If you are just barely paying your bills each month, the very concept of growing your wealth to achieve financial freedom might seem like a pipe dream.
But if you do not take steps towards financial independence no matter your circumstances, you will never have a shot at financial success.
What are the real secrets to financial success? Let’s go over a few pointers which can help you grow your wealth regardless of your financial situation.
1. ‘A Penny Saved Is a Penny Earned’
We have all heard that a ‘penny saved is a penny earned.’ But have you ever stopped to really think about what that means?
The reality is that how much wealth you actually end up accumulating is determined as much by how you spend. You could pull in more than $100,000 per year in income and have zero retirement savings if you spend most of that money every year (and that is surprisingly common). So the more you spend, the harder you have to work just to move forward.
The bottom line? If you cannot control how much money you make, at least do all you can to reduce how much you spend.
2. Looking for a Shortcut? Consider Getting Married
You have probably seen articles with titles like, “How I managed to retire early making just $30,000 per year.”
Somewhere maybe halfway down the page, the person will casually mention their working spouse, and then press on with the rest of discussion.
The truth is that the spouse should be mentioned very prominently. If the spouse is earning $30,000 per year as well (which is likely), the real income for that household is probably double what the article title claimed. Marriage brings certain tax advantages as well.
Trying to earn and save for retirement is a lot harder and slower if you are doing it all on your own.
3. Think About Self-Employment
Striking out on your own as a freelancer or entrepreneur is undoubtedly risky. But job security these days is not what it once was anyway. And self-employment can bring unique opportunities your way.
What kinds of opportunities? Well, so long as you can find work, you get to control the rate you charge, how many hours a day you work, and how you spend your time. That not only increase your overall freedom but allows you to work longer hours if you want to add more to savings.
Best of all, everything you earn (that you do not spend on taxes) goes toward supporting only you and your life.
4. Plan Realistically
The harsh reality is this: a lot of people working today will not be able to save up enough for a full retirement. But that does not mean you have to give up. You might need to redefine how you set goals for your future.
Did you know that originally social security was not intended to serve as your sole income source after hitting retirement age? It was just intended to give you an extra stream of income so you could reduce your overall hours.
If you have done the math and figured out that you will likely never fully retire, plan instead to semi-retire and do so as comfortably as you can.
In other words, ‘wealth’ means enough financial freedom to pay your bills and free up as much of your time as you can during your golden years.
5. Don’t Go It Alone
Even if you do not have a spouse to help you build wealth, that does not mean you should approach wealth-building completely by yourself.
Consider banding together with family or close friends. If you can help someone you love out today financially, that might empower that person to do the same for you tomorrow. When we stand together, we are able to accomplish more and live fuller lives.
Wealth-Building Takes Hard Work & Creativity
Wherever you are at now with regards to your financial status and goals, the sooner you start focusing on building wealth, the better. With the wealth-building secrets above in mind, you hopefully will be able to pave the road to a financially successful future!