While money doesn’t buy happiness, there’s no doubt that it certainly eases the quest. Decades ago, building wealth wasn’t nearly as easy or as accessible as it is now.
The following tips are some of the most effective ways to accumulate wealth now.
How to Accumulate Wealth: 5 Simple Tips
1. Stop spending.
It might seem obvious, but learning to control impulsive, discretionary spending might be the best first step to increasing your overall wealth. (Spending only increases someone else’s wealth, after all—and at your expense!) Before bringing home one more thing, ask yourself if you really need it and how much it will improve your life. When you have a compelling reason to buy, remember that comparison shopping has never been easier—it's in your power to make the smartest purchases.
When you want true bargains, consider thrift stores that often have amazing products at rock-bottom prices. E-commerce sites like Craigslist or Ebay can be good sources for merchandise at lower costs. Cars are a major expense, and buying used is always a better value used than new.
2. Save your time and money.
It’s almost always true that you need money to make money, and as yours starts to increase—whether it’s by becoming a smart consumer or earning more, it's a good idea to save at least some. Over time, it will accumulate to the point where you can put it to good use in an investment or venture.
Many people who hope to give up their day jobs to run a financially-lucrative company have had to learn great time management strategies. Make a conscious effort to evaluate how you use your day and identify ways to save wasted time.
But, whatever you do, don’t compromise sleep, exercise, and eating well. Being more effective and productive starts with feeling good and being healthy. Even the most disciplined and efficient people can’t perform at their best when they’re stressed.
3. Find a side hustle.
Accredited, online schools make it much easier to diversity your income—generating potential via training or education. Identify your interests and match them to a program that could lead to other part- or full-time opportunities to increase your wealth.
A real estate license, for example, could lead to a lucrative part-time career for evenings and weekends from the start. Becoming a certified financial planner or a small business accountant is another way to increase your income while holding down a full-time job in another field.
Many other options exist where you can start small and as you build your clientele to augment or replace your current job with a rewarding career of your own. According to Entrepreneur.com, fewer start-up companies fail now than did 35 years ago, mainly because their owners are better educated and the Internet simplifies marketing and communications.
4. Make use of professionals and coaches.
Trying to be everything to yourself or your business may be short-sighted. A life coach may be helpful to keep you on track with your personal and professional development. Often people are their own worst critics. Having someone you can count on to give you objective and positive advice about your progress toward a goal, emotionally or financially, could be immensely valuable as you establish goals and move forward.
5. Invest in real estate.
There are many ways to invest your money that promise to help you grow your wealth quickly. Putting money in turnkey real estate is one of the best choices you can make to increase cash flow and build an investment portfolio simultaneously. (And as an added bonus, if you work with a good turnkey property management company, it won't even take much of your time!) Turnkey investments have a low risk level because real estate experts scrutinize the properties before acquisition. Afterwards, they use their knowledge of the market to prepare the property based on the features unique to each rental market. These property management companies offer investors a full menu of services, which makes this type of investment a solid and low risk way to increase your income stream and bottom line.