Half of Canadians are struggling to keep up with the increased cost of living. When everything gets more expensive, trying to build wealth gets much more complicated (but also more important). You want to set yourself up for a stable financial future, but how can you do that? The experts at Kingcash want to help you start building wealth and getting more financially comfortable.
Read on to learn a few ways that you can start building your wealth regardless of your age.
Set and Track Financial Goals
All good wealth building strategies require plans. Plans require goals. If you’re reading this right now, it’s time for you to start setting and tracking financial goals.
These goals can be large, small, short-term, long-term, or anywhere in between. They should be actionable and trackable so you can plan around them.
So what should those goals look like? It depends on your unique situation.
If your goal is solely building wealth for future retirement, then retirement will be your primary large goal. Try to determine, based on your current lifestyle and income, how much money you’re going to need in order to retire. You can use a variety of helpful online calculators to start assembling this information.
Once you have a number in mind, you can make a plan for how to get there. How much money do you need to contribute every month to reach your big goal?
Small goals are also helpful. While it would be nice to put all of our income toward large future goals, that’s not realistic and it requires a lot of sacrifices that are ultimately not necessary. You can have smaller goals.
Medium goals can include things like buying a car, paying for university, or getting together a down payment for a home.
Small goals include things like paying for a vacation or assembling a rainy day fund.
Make and Maintain a Budget
You need to have a budget if you want to gain wealth. Only the very lucky few can become wealthy without having to track their spending, and they often have a leg up. If you don’t have the benefit of someone else supporting you financially, your budget will be your best friend when you’re trying to save.
To create a budget, determine the amount of money you’re bringing in in a set amount of time. It’s helpful to have both a monthly and weekly budget, but some people prefer sticking to one or the other to keep things more manageable.
Then, determine your standard expenses. Some of those expenses will be necessary and reoccurring (such as bills) while others will be extras. Subtract those expenses from your income and see what you have left over.
That leftover money can go into savings, but you can also see if you’re able to cut corners somewhere in your budget to have more leftover money or if you actually have enough that you can add another savings goal.
It’s a good idea to revisit your budget any time your income or average spending changes.
Speaking of spending, stop overdoing it. It’s no secret that the cost of living has gone up, but it’s important to keep your spending under control if possible. Look for areas in which you’re spending too much money and try to cut back.
Reoccurring exposes are a great place to start. Are you spending money on any subscription services or memberships that you no longer use? Are you overpaying for your car insurance, internet, or other important bills?
Then look at your “extras.” How often do you spend money on things that you don’t need? Is it possible to find more affordable alternatives sometimes? Unnecessary spending is fine in moderation, but you need to fit it into your budget.
Start Investing As Soon As Possible
Investing is the best way to grow your wealth, and there are so many ways to do it. The best time to start investing is right now, no matter how old you are.
When you put money into a standard savings account (which you should), that money isn’t growing by much, if at all. It’s not going to beat inflation.
Having a savings account is important because it’s secure, but investing some of your savings will help that money grow. It becomes passive income.
When you invest in stocks, for example, your wealth grows when the stock is successful. If you’re not sure what stocks to invest in, you can work with a professional who can manage everything for you.
There are plenty of ways to diversify your investments to make your money work even harder for you. Real estate and precious metals, for example, are great in an investment portfolio.
Look for New Income Streams
Making more money is key when you’re trying to build wealth. If possible, see if you’re able to increase your primary stream of income. This may mean getting a raise at work or getting a new job.
This isn’t possible for everyone, and that’s okay. Alternatively, you can look for new streams of income to add to your primary stream.
You could start working a second job, start making money online, or do odd jobs for people in your area (among other things). Even if you’re not making much money from your secondary stream of income
Try to Eliminate High-Interest Debt
If you have a lot of high-interest debt, building wealth is going to be challenging. The longer that debt sticks around, the less money you’re going to accumulate over time.
Before you start pouring money into investments and savings accounts, find a way to pay off any high-interest debts that are costing you money.
Need Money Quick? Try Kingcash
Building wealth isn’t easy for most people, but it is possible. You may not become a multi-millionaire overnight, but you can improve your financial health and create a more stable and comfortable lifestyle for yourself and your household.
If you need money quickly while you’re trying to build wealth, try getting a loan from Kingcash. Applying only takes a few minutes. Claim your cash today.