Wealth Building Lessons

1. Make more than you need.
   If your needs are higher than your salary, work harder or get another job. May be you can go back to school to retrain for a higher paying job.

2. Spend less than you earn.
   And save or invest the rest.

3. Eat home cooked meals at work as often as you can.
   Its cheaper and healthier than eating out.

4. Understand how taxes work.
   And make sure you take advantage of all the possible deductions that you’re entitled to.

5. Get out of debt.
   And stay out of debt. Once you’ve paid off your credit cards, don’t rack up bills you can’t pay off when you get your statment. I still use my credit cards because I get 3% cash back for eating out, 2% cash back on travel and 1% on everything else.

6. Invest your savings.
   Make sure you’re putting your money in a savings account that earns you interest every month.

7. Save for retirement.
   A hundred bucks a month may not seem like a lot, but after 40 years it can provide for a comfortable retirement. Savings in retirement plans are also tax deductible.

8. Clean up your credit.
   People with bad credit pay more interest. On big ticket items like cars and houses the difference can add up to hundreds of thousands of dollars over your lifetime.

9. Make sure you understand your mortgage terms and get the best possible rates and terms.
   Buying a house will be the biggest expense you’ll ever make. On average, people change houses every 7 years which means you’ll be buying a couple of houses in your lifetime. If you do not know how mortgages work, I guarantee you will be taken advantage of atleast once and end up paying thousands more than you need to.

10. Learn as much as you can about finance.
    No one will take care of your money like you will.

There are no secret sauces to becoming wealthy. It takes dedication, sacrifice and effort to pull yourself out of debt and towards riches. The sooner you start, the quicker you’ll be on your way to creating wealth!

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