It is one thing to build wealth but quite another to keep it. Here are some tips that can help you build a nest egg that keeps building and appreciating in value over the course of your lifetime:
Make sure you establish a good credit rating. Establish good credit while you are young and make sure that you understand that credit is a means to building a good "credit-worthy" reputation. It is a means to an end, not a way of topping off your bank balance!
Pay off your credit cards and bills in full each month before the due date. The minute you pay a credit card bill or any other type bill late you cause a domino effect with your other payments. Other credit cards immediately raise your credit card APR for not paying your "other" bills on time as agreed.
Pay for whatever you can, whenever you can upfront and in full. This does not mean avoid using your credit altogether but the more you use cash, the less interest you will be charged for your purchases over your lifetime.
Pay your taxes on time. One of the most miserable life-defining terrible mistakes that a person can make is to pay their taxes late. This not only red flags you in the eyes of the bureaucracy for an expensive and time consuming tax audit but the penalties and compound interest that is charged for paying late has created many paupers.
Own your own home-don’t rent. This is one of those secrets that are contained in every wealth building advice book out there. Obviously if you own you are gaining equity and value as opposed to paying in to someone else’s.
Don’t take out equity on your home to pay bills. There are lots of scams out there that will advise you to take out equity in your home so you can pay for credit card bills. This puts your home at risk if you can’t make a payment. Even if you have lost your job or are ill try and keep it as an asset.
Look for deals when buying real estate. Take advantage of individuals who are really motivated and need to sell their home for pennies on the dollar and then either fix it up or
resell it for a profit.
Never take out money from your retirement plan to pay bills. Money taken out of your retirement funds is not only taxed but you may have to pay interest on it. This can cost you a lot of money over the long term.
Make saving money a priority, not the last thing on your wealth-building list. Saving money has nothing to do with your income level, hard or great luck or investment decisions. Even people with low paying jobs can become very wealthy if they save money and invest their savings wisely. Financial experts call this "paying yourself first!"
Charrissa Cawley has a long standing reputation for excellence as a gifted speaker, real estate trainer and wealth coach. Her strength lies in training entrepreneurs in the areas of real estate, investing and financial literacy. Her passion is bridging the gap between learning and doing. She has helped thousands of entrepreneurs all over the world seeking financial growth by equipping them with the tools, resources and specialized knowledge to succeed.
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