If you asked most people what they want most in their lives, they would probably talk about money. It is a dream of many people to be wealthy, but most are clueless about what they need to do to gain this elusive wealth. Jeffrey Baxter Jr is an expert in wealth generation and has been teaching it for years. On a recent interview with Jeffery, he gave three important secrets about how to create wealth. These secrets are outlined below.
Secret #1: Invest More, Consume Less
When people get a big paycheck, it is easy to go out and spend it on needless products and entertainment. This is one of the biggest mistakes that a person can make when striving to become wealthy. The best way to generate wealth is to let your money work for you, and that can best be achieved by building a diverse investment portfolio. You don’t have to take crazy risks, but you should have your money spread across investments that will continue to compound more interest and be worth more in the long run. Minimizing your consumption expenses such as fancy dinners or new electronics and instead putting those funds into an investment is the smart way to use your money.
Secret #2: Become an Entrepreneur
Owning your own business is a lot of work, but it is a rewarding endeavor that can help you become far wealthier than a standard career ever could. If you can start a successful company, you have a much better opportunity to generate more wealth and continue to reap the benefits of higher-yield investments. Becoming an entrepreneur allows you the freedom to make decisions about the company, and these could be key in making it more profitable and ultimately making you wealthy. Working for a wage or a salary may be more secure, but the upside to entrepreneurial undertakings is far greater. Nobody ever became wealthy by being lazy – hard work is one of the keys to making money. Putting in the extra work it takes to own your own business is the extra step that is needed to acquire legitimate wealth.
Secret #3: Save Money and Make it Hard to Access
It’s no secret that saving money means making money. While you need to have access to a certain amount of funds at any given time, you should make your excess funds difficult to access so that you aren’t tempted to overspend or dip into your savings accounts. One simple way to do this is to unlink your checking and savings accounts. This way, you can’t simply transfer funds with the click of a button and will instead have to stick to a budget that is based on your current checking account. You can also put your funds in short-term investments that have penalty fees for early withdrawal in order to discourage yourself from overspending. Any account that makes it more difficult for you to access your money is a great mechanism for generating greater levels of wealth.