How Can I Build My Wealth Quickly?

September 19, 2021

Fresno Retirement Planner News

While there’s a lot of planning involved in the short-term, your financial decisions in your “younger” years have an impact on how your retirement and stream of income will pan out. If you’re actively thinking about your future retirement plans, here are a few wealth accumulation strategies that will help lead you on a smooth path. Here are 6 suggestions to remember.

Lower Debt, Increase Income 

The debt to income ratio is always one of the most important financial indicators when it comes to wealth management. It’s merely your monthly debt expenses compared to your monthly gross earnings. For wealth accumulation purposes, lowering debt is essential.

Save on Vehicles

I was very fortunate that I learned this lesson when I was still in college. This led to me driving a 1998 Chevy Lumina that was completely paid for because I inherited it from my deceased grandmother.

Not having a car payment allowed me to invest into myself, my Roth IRA, and my 401(k).

According to Jason Fogelson for Forbes: “The biggest mistake a car buyer can make, especially in the age of the Internet, is to buy a car without doing research first. Some buyers are so eager to get through the car-buying process that they don’t take the time to find out everything they can about vehicle reliability, pricing and financing.”

I agree. But let’s focus on the financing part for a minute. Car loans come with ridiculous interest rates that nobody should have to pay for to obtain transportation. Car loans can easily be one of the highest-cost debts of many American households.

Too many people view the car payment as “normal.” Sure, it’s normal, but “normal” won’t help you produce wealth, my friend. Instead, consider doing what I did and drive a car that you own outright. It’ll be easier on your pocketbook over the long-term – I promise.

Regular Investment Activity

Investing is a key factor in wealth accumulation. While you may have a steady full-time job or even more than one stream of income, where you put a portion of the income matters.

Save a Percentage of Your Income

Savers like my wife and I are definitely in the minority. Very few people save a substantial amount for the future, but if you think we’re in the minority, then check out Pete from MrMoneyMustache.com who advocates that you should be saving between 30 to 50% of your income. While that’s definitely on the extreme side of things, Pete is just another example of how it can be done.

Granted, the more you make the larger a percentage you can save. The point here is to make some steep sacrifices so that you can put more of your wealth toward investments that are right for you.

Multiple Retirement Contributions

It’s important to remember that while a 401(k) is a great start to making retirement contributions (especially if your company has a matching plan), it doesn’t have to end there. Retirement accounts can come in different forms, from 401(k) accounts via an employer to traditional and ROTH IRAs.

Fresno Retirement Advisor Takeaways

As your Fresno financial advisor we thought this was a good takeaway: For wealth accumulation purposes, lowering debt is essential. Car loans come with ridiculous interest rates that nobody should have to pay for to obtain transportation. Car loans can easily be one of the highest-cost debts of many American households. Granted, the more you make the larger a percentage you can save. The point here is to make some steep sacrifices so that you can put more of your wealth toward investments that are right for you. Retirement accounts can come in different forms, from 401(k) accounts via an employer to traditional and ROTH IRAs.

via 9 Ways To Build Wealth Fast (That Your Financial Advisor Might Not Tell You)

via Three Important Wealth Accumulation Strategies