The other day I listened as a financial expert answered the question, what’s the best way to build wealth now? She said, “Earn it.” She went on to say having a job and earning money is the best way. I was appalled to hear that answer. Having a job is fine, but it is a far cry from building wealth. Many people struggle to pay all the bills every month, even with people working two jobs in the household.
I would have said the best way to build wealth is to have your money create more money. When you get to the point that your money starts creating more and compounding, it will start adding up faster and faster. The real backbone of wealth building is always compound interest. Having a job and saving money won’t do it. You have to save and then find a money engine to grow your money faster.
Of course, there are different investment vehicles you can choose to use as your money engine, there’s no ONE perfect investment. All investments that grow your money involve risk and have advantages and disadvantages. I’ve talked many times about starting a business as the most common way millionaires build wealth. The expert didn’t like the idea of starting a business either.
Needless to say, I have very different opinions, mainly because I successfully built wealth as an investor – not as an author. The best way to build wealth is always to get your money to work for you so you don’t have to work so hard. Getting it growing and compounding is how wealth is created.
Easy steps to get you started:
1. Work on creating a wealthy mindset. How you think about money is much more responsible for how much you have or don’t have. Read my past blogs for explicit details to create a wealthy mindset.
2. Save a nest egg. Before you invest, you have to save money. The more you can save, the more options you’ll have available to you and the more attractive choices you’ll have.
3. Find a mentor. That’s my purpose and passion and I’m honored to have you here listening to what I say. I’ve helped many people change their financial situations for the better by following my advice.
4. Invest in a money engine. You have to grow your money to build wealth. It’s not enough to let it sit idle in a savings account. I have written many past blog posts about where to invest now to take advantage of the next bubble. Going with the trends is the most efficient way to build wealth.
5. Let your money compound. It’s like your money begets more money which begets more money. Einstein said, “Compound interest is the eighth wonder of the world” for good reason.
And that, my friends, is the best way to grow money now!