N67) Top 9 ways to build wealth

 Top 9 ways to build wealth

1: Save on Vehicles

I was very fortunate that I learned this lesson when I was still in college. This led to me driving a 1998 Chevy Lumina that was completely paid for because I inherited it from my deceased grandmother.

Not having a car payment allowed me to invest in myself, my Roth IRA, and my 401(k).

According to Jason Fogelson for Forbes: "The biggest mistake a car buyer can make, especially in the age of the Internet, is to buy a car without doing research first. Some buyers are so eager to get through the car-buying process that they don’t take the time to find out everything they can about vehicle reliability, pricing, and financing."

I agree. But let's focus on the financing part for a minute. Car loans come with ridiculous interest rates that nobody should have to pay to obtain transportation. Car loans can easily be one of the highest-cost debts of many American households.

Too many people view car payments as "normal." Sure, it's normal, but "normal" won't help you produce wealth, my friend. Instead, consider doing what I did and driving a car that you own outright. It'll be easier on your pocketbook over the long term – I promise.

2: Save on Shelter

In addition to that, my wife and I rented a house for the first year that we were together. Not having the mortgage payment allowed us to build up our emergency fund and also save for our retirement.

But what if renting seems to be more expensive than having a mortgage payment? According to Beth Braverman for Forbes:

And what happens when you can't sell your home when you need to move due to a job change or another reason? You pay a whole lot of money not only for the house you can't sell but also for the house you move into.

If you need flexibility, consider renting like we did – even if the rent payment is higher than a comparable home with a mortgage payment.

3: Don't Buy Crap

Lastly, we didn’t buy crap we didn’t need.

Ask yourself what you really need and really don't need. Do you really need that million-inch flat-screen TV? No, you don't!

4: Save a Percentage of Your Income

Savers like my wife and I are definitely in the minority. Very few people save a substantial amount for the future, but if you think we’re in the minority, then check out Pete from MrMoneyMustache.com who advocates that you should be saving between 30 to 50% of your income. While that’s definitely on the extreme side of things, Pete is just another example of how it can be done.

Granted, the more you make the larger a percentage you can save. The point here is to make some steep sacrifices so that you can put more of your wealth toward investments that are right for you.

Earn Much, Much More

As the old saying goes: "You have to have money to make money." I know what you’re thinking though: "Well Jeff, I don’t have any money, so how can I make money if I ain't got no money?"

First, let’s address something. When you say that you don’t have any money and believe that, you’re already setting yourself up for failure. You have to change your mindset and believe that you can find a way to make more money.

5: Work Hard Now

When I think back to how I was able to advance my career, I remember when I was an unpaid intern at the brokerage firm that ended up hiring me. As an intern, I was working 12 to 15 hours a week, showing up when I was told to show up, dressed, and ready to impress. The majority of my duties were shredding important documents, filing, and other basic administrative duties.

Even though the work was boring, I did everything that was asked of me and above. My work ethic and drive spoke for themselves. After that summer internship, I was offered a full-time position.

If you have a job, even though you might not like that job, give it everything that you’ve got. Treat the company that you work for as if you own it. Imagine then that you’re the CEO. How would you approach your daily duties differently if more was on the line?

It's really difficult to find great opportunities. It's possible, but it isn't easy. For now, I recommend that you focus on working hard. People around you will start to take notice.

Just like I was offered a full-time position because I worked hard as an intern, you will find doors of opportunity opening for you when you give your work all you have.

6: Invest in Your Education

Another way that you might be able to make more is to invest in your education. This could be getting your degree, getting an MBA, or getting a specialized designation. For me, getting my CERTIFIED FINANCIAL PLANNER™ certification has yielded thousands of dollars of revenue over the years.

When I first passed the exam for my certification, many people asked me, “Congratulations, does this mean that you get a raise?” There was no immediate financial benefit for me. It was a year out of my life where I studied my butt off, but I knew having that designation would give me the education and also the credentials to set myself apart from the competition.

While I didn’t see any immediate financial benefit, I can attribute several new clients as well as several media opportunities to the fact that I'm Jeff Rose, CFP®. You can get your certification, too!

7: Invest in Yourself and Your Marketing

Over and above that, I have invested in myself. When I was first starting off, I didn’t have a lot of money, but I knew I needed to look the part so I bought fresh shirts, ties, suits – anything I could to make myself look more like a professional. I also invested in personalized brochures, seminars, and other marketing materials to put myself out there.

Another way I invest in myself is by paying $8,900 per year for Strategic Coach – a coaching program with workshops, program advisors, and like-minded entrepreneurs. Dan Sullivan of Strategic Coach has created a program I've found hugely beneficial to my business – my business has grown as a result of his work. Many of his quotes like this one pack a punch:

I always made sure that I didn’t overextend myself to where I was spending more than I could afford. A lot of the money that I earned wasn’t going toward frivolous things such as big-screen TVs or going out to eat at high-end restaurants. Instead, the money went toward investing in myself and my business.

8: Venture into Entrepreneurship

I highly recommend you start building wealth by venturing into entrepreneurship.

When I became an entrepreneur, my wealth-building journey really took off. Several years prior, I had read the book Rich Dad Poor Dad. In that book, author Robert Kiyosaki introduces the concept of the cash flow quadrant. He looks at four different entities: the employee, the self-employed, the business owner, and the investor.

When I read that book I fell under the employee quadrant, but I knew that if I ever wanted to make serious money, I had to get into the right type of quadrant – either the business owner or the investor quadrant (the investor quadrant is actually the best).

When I first started as a financial advisor, I was still an employee. I had the ability to make my own hours and grow my business as much as I could, but I also had a lot of restrictions.

My first step was crossing over to being self-employed. Just by making that shift, I saw a 30% increase in income in my first year. Since then, I’ve become a business owner – and now I consider myself also to be an investor. As a business owner, I own my wealth management firm. I own my blog, GoodFinancialCents.com, and I also own a few other online properties that all yield my income.

9: Try Real Estate

Speaking of real estate, although it didn't work out for me and it's not right for everyone, it has certainly worked out for others. I asked Brandon Turner from BiggerPockets.com just how quickly real estate investing can help individuals build wealth. Here's what he had to say:

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