4 Amazing Ways to Build Great Wealth!

Mar 15

Last month, I had the opportunity to interview almost a dozen super-rich people. They had an average net worth of $100 million.

Here’s what I learned!

It’s All About the Money!

Wealthy people focus on the money:

How to make it;
How to keep it; and
How to minimize taxes!

And you can too!

Now, I am Not saying that we should obsess over saving money or live and breathe saving money and building wealth.

However, it’s very worthwhile to think about ways to increase your income, save more money, stretch your dollars and build wealth. When you put the ideas into action, it’s Much More Likely that You Will Build Wealth than if you don’t do anything differently from what you’re doing currently.

While $100 million may dwarf the money you and I may have, you Can organize yourself and your money to build wealth.

On a relative basis, while wealthy people may play with more money and bigger dollars then you and I do, saving and investing 3%, 5% or 10% of your money will add up very nicely! And help you live the life you deserve!

Don’t miss! Take action today!

In effect, money is a tool, much like a hammer and saw.

You can spend money.
You can save money.
You can invest money.
You can pay down debt.

1.Spend Less

When you spend your money, it’s gone!

If you buy groceries and pay your living expenses for example, those are essentials. Necessities.

You have to eat. And you have to live somewhere.

But, do you have to buy the most expensive foods?

Do you have to dine at fancy restaurants?

Could you purchase or lease a less expensive automobile?

Could you possibly move to a less expensive house or apartment?

After I got divorced in 2007, I rented a small house. I wanted to live near my children so we could visit each other. In fact, I lived in the same town and the house was on the “bus route.”

The rent was $2,160 per month. In addition, I had to buy fuel oil, which cost me approximately $400 a month. That totaled $2,560 per month.

When I moved, I did purchase a two-bedroom coop. While owning a coop Is different from renting an apartment, the total carrying charges were $2,350 per month.

However, the maintenance (common area charges) include fuel. So I save the $400 per month – after tax.

In addition, a portion of the maintenance – property taxes and interest on the coop’s mortgage – is tax-deductible.

Plus, there’s approximately $900 in principal amortization (equity buildup) every month.

Even so, a number of the apartments in our complex were available for rent and the rent was approximately $2,000 per month.

Discretionary spending may create enjoyment and smiles. But You have to decide whether it’s better to reduce spending; increase saving and investment to build wealth; and balance spending, saving and investing.

You get the point.

An added benefit was that the town I moved to was a “walking town”. In other words, everything is walkable, including the restaurants and pubs, the supermarket, CVS, the Post Office and the commuter rail station to New York City. This enabled me to reduce my annual mileage (driving) from approximately 12,000 miles to 7,000 miles. This saves money too.

2. Save More Money.

Instead of spending money, you can save it for the future.

One way to save money is to reduce your expenses, as described above.

One of the best ways to save money is to reduce waste.

One of my favorite ways to do this is to cancel unused and extra subscriptions.

As I’ve mentioned in previous blog posts, I had subscribed to Golf Digest® magazine and hadn’t read six issues in a row. I cancelled my subscription and saved $50 per year. Easy!

Cable TV – cutting the cord or downsizing your subscriptions saves money.

Join a less expensive health club!

Or resign and exercise at home. You’ll find plenty of exercise videos and classes on YouTube.

And while you’re at it, download the amazing ProductivityGo App which offers loads of terrific workouts and online classes. Available on Galaxy and Apple.

Saving money is a good idea, especially when you set aside money for a rainy day, an emergency or an unexpected expense that may pop up. By doing this, you’ll avoid credit card debt and avoid costly interest expense.

3. Invest More Money.

Investing money regularly is a powerful and effective way to grow your wealth This is the ticket.

Create a well-thought out, long-term investment plan.

Invest continuously and regularly.

4. Pay Down Debt.

Debt can be productive if for example, you want to purchase a house, condominium or coop; a car; build a business; or advance your education and acquire new skills – student loans.

Credit card debt is an Extremely Costly way to generate cash to spend today. Interest rates can range from 15% to 28% per year. Ouch!

Avoid credit card debt like the plague.

Look to pay down debt smartly and on a reasonable schedule that you can afford. Starting with the debt with the highest interest rate first.

For major purchases like home appliances, cars and a down payment on a home, Save Money in Advance of your Purchase. This way, you save money by paying less interest expense and potentially paying a lower interest rate.

In summary, wealthy people continually look for ways to:

Spend their money wisely. You can too!
Save more money. Wealthy people continually look for ways to reduce wasteful and unnecessary spending. This frees up cash for more productive uses like paying down debt and investing to build wealth. You can too!
Invest money. Wealthy people continuously invest money methodically to grow their wealth. You can too!
Pay down debt and save money in advance of major purchases. You’ll reduce your interest expense and save more money. You can too!

These four practices will put more money in your hands and more wealth in your pockets!

To repeat once more, on a relative basis while wealthy people may have more money and bigger dollars to work with than you and I do, saving and investing 3%, 5% or 10% of your money will add up nicely!

Don’t miss! Take action today! And live the life you desire.

Until next week,

Arthur V.