Tips To Building Wealth In Tough Times

13
April

In times such as these it’s important to reconsider the definition of wealth. In the booming 80′s and the thriving 90′s, wealth and success were invariably tied to money. How much money you made a year, what you had in savings and what you had in financial investments were the only talking points that mattered when it came to personal wealth.

Today, money is still important, but more and more people are learning that it is not the whole picture when it comes to personal wealth and independence. Building wealth in the 2010′s means keeping three other pieces of the puzzle in mind:

Redefine True Financial Freedom

True financial freedom doesn’t come from having a lot of money, it comes from having money that you don’t need to immediately give away to someone else. There’s a saying that you’re really only borrowing money from the government and from corporations. Well, in truth, that money is yours, but you need to treat it like it’s yours. Putting yourself in a position where you have financial freedom means buying instead of renting and avoiding any unnecessary monthly expenditures.

Rely Less on Others and Less on Your Income

We’re always going to need money in order to pay property taxes, utilities, gas, water and so on, but wherever you can remove money from the equation, there are often better ways of getting what you want in life than to spend, spend, spend. Don’t buy what you can legally have for free and don’t pay someone to do something you can do yourself or learn to do yourself. Today’s self made millionaire is not the man in a nice suit with no real worldly skills outside of abstract business notions, it’s the blue collar contractor who knows how to repair his own truck and save money. What you don’t spend really is more important than what you earn during a recession, because what you earn usually gets eaten up by your expenses, but what you simply choose not to spend is yours to keep and yours to invest.

Create Passive Income Streams

Passive income streams are little trickles that might only earn you a penny a day, but over enough revenue channels and over enough years, can quickly snowball into some serious long term earnings. You don’t want to keep relying on your paycheck to cover your every expense. Sooner or later you’re going to need more than you can make at the average American’s day job. It can be a Youtube channel where you share with people some of your own thrifty living tips or a blog where you discuss your favorite books and movies and earn passive income through ad revenue in little trickles. If you don’t have the time or money to start your own business, this is a way to earn supplemental income with an investment of only a couple hours a week and no money up front. It’s a slow way of building wealth, but a popular blog or website can take a few hours a week to run and eventually earn you hundreds a week.

Whatever you do, try not to fall into the traps that are laid out for the poor and middle class. Credit card debt, mortgages that you just can’t cover on your salary and even some payday lenders practice predatory lending tactics that will keep you poor and drain you of any wealth you manage to build. Stay sharp and live within your means and eventually having more money than you need will become an inevitability.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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