How to Build Wealth
10-Step Formula to Riches
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1. Live like an Undercover Millionaire
Income ≠Wealth
How to live like an undercover millionaire:
- Spend less than you earn
- Avoid buying fancy clothes
- Avoid buying new & fancy cars
To feel rich, count the things in your life that money can't buy.
2. Always Look Ahead
To build a strong financial future, break down your goals into 3 categories:
- Short term goals (1 to 5 years)
- Mid term goals (5 to 10 years)
- Long term goals (10+ years)
Understand your goals and build a plan of action.
Make your goals a reality.
3. Become the Household CFO
Assign a purpose to every dollar.
How the wealthy budget:
- 529 plans
- Business accounts
- Retirement accounts
- Emergency savings fund
- Joint / Individual accounts
Want to budget stress free?
Automate the process.
4. Pay Yourself First
You might catch the famous Warren Buffet mentioning this phrase during his investment talks.
This means:
- You save/invest
- You pay your bills
- You spend the money that’s leftover
Save and invest first, before you spend money.
It's that easy.