MEANS.
This starts with creating a budget so that you know what's coming in and what's going out. If you have more going out than coming in, you are living above your means.
2. I WILL MAXIMIZE MY INCOME POTENTIAL THROUGH EDUCATION AND TRAINING.
I'm not a fan of going into more student loan debt if the "return on my investment" won't amount to much (i.e. better job, increased salary). However, advanced degrees are not the only way to increase your income potential. Certifications can provide a skill necessary to go to the next level within your company. They are usually less than $5,000 as opposed to, for example, a $30,000 Marketing master's degree that doesn't amount to much in its industry compared to the value of experience.
3. I WILL EFFECTIVELY MANAGE MY BUDGET, CREDIT, DEBT AND TAX OBLIGATIONS.
The most important step after creating your budget is to implement it. Basically, you should pay all of your bills...on time.
4. I WILL SAVE AT LEAST 10% OF MY INCOME.
Saving 10% of your income can seem hefty to some while trying to pay off other debts. The goal here is to save something even if you can't YET reach the 10% mark. It also helps if you have a savings goal, something to look forward to like buying a house, travel, college fund, emergency fund, or whatever else you might want to save for.
5. I WILL USE HOME OWNERSHIP AS A FOUNDATION FOR BUILDING WEALTH.
I definitely think this depends on your lifestyle or the lifestyle you want to live. Home ownership isn't for everyone. If you feel like you are rooted to the city where you currently reside, owning a home is a great stepping stone to building wealth over the long-haul.
6. I WILL DEVISE AN INVESTMENT PLAN FOR MY RETIREMENT NEEDS AND CHILDREN'S EDUCATION.
With the state of our economy, having a plan to retire is a must. You should not solely rely on Social Security which may be obsolete by the time most of us reach retirement age. Invest in your future self.
7. I WILL ENSURE THAT MY ENTIRE FAMILY ADHERES TO SENSIBLE MONEY MANAGEMENT PRINCIPLES.
Your relationship with money is greatly influenced by how those in your home handle money. I think it is important to set a foundation of good money habits by talking about the purpose and uses of money with your children.
8. I WILL SUPPORT THE CREATION AND GROWTH OF MINORITY-OWNED BUSINESSES.
Supporting businesses in your own neighborhood slows down gentrification, decreases crime, increases the ability for your neighbors to support their families, and a host of other positives.
9. I WILL GUARANTEE MY WEALTH IS PASSED ON TO FUTURE GENERATIONS THROUGH PROPER INSURANCE AND ESTATE PLANNING.
None of us lives forever so it's important to make sure that your family will be well-taken care of if anything were to happen to you. It's also important to leave a legacy for future generations for when the time does come for you to pass on.
10. I WILL STRENGTHEN MY COMMUNITY THROUGH PHILANTHROPY.
Simply, it feels good to give back. Not only do you get to help those less fortunate than you but you also get to see that you don't have it nearly as bad as you might think. Donating or giving of your time and resources may help to pull a family or individual out of their circumstances so that hopefully, when they're on their feet, they can do the same for another family. What a wonderful ripple effect...started by you.
Having a healthy financial life ensures that you can deeply enjoy and experience life, on your time and on your terms. What will you get started on first? Or maybe you've already completed a few of these steps, what's next for you? Share in the comments below.